Some employees have apparently already been notified that they will be let go, with other layoffs planned in the near future.
'Chinese telecom companies like Huawei effectively serve as an intelligence-gathering arm of the Chinese Communist Party, ' Senator Tom Cotton said after the order was issued back in May.
Some of the company's Chinese employees were given the option of keeping their jobs and returning home to work.
Huawei, the world's largest telecommunications equipment maker, was added to a Commerce Department list in May that prohibits USA companies from supplying it with new American-made goods and services unless they obtain licenses that will likely be denied.
The news from Huawei comes as Trump is under increasing pressure from U.S. workers who are increasingly discontented with the fall-out from the trade war. Some U.S. chipmakers sales to Huawei may not need licenses because their products could be beyond the scope of United States export controls since many are manufactured overseas with few USA components.
Some positive news that came from over the weekend from Reuters reporting that the USA may approve licenses for companies to re-start new sales to Huawei in as little as two weeks should help to restore some faith into the trade talks this week.More news: New Zealand holds first gun buyback event in wake of Christchurch shooting
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However late final month, after assembly with Chinese language president Xi Jinping, President Donald Trump introduced American companies might promote merchandise to Huawei.
In response to the United States restricting Huawei from certain infrastructure and software that it needs for its products through the USA blacklist, China has placed U.S. companies on its own "unreliable entities" list.
Furthermore, not all U.S. sales to Huawei hinge on government approvals of license requests.
One producer's consultant was informed by the senior US official that licenses may very well be granted in two to 4 weeks on the convention on Thursday.
Huawei founder and CEO Ren Zhengfei estimated last month the tech company's revenue will be $30 billion less than forecast over the next two years due to the US government's ban and ongoing trade dispute with China.