The companies have come up with an outline of a plan that would allow the ban on U.S. companies selling components and software to ZTE to be lifted, reports the Wall Street Journal. The ban is threatening to put the Chinese phone maker out of business. Now sources say the U.S. and China have agreed on the broad outline of a deal to ditch the ban. While details are still being discussed, the outline includes:
- forcing ZTE to make changes in management and at the board level
- having ZTE pay significant fines
- the removal of tariffs by Beijing on billions of dollars of U.S. farm products
The Commerce Department banned U.S. companies last month from selling to ZTE because it failed to comply with its agreement with the U.S. government for violating sanctions against trade with North Korea and Iran.