Trump says Huawei can purchase from American suppliers

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

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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.

“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.”

Last month Chinese tech giant Huawei was placed on a blacklist that effectively bars U.S. companies from supplying it with computer chips, software and other components without government approval. Several firms, including Facebook, Google and Panasonic, have since cut business ties with Huawei. The Trump administration has previously said Huawei is a national security issue, not a trade problem.

Trump told reporters he and Xi spoke about Huawei during their meeting.

“I said that’s O.K., that we will keep selling that product, these are American companies that make these products. That’s very complex, by the way,” Trump said, according to Bloomberg. “I’ve agreed to allow them to continue to sell that product so that American companies will continue.”

The commander in chief said the U.S. will hold talks soon to discuss Huawei's future.

The meeting took place on the sidelines of the G20 summit in Osaka, Japan. The two leaders agreed to a new cease-fire in a yearlong trade war, adding that stalled trade talks would resume and the U.S. would hold off on threatened additional tariffs on Chinese goods, according to Chinese state-run news agency Xinhua. Trump has threatened to impose tariffs on an additional $300 billion in Chinese imports — on top of the $250 billion in goods he's already taxed — extending his import taxes to virtually everything China ships to the United States. China retaliated by increasing tariffs on $60 billion worth of American products.

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In response to Trump holding off on tariffs, China said it will purchase a large number of products from American farms, Trump said.

Fox Business’ Katherine Lam and The Associated Press contributed to this report.