Licenses would allow U.S. suppliers to resume sales to blacklisted Chinese firm.

U.S. and Chinese trade officials held a “constructive” phone conversation on Tuesday, White House economic adviser Larry Kudlow said, marking a new round of talks after the world’s two largest economies agreed to a truce in a year-long trade war.

The U.S. government will issue licenses to companies seeking to sell goods to China’s Huawei where there is no threat to national security.

“We must have this market. You can’t produce another China, at least not overnight.”

The U.S. government filed a motion on Wednesday asking for the dismissal of a lawsuit by Chinese telecommunications giant Huawei Technologies Co Ltd that claimed the United States had acted illegally when it blacklisted Huawei’s products.

Trade deficit in goods and services jumped 8.4% in May from a month earlier.

Top representatives from the United States and China are arranging to resume talks next week to try to resolve a year-long trade war between the world’s two largest economies, Trump administration officials said on Wednesday.

Trump’s easing up on entity list comes after lobbying campaign. American firms say current restrictions harm national security

A senior U.S. official this week told the Commerce Department’s enforcement staff that China’s Huawei should still be treated as blacklisted, days after U.S. President Donald Trump sowed confusion with a vow to ease a ban on selling to the firm.