Earlier, reports suggested that President Trump and Chinese President Xi Jinping had agreed to a truce to remove some curbs on Huawei Technologies Co. buying high-tech equipment from the U.S. Officials clarified that the Chinese tech giant would remain on the Entity List, but Trump would allow licenses to trade with the company under certain circumstances.
Now, according to Reuters, the U.S. may start approving licenses certain companies to start selling specific Chinese company’s Huawei products in the upcoming two or three weeks. The U.S. had banned most Huwaei products in May but can resume only if there is no security risk, according to Commerce Secretary Wilbur Ross.
The meeting between Trump and Chinese President announced American firms that could sell products to Huawei. The U.S. had agreed to put off additional tariffs on Chinese products indefinitely. While in response, China will start buying large amounts of American farm products.
“We’re going to work with China on where we left off to see if we can make a deal,” he said at a news conference. “I’m not rushed,” he said, calling the talks “intricate.” – Trump
Such an immediate decision between U.S. and China suggests chip industry lobbying. U.S. chipmakers would apply for more licenses as according to people who wanted to stay anonymous told Reuters. U.S. chipmakers include QCOM, +1.61% Intel Corp. INTC, +2.72%, and Micron Technology Inc. M.U., +2.37% have pushed sales to resume to the Chinese tech giant which bought $11 billion worth of U.S. component in 2018.