Schumer, Other Lawmakers Criticize Reported Deal to Replace ZTE Ban With Alternate Punishment

Senate Minority Leader Chuck Schumer, D-N.Y., and other lawmakers continued opposition through Wednesday to President Donald Trump's push to reconsider recently applied Department of Commerce sanctions against ZTE. Commerce announced in April a seven-year ban on U.S. companies selling telecom software and equipment to the Chinese telecom gearmaker (see 1804170018). The latest round of opposition followed reports ZTE signed off on a preliminary deal on alternative conditions to replace the ban. It would require the Chinese telecom equipment maker pay a $1 billion fine, put an additional $400 million in escrow to cover future violations of U.S. sanctions, replace its management team and allow U.S. inspectors free access to its sites to ensure equipment made by U.S. companies is being used as claimed. If true, Trump “has put China, not the United States, first,” Schumer said. “By letting ZTE off the hook, the president who roared like a lion is governing like a lamb when it comes to China. Congress should move in a bipartisan fashion to block this deal.” Senate Intelligence Committee Vice Chairman Mark Warner, D-Va., called the reported deal “a huge mistake. ZTE poses a threat to our national security. ... It’s the unanimous conclusion of our intelligence community.” Sen. Marco Rubio, R-Fla., tweeted it would mean China is “on the verge of winning again. They mock us by appointing someone from another sanctioned company as the supposed 'watchdog' over #ZTE & we respond by helping ZTE stay in business.” Rep. Anna Eshoo, D-Calif., wrote Secretary of Commerce Wilbur Ross urging him to keep the ban. “Your number-one responsibility and mine is contained in our Oath of Office: to ‘protect and defend’ our citizens from enemies external and internal,” Eshoo said. “We cannot make deals with foreign entities with a history of compromising our telecommunications sector when it presents a clear and direct challenge to our national security.” Members of both parties have been pushing for legislation aimed at limiting Trump's ability to weaken the ban (see 1805220057, 1805230058, 1805240064 and 1805250059).