Senate Minority Leader Chuck Schumer said Tuesday that President Donald Trump has "put China, not the United States, first" if reports were true that Chinese company ZTE Corp. signed an agreement that would lift a Commerce Department ban on buying from U.S. suppliers.
"By letting ZTE off the hook, the president who roared like a lion is governing like a lamb when it comes to China," the New York Democrat said on Twitter. "Congress should move in a bipartisan fashion to block this deal right away."
Citing "sources familiar with the matter," Reuters disclosed Tuesday that ZTE could soon be allowed to buy the U.S. products.
The telecommunications equipment maker has been on life support since a seven-year U.S. ban was imposed in April, breaking a 2017 agreement reached after it was caught illegally shipping goods to Iran and North Korea.
ZTE ceased major operations earlier this year because of the ban.
However, Commerce Department spokesman James Rockas told Reuters that "no definitive agreement has been signed by both parties."
ZTE also did not immediately respond to requests for comment.
According to Reuters, the preliminary deal includes a $1 billion fine against ZTE plus $400 million in escrow for any future violations, sources said.
The terms, they said, were in line with Reuters reporting on the U.S. demands Friday.
The Commerce Department plans to amend its settlement agreement from last year and count the $361 million ZTE paid as a part of that, allowing the U.S. to claim a total penalty of as much as $1.7 billion, the sources told Reuters.
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