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BUSINESS & TECH

Congress Can Do Little To Derail Trump’s ZTE Decision, Observers Say

A pedestrian passes a ZTE building in Beijing on May 8. Photo: IC
A pedestrian passes a ZTE building in Beijing on May 8. Photo: IC

The U.S. Congress can do little to stop President Donald Trump’s decision to relax penalties on ZTE Corp., China’s second-largest telecommunication-equipment maker, industry watchers said.

The U.S. Commerce Department said Thursday that ZTE had agreed to pay a $1 billion fine, replace its board and senior management, and allow the U.S. to send in a compliance team. This is in exchange for the lifting of a seven-year ban imposed in April that prevents the company from buying American products, which sent a shock wave through the Chinese technology sector and immediately brought ZTE’s major operations to a halt.

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