Ren Zhengfei, CEO of Huawei, talking with CNBC at Huawei's headquarters in Shenzhen, China.
Justin Solomon | CNBC
President Trump softened his stance on Huawei this weekend and told attendees at the G20 economics summit in Osaka that US technology companies could resell their components and software to Huawei, despite its earlier comprehensive ban on the Chinese hardware manufacturer.
Chip stocks, including Qualcomm and Broadcom, rose sharply on Monday morning news but returned in the afternoon.
The Department of the White House and Commerce has yet to clarify whether the policy will affect the use of Google's Android operation through Huawei's system on many mobile devices or Microsoft Windows operating systems on computers.
A Microsoft spokesperson, however, said the company had made "a first evaluation" of the Huawei's trade decision and will "continue to offer Microsoft software updates to customers using Huawei devices."
"We provide customers Huawei laptops continue to receive Windows software updates, "the spokesman said. [1
Huawei will remain on a list of companies banned from doing business, Larry Kudlow said on Sunday Licenses for sale to the company will be restricted if the US has national security concerns.
A New Negotiating Chip
Trump also pointed out that trade talks were one way Huawei could potentially ease further restrictions on the American market.
The question of whether Huawei should be treated primarily as a national security issue or as an economic factor continues to lead to disagreements in Washington.
Legislators such as Republican Senator Marco Rubio and Democratic Senator Mark Warner have warned the White House not to mix the country's concerns about Huawei with its economic policies. In response to the return, Rubio also introduced laws to tighten Huawei's total ban.
Members of the intelligence community who long argued for Huawei's close relationship with Beijing made it impossible for the company to deliver technology infrastructure in the US The US was also skeptical about making concessions to the company under an economic agreement.
Other organizations, including trade and industry associations supporting the semiconductor industry in the US, continue to argue for further easing of regulations.
The Semiconductor Industry Association announced last week that "there remains concern that limiting our ability to sell commercial products in key markets will impact the competitiveness of the US semiconductor industry," said the latest developments optimistic.
The Separation This could lead Huawei to a very long way to wider participation in the US market, which could drag on even longer Han the US trade negotiations with China.
"Trump is trying to get a deal out of China, and Huawei has become a negotiator," said Brian Finch, a public affairs and cybersecurity partner at Pillsbury Winthrop Shaw Pittman.
"However, most security experts believe that Huawei's products are problematic, and regardless of the agreement – even if it contains security restrictions – it is likely to be reviewed in another administration or questioned by Congress, if Huawei can not prove that it is not a security threat. " Finch. "However, this burden lies with Huawei and it is difficult to carry."
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