What was quickly devolving into a dark situation for ZTE may finally have a light at the end of the tunnel.
A quick refresher: In April, the U.S. Department of Commerce announced that it had leveled a ban on U.S. companies exporting goods to ZTE. A little less than a month later ZTE announced that it would be ceasing its main business operations. The President of the United States tweeted that he was working with Chinese President Xi to get ZTE “back into business”, but soon after that a U.S. House Committee ruled unanimously to keep the Commerce Department from renegotiating sanctions against ZTE.
But, here we are and it’s a new day, so things are still evolving. According to The Wall Street Journal, the United States and China governments are working together on a deal that would ultimately save ZTE from its current predicament, in which the company is currently facing an export ban that prevents it from getting equipment for its smartphones.
The particulars of the deal remain unknown at this point, and the report indicates that it is possible it all falls apart before anything is finalized. However, it is expected that ZTE may have to make drastic changes to its board and that there may be lofty fines levied against it as well.
Meanwhile, a corroborating report from Reuters suggests that China may need to buy more farm products from America and the country may have to lift tariffs on imported U.S. agricultural goods.
So while things may have been dire for ZTE just a week ago, it looks like it’s still possible things may work out in the company’s favor after all.