The White House has delayed a full-scale trade ban on Huawei several times, most recently granting the company another 90-day export license on 19 August.
In a bid to ease tensions between the United States and China, the Trump administration is looking to issue licenses that would allow some US-based companies to supply nonsensitive hardware to the Huawei, The New York Times reported, citing sources.
According to the media report, the move could help in striking an anticipated trade deal between Washington and Beijing, as both countries are engaged in the next round of negotiations this week in DC.
Earlier, several countries accused Huawei of being sponsored by the Chinese government and spying on its behalf through its devices. Last year, Australia, Japan, New Zealand and the United States banned the company from participating in government contracts due to security concerns. Huawei refuted the accusations.
The Huawei issue is tightly interlaced with the ongoing trade war. The two countries have exchanged several rounds of tariffs on billions of dollars of imports and have not yet overcome their differences in multiple trade negotiations.
The South China Morning Post reported earlier, citing sources, that deputy-level discussions held on Monday and Tuesday in DC did not result in progress on critical issues.