Schumer, Rubio Urge Hill Action Amid Reports of Trump Administration Deal to Lift ZTE Ban

Congress should move forward with legislation to limit President Donald Trump's ability to lift or otherwise weaken a Department of Commerce-imposed seven-year ban on U.S. companies selling telecom software and equipment to ZTE, Senate Minority Leader Chuck Schumer, D-N.Y., and Sen. Marco Rubio, R-Fla., said separately Friday. The push followed reports the Trump administration had reached a tentative deal with the Chinese government. The White House didn't comment at our deadline on reports administration officials briefed top Hill lawmakers. The deal would involve Commerce lifting its full ban in exchange for ZTE's agreement to pay a substantial fine, install an American-staffed compliance unit within the Chinese telecom equipment maker and substantially change the firm's management. Trump and Secretary of Commerce Wilbur Ross noted all three stipulations in comments last week (see 1805220057 and 1805240064). “If the administration goes through with this reported deal,” Trump “would be helping make China great again,” Schumer tweeted. It “would be a huge victory for President Xi [Jinping], and a dramatic retreat” by Trump. “Both parties in Congress should come together to stop this deal in its tracks,” Schumer said. Rubio, who was already publicly critical of attempts to rescind the ZTE ban (see 1805230058), tweeted the plan “is a great deal … for #ZTE & China.” The Chinese government “crushes U.S. companies with no mercy & they use these telecom companies to spy & steal from us,” Rubio said. “Many hoped this time would be different. Now congress will need to act.” The House-passed version of the FY 2019 National Defense Authorization Act (HR-5515) and Senate Armed Services Committee-cleared version of the bill contain ZTE-related provisions. Senate Armed Service's NDAA legislation includes the Banking Committee-cleared Foreign Investment Risk Review Modernization Act (S-2098), which would bar Trump from changing the Commerce ban on U.S. sales to ZTE sans certification to Congress that the company complied with U.S. laws. Trump faced criticism over ZTE last week (see 1805140062, 1805150068 and 1805160061).