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The Trump Administration and Beijing are close to inking a deal which would potentially restart ZTE's crippled business.
According to sources speaking to Reuters[1], the governments are currently finalizing an agreement which would remove an existing US export order which has sent ZTE's fortunes into a downward spiral.
ZTE was hit with a ban by the US Commerce Department which prevented US companies[2] from selling hardware and equipment to the telecommunications giant for seven years.
The export restrictions were imposed after it was alleged that ZTE lied to the Bureau of Industry and Security (BIS) in relation to the discipline of senior staff apparently involved in illegal trade deals with to Iran and North Korea.
Instead of disciplinary measures, ZTE allegedly awarded these executives large bonuses for their participation.
Last year, ZTE agreed to a penalty and forfeiture of $1.19 billion over the scandal, but it was not until the trade ban was enforced that the company's business truly suffered.
The ban[3] prevents the firm from "participating in any way in any transaction" under the US government's Export Administration Regulations.
Following the restrictions, ZTE lashed out, claiming the export ban[4] was "unacceptable" and the firm vowed to fight the decision. However, the decree took its toll quickly and the business was eventually forced to announce that it was ceasing all major operating activities[5] (.PDF).
"As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations subject to compliance with laws and regulations," ZTE said. "The company and related parties are actively communicating with the relevant US government departments