Weeks earlier, the Commerce Department had banned U.S. companies from selling to ZTE as punishment for the Chinese firm’s failure to honor an earlier U.S. agreement to resolve its sanctions-busting sales to North Korea and Iran. Because ZTE relies on U.S. suppliers to make its smartphones and to build telecommunications networks, the Commerce penalty was effectively a death knell.
Mr. Trump’s tweet calling for the penalty to be rolled back angered a large, bipartisan group in Congress, along with intelligence and military officials, who swiftly denounced any prospect of a reprieve.
Regardless, the Commerce Department struck a new deal with ZTE on June 7 as instructed by Mr. Trump. It allows ZTE to resume buying from U.S. suppliers but requires it to pay a
$1 billion fine, replace its board of directors and senior leadership team and fund a team of U.S. compliance officers to monitor the company for 10 years.
Though the penalties in the new deal are stiff, they aren’t sufficient in the eyes of many lawmakers, who want to see ZTE completely eliminated.
The measure to reinstate the sales ban was led by Sens. Tom Cotton (R., Ark.), Marco Rubio (R., Fla.), Chuck Schumer (D., N.Y.) and Chris Van Hollen (D., Md.).
In addition to once again prohibiting ZTE from buying from U.S. suppliers, it would also prohibit U.S. government agencies from purchasing or leasing telecom equipment or services from ZTE or Chinese rival Huawei Technologies Co., and ban the U.S. from subsidizing those firms with grants or loans. There is similar language in the House-passed defense bill, which by 2021 would ban government agencies from entering into or renewing contracts with any firm that uses Huawei or ZTE equipment or services.
![MuZammiL Dr. s[1]n](/data/avatars/s/32/32258.jpg?1370382459){kind=avatar}
ZTE is such a shitty company I am applauding this, bravo!
