Trade negotiations are at standstill as Washington weighs how much business with telecom-equipment giant to allow.

The United States looks set to break a promise not to hold military exercises with South Korea, putting talks aimed at getting North Korea to abandon its nuclear weapons at risk, the North Korean Foreign Ministry said on Tuesday.

Gross domestic product growth weakened to lowest since 1990s. Factory output, retail sales beat expectations in June.

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.

Top American and China negotiators are set to speak this week but disagreements threaten to bog down discussions.

State Department has approved the possible sale of M1A2T Abrams tanks, Stinger missiles and related equipment at an estimated value of $2.2 billion.

China and the rest of the world must co-exist, Vice President Wang Qishan said on Monday, in an indirect jab at the United States, with which Beijing is trying to resolve a bitter trade war.

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.