- The U.S. and China have reportedly agreed on a “broad” plan to resolve ZTE’s woes.
- If confirmed, the agreement would see the U.S. lift a supply ban against ZTE.
- It’s believed that negotiations are ongoing and that there was no guarantee of a deal materializing.
The U.S. and China have reportedly agreed on a “broad outline” to resolve Chinese mobile company ZTE’s troubles.
According to CNBC, the agreement would see the U.S. supply ban lifted against the company as well.
BREAKING: US and China agree on broad outline to resolve ZTE issue, which would include removing the US sales ban to keep it in business – Dow Joneshttps://t.co/jn8limUSe7
— CNBC Now (@CNBCnow) May 22, 2018
Reuters reported the new deal could include China removing import tariffs on U.S. agricultural products while also buying more of them. According to the Wall Street Journal, Beijing had offered to remove the tariffs.
The Journal added that the deal is still being hammered out and there’s no guarantee it would be finalized. According to the publication, ZTE may be required to pay “significant” fines and make changes to its executive team and board seats in exchange to the lifting of the ban.
The White House insists that the matter is an issue of law, rather than a bargaining chip in the trade spat between Washington and Beijing, a source told the publication.
News of the deal comes a few days after the U.S. House Appropriations Committee approved an amendment to uphold the supply ban against the Chinese brand.
ZTE was slapped with a supply ban by the U.S. after it violated sanctions against Iran. The ban deprived the brand of key smartphone components, including mobile chips from U.S. chip designer Qualcomm.
The mobile manufacturer was also facing the loss of its Google Mobile Services (GMS) license. Google grants qualifying mobile brands a license to GMS, which is Google’s suite of popular apps and APIs that are preinstalled on millions of smartphones.
The Chinese manufacturer has already been feeling the pinch after the supply ban, having stopped “major operating activities” two weeks ago.