Republicans Bow to White House on Chinese Telecom Firm ZTE

In Conflict of Interest, Economy On

WASHINGTON — Republican lawmakers backed away from a plan to reinstate stiff penalties on Chinese telecom firm ZTE, handing a win to President Trump, who had personally intervened to save the Beijing company.

Congressional leaders removed a provision, tucked into a military policy bill, that would have stopped the Trump administration from lifting penalties on ZTE. Rather than prevent the company from buying American technology, the bill will simply limit federal purchases of ZTE products, such as handsets.

The move drew swift criticism from lawmakers who had pushed for a tougher approach to ZTE, which was found guilty in 2016 of violating American sanctions on Iran and North Korea.

“Despite bipartisan support to put American national security before jobs in China, the Republican leadership refused to take any real, substantive action on ZTE. Instead, they joined President Trump in bowing to Beijing,” said Senator Chris Van Hollen, a Maryland Democrat. “It’s weak and shameful.”

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