This archive report was first published on 29 June 2019.
US President Donald Trump's comments on Huawei have sparked speculation about a potential softening of the US stance on the Chinese tech giant.
Speaking in Osaka on June 29, 2019, Trump said that US companies can sell their equipment to Huawei, citing no great national security problem with it.
However, the US has essentially barred Huawei from accessing crucial American technology or operating in the US market, citing fears that Huawei's systems could be used by China's government for espionage.
Huawei has vigorously denied these allegations, stating that the US has never provided proof to substantiate them.
Trump's comments come after the US government added Huawei to an 'entity list' of companies barred from receiving US-made components without permission from Washington.
While Trump's comment on its face does not mark a change from current practice, it could be read by financial markets as a positive signal that his administration may be open to negotiating on Huawei when bilateral trade talks resume.
However, any softening on Huawei could meet resistance from a bipartisan US congressional movement that is calling for a hardline on the firm.
