WASHINGTON – Today, President Trump’s Commerce Department banned U.S. companies from selling components to ZTE Corporation after the Chinese telecom giant violated terms of a March 2017 sanctions violations case. Congressman Robert Pittenger (NC-09) started working in April 2016 to urge the Commerce Department to punish ZTE for violating U.S. law by selling embargoed equipment to Iran. His efforts culminated in an $890 million fine imposed by Commerce Secretary Ross in March 2017.
“A nearly $1 billion fine wasn’t enough to get China’s ZTE to play by the rules,” said Congressman Pittenger. “President Trump is standing up for America, the rule of law, and human rights today by banning U.S. sales to ZTE. He understands what many do not. China does not play by our rules, and we must be vigilant against Chinese threats to both our economic security and national security. The coddling by previous administrations has turned China from a garden snake into a boa constrictor.”
In 2012, ZTE violated U.S. export controls by selling embargoed equipment which would enable the Iranian government to monitor and control all electronic communication within its borders. This case was settled with the $890 million fine imposed in March 2017. Recently, the Commerce Department became aware that ZTE Corporation had violated terms of the March 2017 agreement, leading to today’s seven-year ban on U.S. companies selling components to ZTE. Congressman Pittenger is currently advancing bipartisan national security legislation to strengthen the U.S. review process for foreign investments which threaten national security. His Foreign Investment Risk Review Modernization Act, introduced in partnership with Senate Majority Whip John Cornyn, has been endorsed by The White House, Defense Secretary Mattis, Treasury Secretary Mnuchin, Attorney General Sessions, and Commerce Secretary Ross.
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