US officials have issued a 90-day reprieve on their ban on dealing with Chinese tech giant Huawei.
Rather than an all out ban, there is now a temporary license to allow Huawei continue doing business with some American firms.
The exemption is limited to maintaining existing services, and other exports will still "require a special license granted after a review... under a presumption of denial".
It comes in the wake of reports yesterday that Google had blocked the Chinese telecoms firm from using critical apps and services like Gmail and YouTube on its range of smartphones.
Huawei relies on the Google-developed Android operating system for its mobile devices.
The reprieve means Google will be able to continue to support Huawei for now.
Meanwhile, Huawei CEO Ren Zhengfei claimed the US had "underestimated" the company.
In comments quoted by the South China Morning Post, he said rivals firms cannot catch up with his company for at least two to three years.
He also suggested the restrictions won't impact their 5G plans.
Huawei has previously indicated it has prepared for US restrictions by developing its own operating system.
National emergency
US President Donald Trump declared a national emergency on national security grounds last week.
President Trump claimed there were "threats to the information and communications technology and services supply chain by foreign adversaries".
While Huawei was not directly named in the order, it was a main target.
US officials have repeatedly raised spying concerns about the Chinese company, which the company denies.
The Trump administration has also claimed it is investigating alleged violations of sanctions on Iran by Huawei.
In a statement, the US Commerce Secretary confirmed there'd be a temporary reprieve for some businesses dealing with Huawei.
He said: "The Temporary General License grants operators time to make other arrangements and the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services.
"In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks."
Figures released earlier this month suggested that Huawei had overtaken Apple and was now only behind Samsung in global smartphone sales, with 59.1 million shipments in the first quarter of 2019.
