Senators, House Democrats Pan Administration's Softening on ZTE Export Ban

A Republican senator who opposed Donald Trump during the primary campaign and the Senate minority leader both reacted to New York Times reporting that the administration will roll back the seven-year export ban on Chinese telecommunications equipment giant ZTE. Sen. Marco Rubio, R-Fla., tweeted a link to the story, and said it is a great deal for China. China "crushes U.S. companies with no mercy & they use these telecomm companies to spy & steal from us. Many hoped this time would be different. Now Congress will need to act," he said.

Sen. Chuck Schumer, D-N.Y., put out a statement a few hours later. “If the administration goes through with this reported deal, President Trump would be helping make China great again. Simply a fine and changing board members would not protect America’s economic or national security, and would be a huge victory for President Xi, and a dramatic retreat by President Trump. Both parties in Congress should come together to stop this deal in its tracks.” Amendments that would curtail the president's ability to change ZTE's penalty for selling technology to North Korea and Iran have moved through Congress this week (see 1805220071).

Revisiting the penalties on ZTE is "a very bad look," according to the top Democrat on the House Ways and Means Committee and the top Democrat on its Subcommittee on Trade -- especially given Trump business interests in Asia. Rep. Richard Neal, D-Mass., and Rep. Bill Pascrell, D-N.J., respectively, alluded to press reports that an Indonesian theme park/golf club development that will include Trump-branded properties recently gained a Chinese state-owned firm as a partner. "Don't sell America out and don't sell America short. The current trajectory of your administration's plans risks doing both," they wrote in a letter to the president sent May 23. "Settling for a deal to sell substantially more commodities and natural resources to China, without leveling the terms of competition in high value, cutting-edge sectors, is effectively to roll over and cede the future to China."