US Senate wants to reject Trump deal, endangering ZTE’s survival

The US Senate plans to amend another bill that would reverse US President Donald Trump’s deal with Chinese smartphone maker ZTE. If that continues, it will presumably mean the end of ZTE.

The Senate wants to undo the deal by amending the NDAA, a bill setting the US military’s budget for next year, NBCNews reports. Because that bill is crucial, the Senate expects Trump to sign it. The president can veto any law, but he can’t make changes.

Opposition Democrats and Republicans from Trump’s own party are opposed to the deal, saying it would not represent the interests of American companies and would threaten security. US intelligence agencies fear that the Chinese government is using companies like ZTE to spy on the US government and citizens.

The Senate knows that rejecting the deal will likely mean the end of ZTE, at least as a network equipment maker. The maker of smartphones and networking equipment was banned from trade by the United States because it had traded with Iran when the US had not allowed it.

The trade ban prevented it from exporting or importing goods or services from US companies. As a result, it was not allowed to buy processors from Qualcomm or supply smartphones to American providers, for example. Trump struck a deal with ZTE to end the trade ban. ZTE and the Chinese government have not yet responded. The Senate will vote on the NDAA and the decision to torpedo the deal later this week.

ZTE Pace Go