ZTE’s roller-coaster ride with the U.S. government has taken another turn. The Senate may vote on legislation this week that would negate the Trump administration’s deal to get ZTE back to work.
Last week the Commerce Department said it had reached an agreement with ZTE. Under the terms of the arrangement, the Chinese phone maker must pay a $1 billion fine, put $400 million into escrow, wholly change its top leadership within 30 days, an accept a U.S.-led compliance officer. The ban will remain in place until ZTE makes the payments, which it has yet to do. Republican Senator Tom Cotton and Democratic Senator Chris Van Hollen today introduced the measure, which would restore the penalties against ZTE, to the National Defense Authorization Act (NDAA), a bill voted on by the Senate every year.
Reuters says the measure could be added to non-controversial portions the NDAA, or areas that don’t come under heavy debate in the Senate. If the measure is passed in the Senate, it would have to be reconciled with the House of Congress’ version of the NDAA and later signed by the President.
ZTE was sanctioned for violating the terms of a 2017 settlement agreement over unlawful sales to Iran and North Korea. Beginning in April, the company was cut off from U.S.-made hardware and software for a period of seven years. The company has largely been idle since.
