The U.S. Department of Commerce announced a ban on China’s ZTE a couple of weeks ago that effectively crippled the company. Among other products, ZTE makes Android-powered smartphones and primarily sources chips from Qualcomm. The company was banned from sourcing components from companies in the U.S. for 7 years which meant that not only could it no longer get processors from Qualcomm, it might have lost its Android license as well. Officials from both countries have been in discussions recently to try and find a way out for ZTE and it appears that the reprieve may be coming soon.
ZTE had recently announced that it has ceased core business operations following the ban and that it will continue trying to get the ban relaxed.
U.S. President Trump recently said that he was working with President Xi of China to get ZTE back into business quickly. Even though his plan was rejected by lawmakers in the U.S., it appears that the administration is moving forward with a deal to lift the crippling ban on ZTE.
Citing two people briefed on the matter, Reuters reports that Washington is going to lift the ban on ZTE as Chinese announced tariff cuts on car imports from the United States. This deal may also lead to the country removing tariffs on imported U.S. agricultural products and buying more American farm goods.
The two countries appear to be gradually walking back from the brink of an all-out trade war in the last few weeks so it’s likely that both will make some concessions in the process. There has been no formal announcement of a deal by the administration just yet.