Washington and Beijing are nearing a deal to lift the ban on sales of US components to Chinese telecoms group ZTE, removing a contentious issue that has highlighted the entangled commercial ties between the world’s two major economies.

A person briefed on the potential deal said the US department of commerce would allow ZTE to resume sourcing of American components in return for wholesale senior management changes and payment of another large fine. The proposed settlement was first reported by the Wall Street Journal.

The White House’s attempt to rescue ZTE, just weeks after US sanctions nearly destroyed the company, come as part of a broader move by the Trump administration to de-escalate trade tensions with Beijing after threatening tariffs on $150bn in Chinese imports.