What Happened: The United States will grant a 90-day extension for certain U.S. businesses to work with Chinese telecommunications company Huawei, U.S. Commerce Secretary Wilbur Ross said in an interview with Fox Business on Aug. 19.
Why It Matters: China has made the Huawei licenses a condition for increased agricultural purchases from the United States after halting imports earlier this month. If Beijing decides to resume the purchases, it would ease some trade tensions and raise the possibility of further tariff delays. However, the Chinese government would likely prefer a permanent commitment by the United States over a temporary extension of Huawei licenses.
Background: The U.S. Commerce Department placed Huawei on its Entity List in May, effectively barring U.S. companies from selling equipment to the company without obtaining a special license.