President Donald Trump’s administration is working on details of a deal with the Chinese, and may lift a ban on U.S. companies selling hardware and software to Chinese corporate ZTE if it works out, the Wall Street Journal reported late on Monday.
In exchange for Trump’s removal of the ban, ZTE will make major changes in management, board seats and potentially pay fines, according to the Journal. Details of the deal are still being worked out, it added.
The move is part of a tentative deal between Washington and Beijing to settle tensions over ZTE after the U.S. Commerce Department banned American businesses from selling to the Shenzhen-based firm for seven years.
That penalty was widely expected to bankrupt the telecom heavyweight, which pleaded guilty in March to illegally shipping U.S. goods to Iran and North Korea in violation of American sanctions.
Chinese President Xi Jinping’s government has also offered to remove tariffs on U.S. farm products as part of negotiations, the WSJ added.
The news may raise concerns that the White House is using the ZTE case as a bargaining chip in its ongoing trade discussions with Beijing, but one of WSJ’s sources said that was not the case.
The White House did not respond to CNBC’s request for comment, which was sent outside office hours.
