Senate Leaders Agree to Add Reinstatement of ZTE Ban Into Amendment to FY 2019 NDAA Bill

Senate leaders agreed Monday to include language in a manager's amendment to the FY 2019 National Defense Authorization Act (HR-5515) that would retroactively reimpose a Department of Commerce-imposed seven-year ban on U.S. companies selling telecom software and equipment to ZTE that the department announced last week it planned to suspend in exchange for alternate concessions. Commerce said last week it reached a deal for ZTE to instead pay $1.4 billion, institute major leadership changes and let U.S. inspectors monitor compliance (see 1806070040). President Donald Trump's push to lift the ZTE ban got Capitol Hill criticism (see 1805140062). Attachment of the language from Sens. Tom Cotton, R-Ark., Chris Van Hollen, D-Md., and others came just before Secretary of Commerce Wilbur Ross briefed GOP senators about the department's actions. Ross didn't attempt to dissuade senators from moving forward with the amendment and there's no indication Trump will veto HR-5515 if it moves out of Congress with the ZTE language intact, given the bill's overarching priorities, Cotton told reporters. “I and obviously every other senator believes the death penalty is the appropriate punishment for [ZTE's] behavior," Cotton said. “They’re a repeat bad actor that should be put out of business. For eight years, ZTE was able to run wild and be able to become the fourth-largest telecom company in the world.” Senate Majority Whip John Cornyn, R-Texas, said he intends to support the amendment, which “really is based out of concerns that China is using communications companies as a means to conduct espionage." Senate Commerce Committee Chairman John Thune, R-S.D., said before the briefing he believes “there was enough support” for the amendment to move forward. But Senate Homeland Security Committee Chairman Ron Johnson, R-Wis., later told reporters “we need more information from the intelligence community” before voting on the ZTE language. Floor consideration of HR-5515 was to continue Tuesday, after the Senate voted 91-4 Monday on a motion to proceed on debate on the legislation.