7/20/2018

BUSINESS/CHINA/GOP/SANCTION/TECHNOLOGY/TRUMP AS PRESIDENT: “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…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 company’s future became an issue ahead of Mr. Trump’s summit with North Korea’s leader, which China was helping to facilitate. In April, the government banned ZTE from buying American technology for seven years as punishment for failing to rectify issues related to its sanctions violation. The move threatened to put ZTE, which buys a large quantity of semiconductors from San Diego-based Qualcomm, out of business.”

Ana Swanson, “Republicans Bow to White House on Chinese Telecom Firm ZTE,” The New York Times online, July 20, 2018