U.S. agreement reported with China’s ZTE
Bipartisan backlash as senators threaten to block the deal
WASHINGTON — The Trump administration has told Congress that it’s reached a deal that would allow Chinese telecommunications giant ZTE Corp. to stay in business, a source familiar with the talks who spoke on condition of anonymity to discuss a confidential matter said Friday.
A resolution of the ZTE case could clear the way for the United States to make progress in its high-stakes trade talks with China. But news of the agreement drew immediate fire on Capitol Hill.
Under the agreement, ZTE would oust its management team, hire American compliance officers and pay a fine. The fine would come on top of the roughly $1 billion ZTE has already paid for selling equipment to North Korea and Iran in violation of U.S. sanctions.
In return, the Commerce Department would lift a seven-year ban on ZTE’s purchase of components that the Chinese firm depends on from U.S. companies. The ban, imposed earlier this month, threatened to put ZTE out of business.
“This is a law enforcement action being handled by Commerce,” said Lindsay Walters, the deputy White House press secretary. “We are making sure ZTE is held accountable for violating U.S. sanctions, pays a big price and that we are protecting our security infrastructure and U.S. jobs.”
On Capitol Hill, one senior congressional source said leaders have not yet received formal notification.
Lawmakers have warned the administration not to go easy on a company that brazenly violated U.S. sanctions against two rogue nations that were pursuing nuclear weapons production.
“If the administration goes through with this reported deal, President Trump would be helping make China great again,” said Democratic Sen. Chuck Schumer of New York.
Republican Sen. Marco Rubio of Florida tweeted: “It is a great deal … for #ZTE & China … Many hoped this time would be different.” Congress, Rubio said, “will need to act.”
Trump responded to his critics late Friday, saying Democrats had done nothing to rein in ZTE. “I closed it down then let it reopen with high level security guarantees, change of management and board, must purchase U.S. parts and pay a $1.3 Billion fine,” he tweeted.