The US Senate has rejected the deal President Donald Trump reached with ZTE, and vote to reinstate the seven-year ban on the company, which will not be able to buy USD components over that period, the Wall Street Journal reported. ZTE was banned for violating US Sanctions and because it was suspected by the Commerce Department of spying on people. The company has denied the accusation.
The bill was part of the annual defence policy bill; it will now move to the House of Representatives. Trump will be meeting with House and Senate members of his party this week, to see if a deal about ZTE can be struck. He can also use his veto power.
The defence bill also includes provisions aimed at curbing a range of Chinese deals in technology and other sensitive sectors. Overall, the bill would support a total of USD 716 billion in defence spending, in line with a two-year budget deal approved by Congress earlier this year. The bill would also prohibit US government agencies from purchasing or leasing telecom equipment or services from ZTE or Huawei, and ban the U.S. from subsidizing those firms with grants or loans.
