The back and forth of the saga of ZTE’s U.S. ban continues today.
The U.S. and China have agreed on a deal that would save ZTE, say sources speaking to the Wall Street Journal. The details of the deal are still being worked on, and it’s possible that the deal will fall apart.
According to today’s report, ZTE will be forced to make significant changes to its management and board seats and possibly pay large fines, too.
A separate report from Reuters says that a deal could include China removing tariffs on imported U.S. agricultural goods and agreeing to buy more American farm goods.
Last month, the U.S. Department of Commerce announced that ZTE would be banned from buying components from U.S. companies after failing to discipline employees as part of a settlement after it illegally shipped U.S. tech to Iran. ZTE ceased main business operations shortly after, but then President Trump announced that he was working with Chinese President Xi Jinping to get ZTE back into business. Days later, a House committee passed an amendment to prevent the Commerce Department from renegotiating sanctions on ZTE.
Following that House vote, the situation was beginning to look dire for ZTE, but now things may be turning around. Stay tuned for more as we get it.