Republican and Democratic US senators introduced a bill on Tuesday that would re-impose sanctions on China’s ZTE if it does not comply with US laws and an agreement with the Donald Trump administration that ended restrictions on the telecommunications equipment company, Reuters reported.
ZTE is currently the fifth largest telecom equipment maker behind Huawei, Ericsson, Nokia and Samsung.
US President Donald Trump angered many members of Congress, including some of his fellow Republicans, in July when he decided to lift a ban on U.S. companies selling to ZTE, allowing the giant company to resume business.
Lawmakers have introduced several pieces of legislation since then that seek to clamp down on the company, China’s second largest telecommunications equipment maker. Most have failed to advance in the face of administration opposition.
Many members of Congress view the Chinese firm as a national security threat, worrying that the use of its technology in the United States could make it easier for China to steal secrets.
The legislation, introduced by three Republicans and three Democrats, would require reports from the Commerce Department every 90 days on ZTE’s compliance with the agreement and sharing with congressional committees ZTE audits conducted under the agreement.
If ZTE is not in compliance, it would face stiff penalties, including paying $400 million now held in escrow.
