U.S. President Donald Trump said on Tuesday that no deal had been reached yet on ZTE Corp.
The Chinese telecommunication giant shut down most of its production after the U.S. banned American companies from supplying to it for seven years.
Earlier on Tuesday Wall Street Journal and Reuters reported that the two sides were near a deal to remove the ban.
Trump floated a plan to fine ZTE Corp and shake up its management as his administration considered rolling back more severe penalties that have crippled the Chinese telecommunications company.
Speaking at the White House, Trump said U.S. technology companies have been hurt by an April Commerce Department decision that prohibits them from selling components to China's second-largest telecommunications equipment maker. ZTE shut down most of its production after the ruling was announced.