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Senate Republicans Capitulate to Trump's ZTE Deal

The US Senate is ready to drop opposition to the Trump Administration's deal to save Chinese telecoms vendor ZTE, essentially meaning that the company will remain in business.

Multiple reports Friday say that Senate Republicans are dropping language from a defense bill, due to be voted on early next week, that would have reinstated a ban that stopped ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763) from buying US components for seven years, originally laid down in April.

Trump brokered a deal to recuse ZTE in May. The company would pay a $1 billion fine and changed its management team. The US Commerce department lifted the components ban in June. (See Trump Says ZTE Can Re-Open... With Conditions.)

Many in the Senate objected to the deal, with ZTE viewed by many as a security risk. Senate Republican leadership, however, now appear to have killed the possibility of a ban on ZTE being reinstated. (See ZTE Tumbles Again as US Senate Rejects Rescue Deal.)

This doesn't mean that many senators aren't enraged by the latest moves. Republican senator (and sometimes Light Reader) Marco Rubio is describing removing the ban from the bill as "weak" and "caving." (See ZTE Stock Rises After US Lifts Ban.)

He tweeted Friday evening:

As the ZTE saga unfolded, Light Reading had previously speculated on whether the Trump administration could cut a similar deal with Huawei Technologies Co. Ltd. (See Will Trump Make a Deal With Huawei?)

— Dan Jones, Mobile Editor, Light Reading

Phil_Britt 7/23/2018 | 2:32:59 PM
Caving not a surprise No one in the party seems to want to stand up to the Administration when it's time to vote.
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