This deal - the second time President Trump gave in to China's demands and ended restrictions on a major Chinese technology company that had been accused of threatening USA national interests - effectively marks the end of Trump's trade war with China.
The US president signed an executive order in May this year, banning any US company to do business with the Chinese phone and IT hardware manufacturer.
Initially, reports from the G20 summit confirmed that Trump had said "US companies can sell their equipment to Huawei". "I'm talking about equipment where there is no great national emergency problem with it".
Several U.S. companies stopped supplying Huawei in recent weeks, but quietly lobbied the U.S. government to ease the ban, Reuters reported last month. It seems more licenses will be granted to USA companies in the near future, and Kudlow suggested the products being sold to Huawei will be those that are widely available elsewhere.
Republican Senator Marc Rubio, has warned that if the sanctions are removed on Huawei, then they will fight it in the US House of Congress.
Jacob Parker, vice-president of China operations at the U.S. However, the ban from the Export list will over products that concern the national security.
President Trump said he believes that the United States and China are closer to a trade agreement after his meeting in Japan with Chinese President Xi Jinping. He also said Beijing agreed to buy an unspecified amount of USA agricultural products.
It seems the answer could come soon, as Trump stated the Huawei situation will be a subject discussed with China during the newly-resumed trade talks.
But Mr Trump said the company's future would not be decided until the end of the trade talks.
"If President Trump backs off, as it appears he is doing, it will dramatically undercut our ability to change China's unfair trades practices."He wants to make a deal.
American firms were also spooked when Chinese government officials called them in for meetings and threatened to add them to the list if they don't make sure the US eases up on its ban, people briefed on the meetings said. And its full outcome will not be seen until the last deal.
One of the demands coming from the American side is for better treatment of its companies in China, CNBC said in a separate story. The relationship with China has to be rebalanced.
Washington has accused Beijing of massive state intervention in markets as well as the forced transfer and outright theft of American technological know-how. Those have to be remedied. "However long that may take is impossible to predict".