Senators may block Trump’s ZTE deal whether he likes it or not

GOP senator fails to kill provision blocking Trump's ZTE deal

GOP senator fails to kill provision blocking Trump's ZTE deal

In February, U.S. intelligence officials warned Americans not to use smartphones made by ZTE or Huawei - another Chinese telecom company - as the communication technology could be compromised "to gain positions of power inside our telecommunication networks that provides the capacity to exert pressure or control over our telecommunications infrastructure".

The move enraged Republicans and Democrats who said ZTE not only worked with Iran and North Korea in violation of USA sanctions, but is a threat to national security, offering Chinese intelligence operatives a way to spy on the US through ZTE products.

After it was exposed that ZTE violated US trade embargoes and directly lied to officials about the conduct, the Commerce Department banned USA exports to the company as punishment. However, the corporation would have to pay $1 billion in penalties, adding another $400 million in escrow in order to cover possible future fines.

Commerce Secretary Wilbur Ross was on Capitol Hill on Monday evening to speak with senators behind closed doors about the details of the ZTE deal, in a meeting that began shortly after the decision to include the amendment blocking the president's deal was announced.

Shares in ZTE fell 42 percent in Hong Kong on Tuesday, their first trading day after it agreed to the deal, in which it pays a $1 billion penalty to the U.S. government and replaces its top managers.

All members of its leadership at or above the senior vice president level would be removed within the 30-day period, with a commitment that they would not be rehired, along with any executives or officers tied to the wrongdoing, it said.

ZTE (ztcoy), a focal point of a U.S. It will also have to replace its management board.

The deal will involve ZTE paying a $1bn penalty and hiring a US-approved compliance team. The coordinator will have a staff of at least six employees funded by ZTE.

In Shenzhen, the firm's shares were down 10% in early trade, which is the maximum allowed on the mainland. On Wednesday in Hong Kong, they nosedived 40% to their lowest level in more than a year.

ZTE also said in filings on Tuesday that it would work to resume operations as soon as possible after the ban gets lifted, and would republish its first-quarter financial results after assessing the impact of the ban and the settlement agreement.

Democratic and Republican lawmakers have said they believe ZTE's sales to Iran represent particularly "dangerous" breaches of US national security.

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