ZTE in jeopardy again as Senate defies Trump with potential new ban – CNET


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ZTE in jeopardy again as Senate defies Trump with potential new ban

A face-off with the president could be brewing.

CHINA-US-TELECOMMUNICATION-ZTE

Back in business. Or not.

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Senate Democrats and Republicans don’t often work together. But they’re joining forces to undo a deal that saves Chinese smartphone maker ZTE.

Senators plan to add a provision in the National Defense Authorization Act (NDAA), an annual defense policy bill they’re expecting to pass this week, that will ban US suppliers from selling to ZTE, reported The Wall Street Journal.

The amendment will also ban government agencies from trading telecommunications equipment and services with Chinese telecom companies ZTE and Huawei, as well as from providing loans to or subsidizing either company, according to The Hill.

The Senate’s moves represent a sweeping rebuke of President Donald Trump’s push to negotiate a settlement with ZTE, which went against the Commerce Department’s initial ban. Senators on both sides of the aisle criticized Trump for calling on the Commerce Department to reverse its position, with many saying ZTE poses a risk to US national security.

The bill is just a few steps away from reaching the White House. If it survives a conference committee in the House, that would lead to a face-off with Trump, who has to sign it.

The Senate didn’t drag its feet in its effort to revoke. Trump’s administration struck a deal with ZTE last Thursday, which allowed the company to continue buying components from the US, under supervision, with a $1 billion fine. The Commerce Department ban arose from a controversy in which ZTE failed to punish employees who were involved in illegally shipping US equipment to Iran and North Korea.

The White House didn’t immediately respond to a request for comment.

It’s unclear how a showdown would play out, but ZTE said Tuesday that it will resume trading shares Wednesday, ending a two-month suspension.

ZTE didn’t immediately respond to a request for comment.

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