White House to block Congress from stopping ZTE deal

WSJ U.S. Senate sets vote this week to legislate the

Days after the Trump administration agreed to restore Chinese telecom firm ZTE's access to its US parts suppliers, a bipartisan group moved to block the deal.

A ZTE smart phone is pictured in this illustration taken April 17, 2018.

Commerce Secretary Wilbur Ross last week announced the US reached a deal with ZTE that includes a record fine, changes to the company's board and management and USA compliance officers.

ZTE (0763.HK) did not immediately respond to requests for comment on Monday.

"It was a very strict deal that President Trump pushed forward", she said.

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.

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On June 1, Reuters exclusively reported on the monetary penalty and other terms demanded to reverse the ban. Little of that happened, however, and the Commerce Department enacted a seven-year suspended ban against ZTE in retaliation. The telecommunications company announced it was shutting down just weeks after the ban was announced. ZTE then ceased major operations.

Dealing in the firm was suspended in April after U.S. authorities banned American businesses from trading with ZTE for 7 years due to alleged violations of the trade sanctions against Pyongyang and Tehran by the staff, which the Chinese corporation didn't punish. After 10 years, if there are no violations, the $400 million will be returned to ZTE. He stressed that lawmakers must "remain clear-eyed and unified on the threat China poses to US interests and national security", even if the president wasn't.

The Senate moved earlier in the week to use the NDAA to block Trump's deal on ZTE.

The U.S. Commerce Department can exercise discretion in granting exceptions.

A separate monitor was appointed to a three-year term by a US federal court in Texas last year. The Commerce Department placed additional sanctions on the company after it failed to follow through with its reorganization plan and lied to the US government about it.

US lawmakers have attacked Washington's agreement with ZTE and plan legislation to roll it back, citing intelligence warnings that ZTE poses a national security threat. "What you are seeing is a bipartisan reaction against letting ZTE off the hook" he said.

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