Published: Thu, June 21, 2018
Worldwide | By Gretchen Simon

Senate rejects Trump's ZTE lifeline

Senate rejects Trump's ZTE lifeline

That seven-year ban had been imposed by the Department of Commerce's Bureau of Industry and Security in March, after the vendor allegedly did not live up to the terms of an agreement that had been worked out after it illegally shipped telecom equipment to Iran and North Korea.

"The NDAA is not really a reversal of the ZTE deal, but will in all probability prolong the ban-lifting process for ZTE", said Nikhil Batra, a senior research manager with industry consultancy IDC.

The legislation, passed by 85-to-10 late on June 18, also contains a provision to block President Donald Trump's deal with China to allow the telecommunications giant ZTE to stay in business despite violations of USA sanctions against Iran and North Korea. ZTE pleaded guilty to those charges in March previous year and was hit with $1.2 billion in fines.

The reconciled version from the two chambers of the US Congress also needs to be signed off by Trump before it becomes law.

ZTE has paid the fine for violating USA trade laws and is in the final stages of arranging an account for future penalties, the South China Morning Post reported on Tuesday, citing people with knowledge of the matter.

The U.S. Senate on Monday passed its version of the 2019 defense spending bill, which calls for the possible increase in pay for military members.

Iran vs Spain | 20 Jun 2018
Spain have conceded 10 goals in their last four World Cup matches - as many as in their previous 15 World Cup matches combined. With one more match to go, it is unlikely Spanish coach Fernando Hierro will make changes to his squad from the last game.

"We're heartened that both parties made it clear that protecting American jobs and national security must come first when making deals with countries like China, which has a history of having little regard for either", they wrote.

Senators are looking to add provisions to the defense bill to reinstate sanctions placed on the Chinese firm.

Trump's agreement with ZTE was struck after the U.S.in April blocked its access to USA suppliers, saying it had broken a sanctions settlement and then lied about it. The company has lost almost two-thirds of its value since it resumed trading last week after a two-month suspension that followed the initial ban.

The ban is now prohibiting ZTE to purchase components from United States manufacturers, including chipsets from San Diego-based Qualcomm.

The bill also includes a section that prevents the Secretary of Defense from purchasing any equipment or doing any business with ZTE, and Huawei.

The Trump administration hopes to revise the ZTE language in House-Senate negotiations on the defense bill. It might all depend on the group of Republican lawmakers involved in writing the provision who are now scheduled to meet with the President on Wednesday.

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