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Technology

Senate passes military funding bill that would reimpose sanctions on Chinese telecom ZTE

The Senate easily passed a military funding bill that would reimpose sanctions on Chinese telecommunications company ZTE, challenging a controversial deal negotiated by the Trump administration.

The so-called National Defense Authorization Act, or NDAA, which passed with 85 votes in favor and just 10 against, will now be conferenced with another version from the House of Representatives that was passed in May.

It’s not yet clear whether the provision that would slap sanctions back on ZTE will make it out of the conference period and arrive on President Donald Trump‘s desk.

Trump administration officials sought to work with Senate leaders to change the languageof the defense bill. The administration said it preferred the House’s version, which did not include the provision on ZTE.

The White House could still push for changes when House and Senate leaders meet to reconcile the two versions of the bill.

ZTE was hit with penalties in 2016 after the Commerce Department revealed the company was found to have made shipments to Iran and North Korea in violation of U.S. sanctions.

In May, Trump reversed course and vowed to protect ZTE jobs in China — an announcement that confounded lawmakers.

Under the deal struck with ZTE and the Commerce Department under its current secretary, Wilbur Ross, ZTE would pay a $1 billion fine and change some of its leadership in exchange for the U.S. lifting sanctions on the company.

In a joint statement following the Senate bill’s passage, Republican Sens. Marco Rubio and Tom Cotton and Democrats Chris Van Hollen and Chuck Schumer said they are “heartened that both parties made it clear that protecting American jobs and national security must come first when making deals with countries like China, which has a history of having little regard for either.”

They added: “It is vital that our colleagues in the House keep this bipartisan provision in the bill as it heads towards a conference.”

This story is developing. Please check back for updates.

Source: Tech CNBC
Senate passes military funding bill that would reimpose sanctions on Chinese telecom ZTE

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