Jun 13, 2018

White House eyes ZTE bargain after Senate vote

Joe Uchill

ZTE sign on side of building — Photo: Zhang Peng/Getty Images

The Wall Street Journal reports President Trump has not given up on his $1.4 billion deal to save the Chinese telecom manufacturer ZTE, despite the Senate 's move to nix any deal by adding the provision to a must-sign defense bill.

The counter move: The Journal cites a White House official who says the administration will try to get the ZTE language softened when the House and Senate compromise on a final version of the National Defense Authorization Act.

Why it matters: The deal is make or break for ZTE, which will otherwise no longer be allowed to import American components. ZTE has ceased production without access to U.S. parts — particularly microprocessors with no clear Chinese replacement.

Lawmakers have several problems with the deal. ZTE has been punished twice for selling banned technology to North Korea and Iran in about a year. After the first infraction, ZTE agreed that, if it was ever caught again, it would face the ban on U.S. tech.
Senators from both parties argue that the deal encourages firms to violate embargoes to hostile nations, because the U.S. won't appear to have the will to respond.
There are separate concerns on Capitol Hill that ZTE intentionally sabotages its wares to bolster Chinese espionage efforts.

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White House eyes ZTE bargain after Senate vote

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