By Keith Zhai and David Shepardson
SINGAPORE / WASHINGTON (Reuters) ̵
The "temporary general license" will be extended to Huawei for 90 days, the sources said.
Commerce launched Huawei to buy some US-made goods in May shortly after blacklisting the company in a move aimed at minimizing disruptions to customers, many of whom operate networks in rural America.
An extension will renew an agreement that was set to expire on August 19, continuing the Chinese company's ability to maintain existing telecommunications networks and offer software updates to Huawei handsets.
The situation around the license, which has become a major bargaining chip for the United States in its trade negotiations with China remain fluid, and the decision to continue Huawei deferral may change ahead of Monday's deadline, the sources said.
U.S. President Donald Trump and China's President Xi Jinping are expected to discuss Huawei in a conversation this weekend, said one source.
Huawei did not have an immediate comment. China's foreign ministry did not immediately respond to a fax request for comment.
When the Department of Commerce blocked Huawei from buying US goods earlier this year, it was seen as a major escalation in the trade war between the world's two top economies.  The US government blacklisted Huawei alleging that the Chinese company is involved in activities contrary to national security or foreign policy interests.
As an example, the blacklisting order cited a criminal case pending against the company in federal court over allegations Huawei violated US sanctions on Iran. Huawei has pleaded guilty to the case.
The order noted that the indictment also accused Huawei of "deceptive and obstructive actions."
At the same time, the United States says Huawei smartphones and network equipment could be used by China to spy on Americans, accusing the company of repeatedly denying.
The world's largest telecommunications equipment manufacturer is still prohibited from purchasing US parts and components to manufacture new products without additional special licenses.
Many Huawei vendors have requested special licenses to sell to the company. Commerce Secretary Wilbur Ross told reporters late last month that he had received more than 50 applications and that he expected to receive more.
Out of $ 70 billion that Huawei spent on buying components in 2018, about $ 11 billion went to US companies including Qualcomm, Intel and Micron Technology.
The Department of Commerce declined to comment late on Friday, citing Ross's comments to CNBC television earlier this week stating that the existing licenses were in effect until Monday.
Asked if they would be expanded, he said, "Monday I would like to update you."
(Reporting by Keith Zhai in Singapore and David Shepardson in Washington; Editing by Chris Sanders and Muralikumar Anantharaman)