Published: Thu, June 14, 2018
Global | By Shelia Dennis

White House to block Congress from stopping ZTE deal

White House to block Congress from stopping ZTE deal

The telecom company is considered by the intelligence community to be a mechanism for espionage by, in part, selling phones in the US that can be tracked and enabled to steal intellectual property.

The current Senate bill "would trample on the separation of powers and undercut the Trump administration's authority to impose these penalties", Perdue said. Google vows it won't use AI for weapons MORE (Md.) objected to Perdue's request, paving the way for the provision blocking Trump's ZTE deal to remain in the defense bill.

U.S. President Donald Trump's Republican allies in Congress are moving to block his deal to put Chinese telecom giant ZTE back in business if it pays $1 billion more in fines for violating U.S. sanctions against Iran. After violating sanctions in Iran, ZTE was banned from buying parts and components from all American companies. Reuters on Tuesday revealed that ZTE had signed a preliminary agreement with the Commerce Department.

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"The fact that a bipartisan group of senators came together this quickly is a testament to how bad the Trump administration's ZTE deal is and how we will not shy away from holding the president's feet to the fire when it comes to keeping his promise to be tough on China", Schumer said. Among other things, it would restore penalties on ZTE for violating USA export controls and bar US government agencies from purchasing or leasing equipment or services from the Chinese company. After 10 years, if there are no violations, the $400 million will be returned to ZTE.

USA lawmakers have attacked Washington's agreement with ZTE and plan legislation to roll it back, citing intelligence warnings that ZTE poses a national security threat.

The amendment will be voted on in the Senate this week, and if it passes, will need to be reconciled with the House version of the bill that passed in May.

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The U.S. Commerce Department can exercise discretion in granting exceptions.

"The compliance monitor will be on the same level as ZTE's CEO and board on compliance matters".

A bipartisan group of United States senators has put a renewed ban on both ZTE and Huawei into an amendment to the 2019 National Defense Authorization Act. ZTE is not allowed to take any action or make any public statement, even indirectly, denying any of the allegations.

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