ZTE Shares Plunge 40% as Congress Threatens to Block Deal With Trump

WASHINGTON — The Trump administration signaled on Wednesday which the item will try to block any effort by Congress to interfere with its plan to throw a lifeline to ZTE, the Chinese technology company which the United States government has penalized for violating sanctions.

The Department of Commerce brokered a settlement with ZTE This kind of month after Chinese President Xi Jinping asked President Trump to issue a softer penalty which might not put the company out of business. Republicans in addition to Democrats in Congress have been working on legislation which might undermine which agreement in addition to impose a stiffer punishment on ZTE.

The White House said on Wednesday which the current agreement “will ensure ZTE pays for its violations in addition to gives our government complete oversight of their future activity without undue harm to American suppliers in addition to their workers.”

Lawmakers have been working to attach legislation on ZTE to an upcoming National Defense Authorization Act measure which can be required to pass from the Senate. Hogan Gidley, a White House spokesman, suggested which such a move might undermine the authority of the executive branch.

A reversal of the agreement might probably exacerbate tensions between the United States in addition to China. ZTE’s problems are caught up in a broader threat by the United States to levy tariffs on $150 billion in Chinese-made goods amid accusations which China’s trade practices are unfair. China has vowed to retaliate, leading to worries of a potential trade war.