Senators may block Trump’s ZTE deal whether he likes it or not
13 June, 2018, 19:40 | Author: Myra Gill
Dealing in the firm was suspended in April after USA authorities banned American businesses from trading with ZTE for 7 years due to alleged violations of the trade sanctions against Pyongyang and Tehran by the staff, which the Chinese corporation didn't punish.
White House trade adviser Peter Navarro said on Sunday that President Donald Trump agreed to lift the ban as a personal favour to the president of China.
White House trade adviser Peter Navarro on Sunday likened the deal to "three strikes you're out", referring to two prior violations ZTE committed under the sanctions agreement with the U.S.
ZTE Corp's (000063.SZ) settlement with the U.S. Commerce Department that would allow China's No. 2 telecommunications equipment maker to resume business with U.S. suppliers was made public on Monday, days after the company agreed to pay a $1 billion fine, overhaul its leadership and meet other conditions.
An amendment sponsored by Sens.
Chris Van Hollen of Maryland, a liberal Democrat - shows how determined Congress is to block Mr. Trump.
Sen. Cotton explained on Twitter that ZTE has extensive ties with the Chinese Communist Party and a record of doing business with North Korean and Iran.
Visitors pass in front of the Chinese telecom giant ZTE booth February 26 at the Mobile World Congress in Barcelona.
But Trump then announced in mid-May that he was working with Chinese President Xi Jinping to find a way to get ZTE back into business.
The White House didn't immediately respond to a request for comment.
The Senate's move comes less than a week after the administration struck an agreement with ZTE that would have kept the telecom company engaged in the USA market. In early June, the White House announced ZTE would be able to resume buying US parts after it agreed to pay a $1 billion fine and submit to USA oversight.
The administration said it was still a stiff penalty, describing it as the largest sanctions settlement in history. Marco Rubio (R-Fla.), another chief backer of the amendment. The Commerce Department placed additional sanctions on the company after it failed to follow through with its reorganization plan and lied to the US government about it.
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