The Trump administration was ready to offer new compensation to US companies selling to Huawei, easing tensions with Beijing after a rapid escalation in trade war between the countries this month.
According to people familiar with the matter, the US Commerce Department was preparing to extend its provisional general license for companies to do business with Huawei for 90 days, with an announcement due Monday. The final extension details have not been ironed out, so there may be some changes to the message that may cause it not to be renewed. The Commerce Department declined to comment.
The decision to allow more time for transactions between Huawei and US companies is likely to be interpreted as an olive branch from Washington to Beijing as they try to bring trade talks back after a test of several weeks that rocked markets and heightened worries about global economic slowdown.
Donald Trump, the president of the United States, earlier this month said he would cancel a new round of tariffs on Chinese imports beginning September 1
Still, Mr Trump showed signs of concern about the economic impact of the trade war with China as he heads for the re-election campaign in 2020. Last week, he said he would delay the imminent imposition of levies on much of Chinese imports by December to protect the Christmas shopping market from its effects. He also softened his rhetoric on China, saying it would soon have a conversation with Xi Jingping, the Chinese president, and expected the trade war to be "relatively short."
Extending the refusal of Huawei – the first reported by Reuters – is a victory for the business community, which has strongly demanded more flexibility regarding the Chinese company.
The Trump administration blacklisted Huawei for export. led by the Commerce Department in May, after a key round of trade talks with China ended sharply. US officials have accused Huawei of threatening national security, violating US sanctions and espionage.
But US technology companies, including Google, whose Android operating system is used by Huawei, have quickly moved to claim freedom in dealing with the ban, arguing that otherwise there would be major disruption to their businesses, customers and even US security.
The extension of the license is the middle ground between the full implementation of the ban on the Chinese Hawks in Washington and allowing it to expire in its entirety. Mr Trump suggested that finding a solution for Huawei could be part of any overall trade deal with China.
"In many ways, this throws the box down the road, it's not a long-term solution," says Sam Sachs, an associate in cybersecurity and Chinese digital economics at the New America Foundation. "Many Washingtonians want to kill the company. Others want to use it as a lever. You can't have both, "she added.
The senior US-China negotiators are expected to hold face-to-face talks in Washington in early September, hoping that they will perform better than the last one in Shanghai last a month that made Mr Trump complain that Beijing was not keeping his promises and moving toward imposing a new round of tariffs, but there is no firm timetable for next month's negotiations.
Trump administration officials are linking condescending to Huawei with Chinese American purchases agricultural commodities so that trade war monitors will closely monitor whether Beijing responds by restarting its purchases of US agricultural products in the coming days.
A three-month Huawei license extension would set a new deadline for mid-November, around time. at the Asia-Pacific Economic Cooperation meeting in Chile, which could provide another opportunity for Mr Xi and Mr Trump to meet. , In the course of the trade war, the two presidents used international gatherings, including last year's G20 summit in Argentina and the G20 summit in Japan, to try to restore prospects for the deal.