The US Commerce Department said it has begun issuing licenses for some companies to sell its products to China's Huawei, expand the company's supplier base and provide long-awaited clarity to the telecommunications industry.
A few days ago, the Trump administration gave China's Huawei a third time since it was listed on a commercial blacklist due to national security concerns six months ago, allowing some US suppliers to continue to sell their products.
"These narrow licenses are issued to allow limited and specific activities that do not pose a significant threat to national security or the interests of US foreign policy," the Commerce Department said in a statement.
It was not immediately clear which products were approved for sale to the world's largest telecommunications equipment maker. But Huawei, the world's second-largest smartphone maker, is eagerly awaiting a license from Google to provide mobile applications in new models. Google has not yet commented.
Two sources told Reuters that companies began to receive notifications of "approval or possible rejection" from the Commerce Department on Wednesday, as US President Donald Trump seeks to close a trade deal with Chinese President Xi Jinping.
US Commerce Secretary Wilbur Ross told Fox Business Network late on Tuesday that the department "has 290 applications for specific licenses. We have now started sending notifications to reject applications and some approvals."
The technology expert at the Center "Washington" James Lewis, "The White House is not ready to withdraw Huawei phones because this will cause the greatest damage to US companies, but they keep it in a freeze."
The semiconductor industry association, a trading group, welcomed the Commerce Department's announcement, saying that sales of insensitive products help ensure the competitiveness of US chipmakers, "essential for national security." "We hope that the licensing approvals will continue in a timely and appropriate manner."
Citing national security concerns, the Trump administration put Huawei on a blacklist for trade in May after the collapse of trade talks. Listed companies are not allowed to receive shipments of US goods without a special license from the Department of Commerce.