US reportedly working with China on a deal to ‘save’ ZTE from going out of business

ZTE has been in a really tough spot for the past few weeks, but things are starting to look up, at least a little bit. According to multiple reports, the US is currently working on a deal with China to potentially prevent ZTE from going out of business.

Recapping the situation ZTE is currently in, the company was handed an export ban last month as the result of not following the terms of a court case from years ago. That resulted in ZTE later shutting down major operations with the company’s future largely unclear.

President Donald Trump later said that he was working with the Chinese government on a solution to save ZTE, but that didn’t work out. Now, though, multiple reports claim that the US is working to give ZTE a way out.

According to the Wall Street Journal, this new deal would effectively lift the export ban ZTE is facing, enabling the company to once again use components such as Qualcomm chipsets. With the deal, though, ZTE would still face huge consequences.

Reuters mentions that any deal would likely result in board changes and huge fines, although nothing is known just yet. Apparently, China has offered to remove tariffs that currently impact US farming products. Negotiations are currently behind closed doors, so it’s unlikely we’ll learn much more about this deal before it is settled.

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