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Trump, U.S. lawmakers meet to discuss 'problematic' measure on China's ZTE

21 June, 2018, 05:28 | Author: Lucille Rivera
  • CNA file

That seven-year ban had been imposed by the Department of Commerce's Bureau of Industry and Security in March, after the vendor allegedly did not live up to the terms of an agreement that had been worked out after it illegally shipped telecom equipment to Iran and North Korea. Unfortunately for the company, the ban now has a real chance of being reinstated.

Last month, smartphone manufacturer accepted Donald Trump's get out of jail free card, when the U.S. president removed the trading ban imposed on the company as a personal favour to Chinese president Xi Jinping.

That sets up a battle with the White House over whether a supplier ban on the Chinese company could be lifted as part of a US$1.4 billion settlement agreement ZTE reached with the U.S. Commerce Department on June 7. Any compromise measure must then be passed by both chambers and signed into law by Trump.

SEE ALSO: Welp, the U.S.is already ending its ZTE sanctions. The House approved the bill without the ZTE language.

Cornyn told reporters that government procurement "is much more sensitive when it comes to national security".

The U.S. Senate on Monday passed its version of the 2019 defense spending bill, which calls for the possible increase in pay for military members. The destiny of ZTE is also pivotal in the tense US-Chinese negotiations over trade.

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The Trump administration wants legislators to modify the Senate language on ZTE in the defense bill, once the House and Senate begin work to merge their versions of the legislation.

Almost two weeks ago, Ross announced in a Commerce Department statement that ZTE "agreed to severe additional penalties and compliance measures to replace the U.S. Commerce Department's Bureau of Industry and Security (BIS) denial order imposed as a result of ZTE's violations of its March 2017 settlement agreement". Too many jobs in China lost.

Lawmakers in Washington voted to reinstate the ban that prevents the technology giant from buying United States components and software after breaking an agreement for violating sanctions on Iran and North Korea.

White House spokeswoman Lindsay Walters had said the meeting would focus on the "problematic" amendment to the defense bill, but the gathering ended up largely addressing an ongoing furor about the Trump administration's policy of separating migrant children from their parents at the US border.

It could face a hard path to being included in the final NDAA, especially if Trump lobbies the Republican-led Congress against it, as he is expected to do.

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