WASHINGTON – Republican lawmakers have withdrawn from a plan to reintroduce severe penalties against Chinese telecom company ZTE and Trump, who personally intervened to rescue the Beijing-based company, has triumphed.
The congressional leaders removed a trapped provision of a military police law that prevented the Trump administration from impose sanctions on ZTE. Instead of preventing the company from buying American technology, the bill is limited to the purchase of ZTE products such as handsets by the federal government.
This step was heavily criticized by legislators who voted for ZTE In 201
"Despite bipartisan support for American national security over jobs in China, the Republican leadership refused to take concrete action against ZTE and instead joined President Trump and bowed to Beijing," said Senator Chris Van Hollen, a Democrat from Maryland. "It is weak and shameful."
Most Americans have never heard of ZTE, but it has become a ping-pong ball in diplomatic and economic negotiations between the United States and China. The future of the company became a topic in the run-up to Trump's summit with North Korea's leader, which helped China.
In April, the government banned ZTE from buying American technology for seven years as a punishment that the problems could not be remedied by its sanction violation. The move threatened to push ZTE, which buys a large number of Qualcomm semiconductors in San Diego, out of business.
President Xi Jinping from China personally appealed to Mr. Trump to rescue the company, and Trump was committed. The Commerce Department announced on June 7 that it would repeal the ban in return for paying the Chinese company a fine of one billion dollars, replacing its board and leadership, and embedding a hand-picked compliance agreement from the United States. Teams in his company. Wilbur Ross, the Commerce Minister, said the punishment was the most stringent ever imposed by the agency's industry and security bureau.
The legislation in Congress contains a text that extends the authority of the Foreign Investment Committee in the United States, which examines foreign bids on security threats. And it also supports the system that the United States uses to monitor the technologies being exported abroad. Republican congressional leaders confirmed on Thursday that the House of Representatives and the Senate had reached a deal on investment provisions.
"This deal on #CFIUS is good news," wrote Marco Rubio, Florida Republican in a Twitter post on Friday. They had to grab ZTE to get it, but the odds that a # China-controlled Telecomm will not just stay in business, but here in the US, have only increased. #BadTradeoff. " In recent weeks, the president and other members of the government have met with congressional leaders to persuade them to mitigate their restrictions on ZTE. In May, Ross and Steven Mnuchin, the Minister of Finance, were sent to Capitol Hill to encourage Republicans to lessen their public criticism in order to facilitate both trade talks with the Chinese and tensions over the Trump summit, as well as North Korea's Kim Jong. U.N.
Since then, a trade agreement with the Chinese has proved elusive. White House officials have rejected China's offer to buy American products as inadequate and pushed for the imposition of tariffs on Chinese goods.
In a statement, Chuck Schumer, the Democratic chairman of the Senate, said that "Once again, President Xi and the Chinese government made the big winners, Trump, Mr. Schumer said," has its core promise, China to be tough, just broken, just to please the President of China – and he gets nothing back. "