Senators push to block Trump's ZTE deal in final defense bill

Senators push to block Trump's ZTE deal in final defense bill
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A bipartisan group of senators is urging negotiators on Capitol Hill to retain a provision in the annual defense policy bill that would block President TrumpDonald John TrumpHow to stand out in the crowd: Kirsten Gillibrand needs to find her niche Countdown clock is on for Mueller conclusions Omar: White supremacist attacks are rising because Trump publicly says 'Islam hates us' MORE’s deal to save Chinese telecommunications giant ZTE.

“We strongly oppose the June 2018 deal with ZTE negotiated by the Commerce Department’s Bureau of Industry and Security (BIS) to lift the seven-year ban against the export of U.S. parts and components to ZTE,” the senators wrote in a letter Thursday to the chairmen and ranking members of the House and Senate Armed Services committees.

The letter was signed by Sens. Marco RubioMarco Antonio RubioCountdown clock is on for Mueller conclusions Rubio wants 'all' of Mueller report made public including founding documents Rubio: Trump reversal on North Korea sanctions 'shouldn't have happened that way' MORE (R-Fla.), Chris Van HollenChristopher (Chris) Van HollenOvernight Defense: Trump to reverse North Korea sanctions imposed by Treasury | Move sparks confusion | White House says all ISIS territory in Syria retaken | US-backed forces report heavy fighting | Two US troops killed in Afghanistan The Hill's 12:30 Report: Manafort sentenced to total of 7.5 years in prison Hillicon Valley: Google takes heat at privacy hearing | 2020 Dems to debate 'monopoly power' | GOP rips net neutrality bill | Warren throws down gauntlet over big tech | New scrutiny for Trump over AT&T merger MORE (D-Md.), Tom CottonThomas (Tom) Bryant CottonSenate rejects border declaration in major rebuke of Trump Hillicon Valley: Doctors press tech to crack down on anti-vax content | Facebook, Instagram suffer widespread outages | Spotify hits Apple with antitrust complaint | FCC rejects calls to delay 5G auction Senate votes to confirm Neomi Rao to appeals court MORE (R-Ark.), Mark WarnerMark Robert WarnerTrump, Congress brace for Mueller findings The wisdom of Trump's lawyers, and the accountability that must follow Mueller's report Hillicon Valley: Kushner accused of using WhatsApp, personal email for official work | White House rejects request for Trump-Putin communications | Facebook left 'hundreds of millions' of passwords unsecured | Tech pressured to root out extremism MORE (D-Va.), Roy BluntRoy Dean BluntRisk-averse Republicans are failing the republic Senate GOP poised to go 'nuclear' on Trump picks The Hill's Morning Report - Dems contemplate big election and court reforms MORE (R-Mo.) and Bill NelsonClarence (Bill) William NelsonEx-House Intel chair: Intel panel is wrong forum to investigate Trump's finances The Hill's Morning Report - Trump budget reignites border security fight 2020 party politics in Puerto Rico MORE (D-Fla.).

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Rubio, Van Hollen, Cotton and Senate Minority Leader Charles SchumerCharles (Chuck) Ellis Schumer4 in 5 Americans say they support net neutrality: poll GOP senator: Trump's criticism of McCain 'deplorable' Schumer to introduce bill naming Senate office building after McCain amid Trump uproar MORE (D-N.Y.) successfully added an amendment to the Senate’s version of the National Defense Authorization Act (NDAA) that would keep in place penalties that were levied on ZTE after it admitted to violating sanctions on Iran and North Korea.

The amendment was added after the Commerce Department announced in June that it had agreed to lift the penalties against ZTE in exchange for the company paying a $1 billion fine and embedding a U.S.-selected compliance team into the firm.

The Commerce Department announced Wednesday that it had signed a deal with ZTE, moving the administration one step closer to lifting the ban on the Chinese phone maker doing business with U.S. companies.

The House version of the defense policy bill does not address Trump’s ZTE deal, but does include a ban on government contracting with ZTE or Huawei, another Chinese telecommunications company.

The White House last month said it “strongly opposes” the Senate provision, but did not issue a veto threat against the NDAA. Both the Senate and House versions of the bill passed with veto-proof majorities.

House and Senate conferees officially started negotiations Wednesday to reconcile the two version of the NDAA. Negotiators have been tight-lipped about their plans for the ZTE provision.

In their letter, Rubio, Van Hollen, Cotton, Warner, Blunt and Nelson highlight testimony from the intelligence community that ZTE, Huawei and other Chinese state-directed firms represent a national security threat by providing the capacity for spying and intellectual property theft.

“As you prepare the conference report, we therefore urge you to retain—and further strengthen—Section 6702 of the Senate-passed FY 2019 NDAA, which would not only reinstate the April 2018 penalties against ZTE and prohibit the modification of any penalties against a Chinese telecommunications firm unless certain conditions are met, but also prohibit the U.S. government from using or procuring equipment from, or entering into a contract with ZTE or Huawei,” they wrote.

The senators also voiced support for a separate provision in the NDAA that seeks to reform the Committee on Foreign Investment in the United States (CFIUS), the interagency panel that assesses national security threats posed by significant investments in U.S. businesses by non-U.S. investors. The reforms are meant to guard against China accessing sensitive technology.

“As you negotiate a conference report for the 2019 NDAA, we urge you to include the Senate-passed CFIUS reforms and ensure that the final language fully addresses our national security and competitiveness concerns,” the senators wrote. “We believe that efforts to weaken the robust protections in the [Foreign Investment Risk Review Modernization Act] will embolden our adversaries and present threats to our national security.”