The House Appropriations Committee today snubbed President Donald Trump’s request to resolve the regulatory action against ZTE. The House committee unanimously passed an amendment to an appropriations bill that reinforces the sanctions made in April against ZTE.
The amendment not only upholds the sanctions, but it also added language that highlighted the security risk for U.S. companies working with ZTE. Politico reported that Representative Dutch Ruppersberger (D-Md.) , who drafted the amendment, said: “We cannot allow [ZTE] to infiltrate U.S. networks or give them access to the U.S. markets while they continue to be beholden to their government.
Earlier this week, Trump tweeted in support of ZTE, asking the Commerce Department to get the company “back into business, fast.” The Commerce Department in April forbade U.S. companies from selling components to ZTE for seven years, which led the company to shut down its manufacturing operations.
The ban was put in place after ZTE broke U.S. trade control laws by selling telecom gear to Iran and North Korea. The company has also been accused of stealing intellectual property for the Chinese government.
The Hill also reported today that during a trade talks with China, Trump said that his support for ZTE came directly from a request made by Chinese President Xi to look into matters around the case. Notably, this comment came following the House committee amendment.