U.S. and China reportedly close to undoing ban on ZTE
Are ZTE's troubles finally coming to an end?
ZTE's had a rough few weeks recently, but it would appear that the company may be due for some good news. According to two new reports, the United States and China are very close to finalizing a deal that would lift the Denial Order issued against ZTE.
According to sources that spoke with Reuters —
Washington neared a deal to lift its ban on U.S. firms supplying Chinese telecoms gear maker ZTE Corp, sources said on Tuesday [May, 22], and Beijing announced tariff cuts on car imports, further easing trade tensions between the world's two largest economies.
As part of this agreement, China would eliminate tariffs that are currently placed on goods imported from the United States, including agricultural products, and begin purchasing additional farm goods from the U.S.
Along with this, The Wall Street Journal also notes that –
The U.S. and China have agreed on the broad outline of a deal that would save imperiled Chinese telecom giant ZTE Corp., according to people with knowledge of the matter in both countries, as the two sides move closer to resolving their trade dispute.
While this deal would lift the Department of Commerce's Denial Order against the company, ZTE wouldn't be walking off scot-free. According to WSJ –
Instead, ZTE would be forced to make big changes in management, board seats and possibly pay significant fines, the people said.
Although the United States and China haven't officially agreed to the terms quite yet, it is encouraging to see that steps are being taken to dig ZTE out of its newfound grave. The House Appropriations Committee may try to fight whatever comes of this, but we'll have to wait and see what happens.