US President Donald Trump said on Tuesday that no deal had been reached yet on ZTE Corp.
The US denial order announced in April that bans US companies from selling parts and software to ZTE for seven years has threatened to put the Chinese telecommunication giant out of business.
On Monday, Wall Street Journal and Reuters reported that the two sides were near a deal to remove the ban.
Trump said ZTE might instead face a fine of up to 1.3 billion US dollars, new management and a new board of directors, as his administration considered rolling back the ban.
Speaking at the White House, Trump said the denial order has also hurt US technology companies.
When addressing a question about ZTE on Tuesday, China’s foreign ministry spokesman Lu Kang said the US would send a high-level delegation to China to discuss the issues.
Chinese President Xi Jinping's special envoy and Vice Premier Liu He recently finished his trip to Washington, DC. They were there for China-US trade talks and described the visit as “constructive, positive and fruitful.”