Huawei could be handed a new 90-day window in which to buy components from U.S. suppliers for their existing smartphones.
Earlier this year, the U.S. government blacklisted Huawei after accusing the Chinese tech company of being involved in activities that threatened the national security of the country.
Now it looks like the Chinese company's "temporary general license" is set to be extended.
Huawei's blacklisting meant that they were barred from buying components needed for their existing phone models from the U.S.
However, the "temporary general license" has essentially lifted this ban for a short period, in order to allow U.S. companies to prepare for the ban to come into full effect.
Now, as Reuters reports, it looks like the U.S. is set to extend this grace period for a further 90 days. If it comes into effect, the extension will only apply to already existing deals and products.
As TechRadar reports, several American tech firms have been lobbying the US government to change its approach, as U.S. companies will lose significant revenue streams that relied on supplying Huawei. It seems their efforts may have paid off.
It's worth noting that the U.S. has never actually provided any evidence of Huawei's wrongdoing. The Chinese company, meanwhile, has repeatedly denied the accusations.
Huawei's plan B
The features of Huawei's next flagship phone, the Huawei Mate 30 Pro, depend on Trump's next course of action. The reprieve would mean the phone can be launched with Google's Android operating system installed.
As Forbes reports, the company has said that the phone launch will go ahead as planned even if the reprieve is not granted.
In the case that the reprieve does not come into effect, Huawei's operating software, called Harmony OS, would be installed as a replacement for Android.
On Sunday, the President told the press that he doesn't "want to do business at all [with Huawei] because it is a national security threat,” as CNBC report. “We’ll see what happens. I’m making a decision tomorrow,” he continued.
As per Reuters, Donald Trump and Chinese President Xi Jinping reportedly discussed Huawei in a call over the weekend.
The U.S. is likely to make an official announcement over the next few hours.