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ZTE: U.S. Senate Restoring Ban Do Not Have Legal Effect From ZKTEL

- Jun 23, 2018 -

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The U.S. Senate voted to restore the ZTE sales ban on the 85-10 vote. The Senate believes that lifting the ban will put national security at risk.


ZTE Corporation announced today that the bill does not have legal effect and still needs to be presented to US President Trump for signature or veto.


According to U.S. media reports, Trump plans to meet with Congressional Republican lawmakers this week to discuss ways to allow ZTE to re-launch its business. It aims to prevent Congress from passing the Senate’s efforts to restore sanctions against ZTE’s National Defense Authorization Act.


ZTE Corporation stated in the announcement that the company noted the news mentioned on June 19, 2018 (among others): "The US Senate passed a punishment on Monday night that will restore the punishment to China Telecom giant ZTE Corporation. Legislation."


The company wishes to clarify that the United States Senate passed the National Defense Authorization Act (NDAA) on June 18, 2018 (U.S. time). The NDAA-related sections include the following three articles related to the company:


First, until the President of the United States has proved to the relevant congressional committee that the following conditions have been met, the federal government officials can modify the penalties related to the refusal order against a Chinese telecom company. These conditions are: (1) the company There was no violation of U.S. law within one year; and (2) the company fully cooperates with the U.S. government in its investigation of its activities.


Second, any penalties imposed on ZTE by the April 15, 2018 refusal order, but subsequently reduced, exempted, or suspended shall be restored. Any subsequent adjustments to these penalties shall be based on the above The first requirement is determined.


Third, the person in charge of the United States administrative department may not sign a contract to purchase telecommunications equipment or services provided by the company or any of its subsidiaries or affiliates.


The version of the NDAA passed by the United States Senate (hereinafter referred to as the "Senate version") is still not U.S. law because it has only been passed in one of the U.S. Houses of Parliament. The version of the NDAA adopted by the US House of Representatives (hereinafter referred to as the "House of Representatives Version") does not include the first two of the above three terms. Since then, the Senate version will need to be coordinated with the House version through the Coordination Committee. Eventually, after the two houses of the Senate and the Senate passed the coordinated version, the legislation will be submitted to President Trump for signature or veto.


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