U.S., China Edge Toward Trade Resolution

Wall Street Journal, May 22, 2018
by Lingling Wei and Bob Davis

The U.S. and China are moving closer toward resolving their trade dispute, with the two sides agreeing on the broad outlines of a reprieve for embattled Chinese telecom giant ZTE Corp. and Beijing easing tariffs on imported cars.

The two sides had declared a truce this weekend, accompanied by a pledge from China to buy more U.S. farm products, energy and services.

For ZTE, China’s second-largest telecom-equipment maker and the fourth-largest vendor of mobile phones in the U.S., negotiators are figuring out a plan to save it from extinction, according to people familiar with the matter in both countries.

ZTE relies on U.S. suppliers like Qualcomm Inc. for key components, and the proposed deal would lift the Trump administration ban on sales to the Chinese company, according to the people. ZTE would be forced to shake up its management and possibly pay significant fines, they said.

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