U.S. companies will soon be able to supply non-sensitive goods to China's Huawei.
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The Trump administration will be issuing those licenses, according to the New York Times.
It is seen as a move that could cool tensions as high-level officials from the U.S. and China meet this week to resume trade talks.
Huawei Technologies, the world's biggest telecoms gear maker, is on a U.S. trade blacklist since May.
The United States says the company can spy on customers, which Huawei denies.
Putting Huawei on that blacklist prevents the company from buying parts and components from U.S. companies without U.S. government approval.
On Monday, the U.S. added another 28 Chinese entities to the blacklist.
U.S. companies can seek a license for specific products to be exempted from the ban. The U.S. Commerce Department has received more than 130 applications from companies for licenses to sell U.S. goods to Huawei, Reuters reported in August.
Last week, Trump gave the go ahead to begin approving the licenses.