US Senate bill would reinstate crushing ban on ZTE if it doesn’t comply with terms of Donald Trump’s deal
Lawmakers threaten the Chinese telecoms giant with the same penalties that were lifted in July, when it was pulled back from the brink of collapse
A bipartisan group of US senators introduced legislation on Tuesday that would reimpose the crippling ban on Chinese telecommunications equipment giant ZTE if it violates terms of the deal it struck with the Trump administration.
The bill would reinstate a ban that prohibits ZTE from purchasing any American-made components, which are crucial to its products, for seven years if it violates any of the conditions of the deal, which had saved it from the brink of collapse.
The bill comes amid a continuing global backlash against Chinese technology companies, including ZTE and Huawei, as governments accuse them of being national security threats.
The British government blacklisted ZTE at the same time as the US ban in April and has not loosened its grip. In recent weeks, Japan and Australia have also stopped the telecoms companies from providing 5G equipment in their countries.
Many American lawmakers have been vocal in their opposition to the deal Trump struck with ZTE in early June, which shifted the penalty to a hefty fine and prohibited US government entities from using its network gear, but allowed the company to again buy US components and resume operations.
On Tuesday, Rubio said of the proposed legislation: “While it was a mistake to reach a ‘deal’ with ZTE in the first place, this bill will ensure ZTE is finally put out of business if it does not hold up its end of the bargain.