Senate votes to reject Trump’s rescue of Chinese firm ZTE

The US Senate has voted to reinstate a ban on ZTE that prevents the Chinese telecom company from buying US components and using US software. But it’s still not clear if the reversal will make it into law: it has to clear a conference with the House, and then avoid a veto from President Trump, who advocated for cutting a deal that would lift the ban.

ZTE was hit with the trade ban by the US Commerce Department in April after failing to following through with a punishment for violating sanctions on Iran and North Korea. That ban essentially shut down ZTE, which relies on US parts like Qualcomm processors. Shortly thereafter, Trump said he would cut a deal to revive the company, and a deal was reached — with additional penalties that the department said were uniquely stringent — earlier this month.

But senators on both sides of the aisle immediately threatened to stop the deal and reinstate the ban, citing ZTE as a national security risk. And ultimately, a bipartisan group worked to get legislation introduced.

In a joint statement, Senators Marco Rubio (R-FL), Chuck Schumer (D-NY), Chris Van Hollen (D-MD), and Tom Cotton (R-AR) said today: “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. It is vital that our colleagues in the House keep this bipartisan provision in the bill as it heads towards a conference.”