SHENZHEN, China—ZTE Corp. is nearing a deal with the U.S. to save its business, but the Chinese telecommunications giant faces more battles ahead to turn around its fortunes as losses pile up and aggrieved customers demand compensation for delayed projects.
On Monday, ZTE executives in Shenzhen signed a preliminary agreement that would allow it to resume buying parts from American suppliers and restart idle smartphone and telecom-equipment factories following an April ban imposed by the U.S. Commerce Department, according...