Senate Minority Leader Charles Schumer (D-N.Y.) says that China's president "played" President Trump Donald John TrumpOmar fires back at Trump over rally remarks: 'This is my country' Pelosi: Trump hurrying to fill SCOTUS seat so he can repeal ObamaCare Trump mocks Biden appearance, mask use ahead of first debate MORE in recent bilateral trade talks where the countries reportedly agreed to an informal deal to lift sanctions from Chinese phone manufacturer ZTE, The Wall Street Journal reported.

Sources familiar with the talks told the Journal that the deal, which is still being negotiated, would include the administration removing the current ban on U.S. companies selling phone components to ZTE.

"If these reports are true, the fines and board changes will do nothing to protect American national or economic security and are simply a diversion from the fact that we have lost," Schumer said in a statement. "President Xi has played President Trump and Secretary Mnuchin."

SCHUMER stmt on reported ZTE deal: “President Xi has played President Trump and Secretary Mnuchin.” pic.twitter.com/owbWkJTemr — Frank Thorp V (@frankthorp) May 22, 2018

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Treasury Secretary Steven Mnuchin Steven Terner MnuchinOn The Money: Powell, Mnuchin stress limits of emergency loans | House seeks to salvage vote on spending bill | Economists tell lawmakers: Kill the virus to heal the economy Economists spanning spectrum say recovery depends on containing virus Powell, Mnuchin stress limits of current emergency lending programs MORE, a key negotiator in the talks, recently defended Trump for saying he wanted to get ZTE "back into business, fast."

Trump also defended his interest in removing sanctions from ZTE, noting in a tweet that "the large Chinese phone company buys a big percentage of individual parts from U.S. companies."

The ban on the company, which came after the Commerce Department said ZTE sold products to North Korea and Iran, came amid fears by U.S. intelligence and defense officials that the Chinese government could be using the company's devices for spying.

The Journal said ZTE would be forced to make organization and management changes, as well as pay fines, in the deal under negotiation. China has also offered to remove tariffs on U.S. farm products in return, according to the report.

In a recent letter sent to Trump, nearly three dozen Senate Democrats called Trump's negotiations a "bad deal for American workers," saying it put Chinese jobs above American national security interests.