US Senate votes to reimpose ban on China's ZTE, shares plunge

US Senate votes to reimpose ban on China's ZTE, shares plunge

ZTE pleaded guilty to those charges in March past year and was hit with $1.2 billion in fines.

The House of Representatives has passed its own version of the bill, and the two measures must now be reconciled before a compromise measure can be passed and sent to Trump for his signature or veto.

Earlier this month, the U.S government reached an agreement with ZTE which would allow the firm to resume business. The lawmakers involved in the bill's amendment are concerned that China could use ZTE (and Huawei) devices to steal data from the USA, eavesdrop on American citizens and launch cyberattacks against the country.

Senators on both sides of the aisle immediately threatened to stop the deal and reinstate the ban, citing ZTE as a national security risk.

ZTE was hit in April with a seven-year ban barring United States suppliers selling to it after it broke an agreement to discipline executives who conspired to evade United States sanctions on Iran and North Korea.

ZTE has agreed to pay a $1 billion penalty and put $400 million in an escrow account in a US bank as part of the settlement reached on June 7 to allow it to do business again with USA suppliers.

"The heavy sell-off in ZTE and sharp recovery [on Wednesday] was due to rampant speculation, and serious misunderstanding, of what will happen to the process of ZTE meeting the settlement terms, and the implications of the US Senate passing the defence budget bill with the condition that the US export ban on ZTE be restored", Lee said.

And boy, that's when things will get interesting.

Many across the USA still see ZTE as a threat to national security, deeming president Trump's latest decision as foolish.

Then in May, Trump unexpectedly tweeted concern for the jobs that could be lost at ZTE-which employs 75,000 people.

President Donald Trump has met with lawmakers after the Senate moved to block a White House plan to allow Chinese telecom giant ZTE buy component parts from the U.S.

The measure also includes an amendment to bar the USA military from providing aerial refueling support for the Saudi-led coalition in Yemen unless Secretary of State Mike Pompeo certifies that Saudi Arabia is taking urgent steps to end the civil war in Yemen, ease the humanitarian crisis there and reduce the risk to civilians. Tuesday, he escalated that, leading the two countries further to the cliff of a trade war.

"President Trump was flat-out wrong when he chose to go easy on ZTE and allow it to start selling its technology in the United States", said Senate Democratic leader Chuck Schumer of NY.