U.S., China Agree on Outline to Settle ZTE Controversy

Deal would lift the sales ban on ZTE and require the Chinese telecom giant to make significant changes to its management and board

The U.S. and China have agreed on the broad outline of a deal to settle the controversy over Chinese telecom giant ZTE Corp., according to people with knowledge of the matter in both countries, as the two sides work toward an agreement to ease trade tensions.

The details are still being hammered out, the people said. If completed, the Trump administration would remove the ban on U.S. companies selling components and software to ZTE, a penalty that has threatened to put the company out of business. Instead, ZTE would be forced...