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U.S., China: White House Set to Give Huawei Another 90-Day Reprieve, Report Says

2 MINS READAug 17, 2019 | 14:20 GMT

What Happened: The U.S. Commerce Department is expected to extend a "temporary general license" to China's Huawei Technologies for 90 days, Reuters reported Aug. 16, citing two sources familiar with the situation. The extension of the license, which is set to expire Aug. 19, will allow Huawei to buy supplies from U.S. companies so that it can service existing customers.

Why It Matters: The license has become a key bargaining chip for the United States in its trade negotiations with China. An extension might breathe new life into the talks if it prompts China to increase its purchases of U.S. agricultural products. But the sources told Reuters that the situation remains fluid and the decision to continue the Huawei reprieve could change ahead of the Aug. 19 deadline.

Background: The Commerce Department allowed Huawei to purchase some American-made goods in May shortly after blacklisting the company. The reprieve was aimed at reducing disruption for major U.S. tech companies for whom Huawei is a key customer.

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