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

White House economic adviser Larry Kudlow on Sunday tamped down expectations of a quick resolution of the U.S.-China trade dispute, adding that President Trump's decision to let Chinese telecom giant Huawei buy some additional U.S. products is "not a general amnesty."

President Trump announced Saturday that U.S. suppliers will be allowed to sell components to Chinese telecom giant Huawei following talks with Chinese President Xi Jinping.

Trump declared relations with China were “right back on track” after he and Xi sought Saturday to de-escalate a prolonged trade war between the two economic powerhouses, also announcing that trade talks will resume and tariffs were on hold.

In addition, Trump eased restrictions on Huawei.

“U.S. companies can sell their equipment to Huawei,” Trump said at a news conference. “We’re talking about equipment where there’s no great national security problem with it.”

However, on “Fox News Sunday,” Kudlow, the director of the National Economic Council, said Trump's move does not mean the administration no longer regards Huawei as a surveillance agency of the Chinese Communist Party.

"This is not a general amnesty, if you will. Huawei will remain on the so-called Entity’s List, where there are serious export controls and in any national security instances or suggestions there won’t be any licenses but having said that I think that all that’s going to happen is the commerce department will grant some temporary additional licenses where there’s a general availability," he said.

In addition, the chronic, as well as acute nature of the trade tensions between the world's two biggest economic powers, means the White House will not be rushed into making a deal and negotiations will continue “for quite some time,” Kudlow said.

“No promises, no deal made, there’s no time table I want to emphasize that as the President said several times this is about the quality of the deal there’s no time table, there’s no rush,” he said.

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“It’s very important from the American side, the relationship with China has to be rebalanced. It has been very unbalanced in recent years,” Kudlow said. “As you know we’ve had tremendous problems with intellectual property theft, forced transfers of technology, tariffs, non-tariff barriers, various cyber hacking going on and other issues, ok. Those have to be remedied, that’s a very important point of these talks however long that may take it is impossible to predict.”