US delays Huawei licenses as China halts crop-buying
The tit-for-tat maneuvers by the U.S. and China this week concerning trade has taken another twist.
The White House is reportedly holding off on a decision about licenses for U.S. companies to restart business with Huawei Technologies. This comes after Beijing said it was halting purchases of U.S. farming goods, according to a Bloomberg report.
American businesses require a special license to supply goods to Huawei after the U.S. added the Chinese telecommunications giant to a trade blacklist in May over national-security concerns.
The delay in licensing shook technology stocks.
In May, President Trump signed an executive order that banned U.S. companies from using Huawei equipment; however, the administration lifted the ban at the beginning of July after Trump and Chinese President Xi Jinping agreed to a trade ceasefire at the G-20 summit in Osaka, Japan. Detailing the meeting in a series of tweets.
However, that promise was contingent upon China beefing up its purchases from American farmers, which Trump has complained the country has failed to do.
Tensions between the two countries increased recently when Trump said he would impose a 10 percent tariff on $300 billion of Chinese imports as of Sept. 1 and his Treasury Department formally labeled China a currency manipulator.
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The White House had no immediate comment, and the Commerce Department declined to comment. Huawei also declined to comment, according to Bloomberg.