WASHINGTON (AP) – The Senate is set to pass a defense policy bill that includes a pay raise for the military, but would block a White House plan to allow Chinese telecom giant ZTE Corp. to buy component parts from the U.S.
The Chinese company is accused of violating trade laws by selling sensitive technologies to North Korea and Iran. The Trump administration announced a deal with ZTE earlier this month, but Senate leaders have sought to reverse it by tucking a provision into the must-pass defense package.
The Commerce Department barred ZTE in April from importing American components for seven years after concluding that the company deceived U.S. regulators after settling charges last year of sanctions violations. Instead of disciplining all employees involved, ZTE had paid some of them full bonuses and then lied about it, Commerce said.
The decision amounted to a death sentence for ZTE, which relies on U.S. parts. The company quickly announced that it was halting operations. The ban also hurt American companies that supply ZTE.
But earlier this month, the U.S. and China reached a deal that allows ZTE to stay in business in exchange for paying an additional $1 billion in fines and agreeing to let U.S. regulators monitor its operations.