The word on the street is that the deal could include China removing tariffs on imported US agricultural products, as well as buying more American farm goods.

For those who came in late, ZTE was hit by a seven-year ban in April which effectively crippled its operations and warned it could shut down as a result of the ban,

White House advisors have said previously the ban against ZTE is being reexamined, and that the firm would still face “harsh” punishment, including enforced changes of management and at board level.

One person told Reuters there was a “handshake deal” on ZTE between US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He during talks in Washington last week that would remove the ban in exchange for the purchase of more US agricultural products.

China may also eliminate tariffs on US agriculture products it assessed in response to US steel duties, and that ZTE could still be forced to replace its leadership, among other penalties.

Both sources said the deal was likely to be finalised before or during a planned trip by US Commerce Secretary Wilbur Ross to Beijing next week.

American companies provide an estimated 25 percent to 30 percent of components in ZTE’s equipment, which includes smartphones and gear to build telecommunications networks.