Growing backlash in Congress to easing sanctions against ZTE

WASHINGTON — Lawmakers are moving to thwart Trump administration efforts to ease restrictions on Chinese telecommunications giant ZTE Corp. and other sensitive technology, citing fears the positions would compromise national security in the latest twist in trade negotiations between the world’s largest economies.

The Senate Banking Committee unanimously approved legislation on Tuesday that would tighten national-security reviews of Chinese technology deals by the interagency Committee on Foreign Investment in the U.S., strengthen export controls and prohibit the Trump administration from lifting stiff penalties imposed on ZTE.

The U.S. and China recently agreed on the broad outlines of a deal that would allow U.S. companies to once again supply ZTE with components, lifting a ban that threatens to put the company out of business. The U.S. has accused the company of failing to punish employees who violated sanctions against Iran and North Korea, but President Donald Trump recently held out the prospect of a reprieve in a gesture to Chinese President Xi Jinping.

Also on Tuesday, a bipartisan group of 27 senators urged the heads of the U.S. trade representative’s office and Treasury and Commerce departments to reject any proposals to ease export controls on technology as a way to boost sales to China.

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