U.S. Said to Be Finalizing Deal to Help Revive ZTE

The Trump administration is putting the finishing touches on a deal with ZTE that would allow the Chinese company to resume purchases from its American suppliers, according to Bloomberg, citing people familiar with the matter.

U.S. and Chinese officials are still finalizing the details and any deal could still fall apart, according to one of the people, who spoke on condition of anonymity. Reuters earlier reported that ZTE has signed an agreement in principle that would allow the crippled company to resume operations. A U.S. Commerce Department spokesman said no definitive deal has been signed by the two parties.

Trump has said U.S. technology companies have been hurt by the sanctions. ZTE depends on U.S. components, including Qualcomm chips, to build its smartphones and networking equipment. His softening drew immediate resistance from both Republican and Democratic members of Congress, who are pressing for stiffer restrictions on ZTE and even considering action to block Trump from reversing the sales ban.

The news that a deal was close sparked a renewed outcry from lawmakers. If the reports are true, Trump “has put China, not the United States, first,“ Senate Minority Leader Chuck Schumer said on Twitter. “By letting ZTE off the hook, the president who roared like a lion is governing like a lamb when it comes to China. Congress should move in a bipartisan fashion to block this deal right away.“