The US Department of Commerce is expected to offer a temporary reprieve to ZTE by lifting export curbs imposed on the vendor over alleged violation of Iran sanctions.
A senior official at the department told Reutersthat the relief will be on a temporary basis, and will only be maintained if ZTE is abiding by its commitments to the US government.
The agreement comes after a week of active discussions between ZTE and the department that culminated in the vendor making binding commitments to the government.
Earlier this month the Department placed export restrictionson US companies supplying components to ZTE. The notice stated that any company seeking to supply US-made equipment to ZTE would have to apply for a license, and that any such applications are likely to be rejected.
The restrictions relate to alleged efforts by ZTE to circumvent US sanctions on Iran by purchasing US products through front companies and shipping them to the nation.
ZTE is believed to rely on high-end US components for its smartphones and other parts of its supply chain. The company has stated that it strives to ensure that all operational activities adhere to the laws and regulations of host countries.