No 'amnesty' for Huawei, despite Trump easing some restrictions

President Donald Trump's decision to allow United States companies to sell parts to Huawei is a climbdown in his policies toward China, but doesn't exclude the firm from the US' blacklist, White House economic adviser Larry Kudlow said.

Kudlow told Fox News Sunday and CBS' Face the Nation that Huawei will remain on an American blacklist as a potential security threat.

The aide pointed out that the chronic nature of the trade spat between the two top economies means the USA administration will by no means leap in a rush at any concrete deal but will continue negotiations "for quite some time", Kudlow rounded off. "US companies can sell their equipment to Huawei", he told reporters, providing that equipment poses no "great national emergency problem". This not a general amnesty ...

The partial lifting of restrictions on Huawei was a key element of the agreement reached over the weekend between President Donald Trump and Chinese President Xi Jinping to reopen stalled trade negotiations between the two countries.

"The move has since attracted criticism from U.S. Senators, with Republican Senator Lindsay Graham saying on Sunday that there will be a lot of pushback if Huawei is given too many concession".

"What's happening now is simply a loosening up for general merchandise", Kudlow said. "If President Trump has in fact bargained away the recent restrictions on Huawei, then we will have to get those restrictions put back in place through legislation", tweeted Senator Marco Rubio (R-Florida).

Lindsey Graham of SC, a key ally of the president, told CBS' Face the Nation the agreement was "clearly a concession" and also said it would be a mistake if sales to Huawei involved "major technology".

The National Economic Council director said he's hoping to assuage concerns raised by Rubio and other member of Congress and make it clear that confronting national security concerns about Huawei remains an integral part of the USA strategy towards a growing Chinese economy.

American officials accuse Huawei of facilitating Chinese spying, a charge the company denies, and see it as a growing competitive threat to USA technology industries. The incident has set off a deepening diplomatic row between China and Canada. He said smartphone sales outside China will fall 40 per cent.

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