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Senators Target Chinese Telecom Firm ZTE With Sanctions Bill

February 6, 2019

U.S. Senators Marco Rubio (R-FL), Chris Van Hollen (D-MD), Susan Collins (R-ME), Mark Warner (D-VA), Jerry Moran (R-KS), Elizabeth Warren (D-MA), and Doug Jones (D-AL) re-introduced the ZTE Enforcement Review and Oversight (ZERO) Act, a bipartisan bill to enforce full compliance by ZTE, a Chinese state-directed telecommunications firm that repeatedly violated U.S. laws, with all probationary conditions in the Commerce Department’s July 2018 deal to lift the denial order’s seven-year ban against the export of U.S. parts and components to ZTE. If the Commerce Secretary cannot regularly certify ZTE’s full compliance with the deal and with relevant U.S. export controls and sanctions laws, the denial order’s crippling punishments will be reinstated against ZTE.

“I am proud to reintroduce this bipartisan bill to hold the Chinese state-directed telecoms company, ZTE, accountable for repeated violations of U.S. exports controls and sanctions laws," Senator Rubio said. “China’s communist government continues to threaten our national security interests through state-directed actors and, while it was a mistake to strike a ‘deal’ with ZTE in the first place, this bill would ensure ZTE is held accountable if and when it cheats again.”

“ZTE’s actions represent a threat to our national security. While we work on a broader strategy to combat China’s theft of advanced U.S. technology and brazen violation of U.S. law, we must act to ensure ZTE is not able to violate the current agreement with the Department of Commerce or break our laws. This bipartisan legislation will help hold their feet to the fire and should be considered without delay,” Senator Van Hollen said.

“Having continuously violated American sanctions on Iran and North Korea, ZTE’s disregard for U.S. laws undermines our national security interests and cannot be tolerated,” Senator Collins said. “Our bipartisan bill would require the Department of Commerce to monitor ZTE and effectively put ZTE out of business if they are found to be noncompliant, ensuring the safety of our economy and national security.”

“When it comes to violating U.S. sanctions and deceiving our government, ZTE is a repeat offender. Companies like ZTE threaten our security and compromise American interests but this administration has failed to hold them accountable. This much-needed legislation will force the telecom firm to play by the rules by imposing punitive measures if ZTE once again violates trade restrictions or its agreement with the U.S,” said Senator Warner, Vice Chairman of the Senate Select Committee on Intelligence.

ZTE – with the support of the Chinese government – has repeatedly violated U.S. sanctions, and they must be held accountable for their actions,” Senator Moran said. “The bipartisan ZERO Act would authorize the Commerce Department to monitor ZTE and make certain they are not violating the current trade agreement. I urge my colleagues to support this legislation to protect our national security interests from bad actors and ensure ZTE faces severe penalties if they break the law again.”

“ZTE must be held accountable for violating our sanctions laws and threatening U.S. national security interests, not given a slap on the wrist and allowed to do business in the United States,” Senator Warren said. “I’m glad to work with Senators in both parties on a bill to ensure that this company faces severe penalties if it breaks the law again or violates its settlement agreement.”

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