Republicans in the United States Congress have accepted to leave out some provisions of the must-pass defense bill, which would have reinstated the seven-year ban on Chinese tech giant ZTE Corp. from purchasing components made in the US, media reported on Friday. On the other hand, lawmakers included an amendment which strengthens the inter-agency Committee on Foreign Investment in the United States (CFIUS), a body which determines if a merger or stock purchase involving a foreign company poses a threat to national security.
The version of the bill that already passed in the Senate would have reinstated a full US ban on ZTE, however, the bill is now being reconciled, and a new vote in both houses is due next week. According to the watered-down bill, ZTE would be allowed to do business with private US companies, while being fully restricted from making deals with the US government.
Last week, US Department of Commerce lifted a seven-year ban on ZTE, imposed in April, after it agreed to pay a $1.4 billion fine. The company was accused by the US of violating its trade embargo against Iran and North Korea, by selling American-made components to those countries.
