WSJ: U.S. Senate sets vote this week to legislate the "death penalty" for ZTE

WSJ: U.S. Senate sets vote this week to legislate the
ZTE, the fourth largest smartphone vendor in the U.S., has been in the news almost daily since the Commerce Department lifted a stay it placed on a U.S. export ban against the firm. That was back in April, and it left ZTE unable to access hardware, software and components from some of its important suppliers until mid-March 2025. The Chinese smartphone and network equipment maker had been caught selling goods and services to North Korea and Iran, violating U.S. sanctions.

While ZTE nearly shut down, it got a reprieve from President Donald J. Trump, who wanted the Commerce Department to lift the ban. Last week, the Trump administration announced a deal with ZTE. The U.S. export ban would be lifted in exchange for a $1 billion fine, $400 million in escrow to cover future issues, the naming of a new Board and executive team, and the installation of a U.S. selected compliance team that would be put in place at ZTE headquarters.

But a bipartisan group on Capitol Hill was upset from the moment that the president first got involved. After all, a Congressional report from 2012 called ZTE and Huawei threats to U.S. national security. That feeling continues to this day. According to the Wall Street Journal, a group of GOP Senators has added an amendment to the National Defense Authorization Act that would make it against the law for ZTE to obtain supplies from U.S. companies. This bill is usually passed easily with support from both sides of the aisle.

Once through the Senate, the bill would move to a conference committee with the House, which passed its own version of the bill without the amendment related to ZTE. Still, that wording can be added in committee. And because many items covered in the bill are popular with members of both chambers, most Senators expect the bill to pass Congress and be signed into law by the president.

As Senator Tom Cotton (R-Arkansas) puts it, "I would expect that there wouldn’t be a ZTE. The death penalty is an appropriate punishment for their behavior."

source: WSJ



1. Doakie

Posts: 2478; Member since: May 06, 2009

But but....Axon 8/9!!! I hate it when govt comes between me and the phones I love.

3. Dr.Phil

Posts: 2510; Member since: Feb 14, 2011

And then ZTE will go bankrupt and be absorbed by Huawei. Or there will be another company that basically absorbs ZTE and creates a new company that essentially is the same. So this solves what exactly? They claim national security as the problem but you’re only getting rid of one company to feed into another you don’t like either.

7. mootu

Posts: 1541; Member since: Mar 16, 2017

If ZTE gets this so called death penalty then the Chinese will react by not signing off on Qualcomm's $44 billion takeover of NXP, which happens to be one of the largest deals ever. Don't the idiots in the US senate realise they are only hurting thier own companies with all this Chinaphobia? Tom Cotton's statement says it all. "I would expect that there wouldn’t be a ZTE. The death penalty is an appropriate punishment for their behavior." What a f****** idiot, who puts these people into power?

4. Foxgabanna unregistered

In all honesty, if you ain’t Apple your getting screwed. That’s why Samsung users have long schlongs and iPhone users have Vienna sausages. Which side are you on?

5. kiko007

Posts: 7521; Member since: Feb 17, 2016


10. Tyrell23

Posts: 3; Member since: Jun 05, 2018

… yeah!... what?...

8. nwright94

Posts: 211; Member since: Oct 14, 2014

In an article that didn’t mention Apple or Samsung, you still managed to somehow make it about them two. Congratulations, you’re obsessed.

9. two_soggy_waffles

Posts: 58; Member since: Aug 10, 2017

long schlongs

11. Tyrell23

Posts: 3; Member since: Jun 05, 2018

What are we talking about?!...

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