The U.S. and China are working on a deal that will ease U.S. sanctions on China's ZTE Corp. in exchange for Beijing holding back tariffs on U.S. agricultural products announced in April, The Wall Street Journal reported May 14, citing people in both countries briefed on the deal.
ZTE was dealt a crippling blow after the Trump administration barred U.S. companies from supplying components to the Chinese telecom gear maker in April. The ban would hit China's three large Chinese telecom carriers as well, the publication reported.
China is also expected to ease some non-tariff restrictions on U.S. farm products such as stringent testing on U.S. soybeans. Futures for soybeans and other agricultural commodities gained on the Journal's May 14 report of a possible deal. July-dated soybean futures rose 1.5% to $10.1775 a bushel at the Chicago Board of Trade on May 14, the Journal said.
China is also seen to ease its regulatory reviews of a number of deals involving U.S. companies, including Qualcomm Inc.'s bid for NXP Semiconductors NV, the Journal said.
China's Commerce Ministry has pledged to immediately restart its review of the acquisition, the paper reported, citing a person close to the ministry.
Liu He, China's top economic adviser, is expected to arrive in Washington on May 15 for talks through May 19. Foreign Ministry spokesman Lu Kang May 14 said "the two sides will work together for positive and constructive outcomes for the upcoming consultations."
