Congress removes ZTE's penalty clause from the Pass Defense Bill

Given the specific details that many of my Senate colleagues know # ZTE & how #China intends to use them against the USA, I am surprised that they have yielded so easily in conference.

– Marco Rubio (@marcorubio) July 20, 2018 [19659009] The telecommunication company is considered by the intelligence community as a spy mechanism, partly by the sale of phones in the United States , which can be tracked and allowed to steal intellectual property.

The sanctions imposed on the telecommunications company in 2016 nearly paralyzed it because it blocked ZTE in the US market. Trump said last spring that ZTE should be saved.

President Xi of China and I are working together to give ZTE, a huge Chinese phone company, a way to get back to business, quickly. Too many jobs lost in China.

– Donald J. Trump (@realDonaldTrump) May 13, 2018

The Commerce Department relaxed the penalty, imposing a fine of $ 1 billion and demanding that ZTE install the company. US compliance officers and forcing the company to change board members in exchange for being able to access the US market.

Republicans and Democrats in the House and Senate have said that punishment is a slap on the wrist. House and Senate negotiators – made up of a majority of Republicans – have decided to relax their provisions. They proposed the government ban to buy ZTE equipment and a government ban to hire contractors who use ZTE equipment.

But what participants decided not to include, it was a provision that would restore harsher penalties

The administration opposed this section because she would have exceeded the penalties of the Department of Commerce.

"There were legitimate concerns about the separation of powers," said a committee assistant at NBC News. He said he was willing to accept China for its unfair trade practices and create jobs at home, but that it continues to yield and give up countless concessions to foreign countries accused Said Nancy Pelosi, leader of the Democratic House

. Sen. Tom Cotton, R-Ark., Who co-sponsored the portion of the layout that was withdrawn with Rubio and Chris Van Hollen, D-Md., Says it's unfortunate that the stronger version of ZTE does not have the same effect. was not included.

"Although it is unfortunate, the report does not include all the text of the Senate bill on ZTE, all in all it is good legislation that will strengthen our military and will take a hard line against our opponents around the world. "

The United States imposed sanctions on ZTE in 2016, banning the company from doing business in the United States for seven years, when it violated US sanctions against Iran and the United States. North Korea. The Ministry of Commerce imposed additional sanctions on the company earlier this year after failing in its reorganization plan and lying to the US government about it

Trump raised concerns for the first time on the Capitol . that he is looking for a way for ZTE to "resume business, quickly" as his administration negotiates a larger trade deal, adding that the Commerce Department has been "charged with doing so".