Bipartisan Senate effort aims to override Trump’s deal to save ZTE

Leroy Wright
June 13, 2018

In February, U.S. intelligence officials warned Americans not to use smartphones made by ZTE or Huawei - another Chinese telecom company - as the communication technology could be compromised "to gain positions of power inside our telecommunication networks that provides the capacity to exert pressure or control over our telecommunications infrastructure".

The amendment will also ban government agencies from trading telecommunications equipment and services with Chinese telecom companies ZTE and Huawei, as well as from providing loans to or subsidizing either company, according to The Hill.

Acacia Communications Inc's supply agreement with ZTE Corp will remain suspended until the U.S. Department of Commerce implements its recent settlement with the Chinese firm, the U.S. company said on Tuesday.

All members of its leadership at or above the senior vice president level would be removed within the 30-day period, with a commitment that they would not be rehired, along with any executives or officers tied to the wrongdoing, it said.

A separate monitor was appointed to a three-year term by a US federal court in Texas last year. Cotton said the president won't veto the bill "because the bill pertains many other critical priorities".

To save his ZTE deal, Trump would have to veto the entire defense-authorization bill, which would go against his long-standing statements on the military and USA defense protocols. "The new governance structure will pose challenges for the company's management in the future", Zhongtai Securities said in a note.

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He accused Mr Trudeau for the collapse of a joint communiqué after saying he was going ahead with retaliatory tariffs on the US. He told The New York Times in March he has been sober for 23 years, calling it "the center of my life".

The ban forced ZTE to suspend major operations, and trading in its shares in were halted on 17 April. Its Shenzhen shares fell by their 10 per cent limit to 28.18 yuan after it confirmed details of the agreement publicized by the US government on Monday.

ZTE shares plunged in Hong Kong and Shenzhen on Wednesday following the settlement, with investors wiping about $3 billion off its market value.

The decision to lift the U.S. ban on ZTE has faced sharp criticism from USA politicians, including from some Republicans. This issue has become one of the key problems in a trade war between the two countries.

Republicans, who control both chambers of Congress, and Democrats expressed national security concerns about ZTE after it broke an agreement to discipline executives who had conspired to evade US sanctions on Iran and North Korea.

However, this year the Commerce Department reimposed the sanctions when it emerged that the telecoms company - China's second-largest - had not, in fact, disciplined the management.

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