White House Attempts to Alter Senate NDAA Language Aimed at Reinstating ZTE Ban

The White House said it's aiming to reshape Senate-proposed language for the FY 2019 National Defense Authorization Act (HR-5515) that would retroactively restore 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 from the Chinese manufacturer. “The massive penalties imposed on ZTE are part of an historic enforcement action taken by” Commerce, a White House spokeswoman reportedly told the press pool Wednesday. “This will ensure ZTE pays for its violations and gives our government complete oversight of their future activity without undue harm to American suppliers and their workers. The Administration will work with Congress to ensure the final NDAA conference report respects the separation of powers.” Commerce said last week it reached a deal for ZTE to pay $1.4 billion, institute major leadership changes and let U.S. inspectors monitor compliance (see 1806070040). Sens. Tom Cotton, R-Ark., Chris Van Hollen, D-Md., and others successfully included their ZTE language in a manager's amendment for HR-5515 this week (see 1806120001). An earlier House-passed version of the bill also included amendments aimed at countering Trump on ZTE (see 1805240064). Senate votes on the NDAA amendments were Wednesday evening.