Van Hollen Secures Language in Bipartisan Banking Bill to Block Trump From Walking Back ZTE Sanctions
Today U.S.
Senator Chris Van Hollen secured language in the bipartisan Foreign Investment
Risk Review Modernization Act of 2017 to expressly prohibit the President from
changing the penalties on Chinese telecommunication companies — including ZTE —
that have sanctions levied against them until the Administration certifies to
Congress that they have met certain conditions.
In light of the
President’s announcement that he has directed the Department of Commerce to
look at easing penalties imposed on the China-based company ZTE for violations
that include selling sensitive U.S. technologies to Iran and North Korea in
violation of U.S. sanctions laws, this could not come at a more important time.
The reported negotiations of a possible resolution between the United States
and China on ZTE do nothing to address the fact that the Chinese-based company
has repeatedly violated our laws, failed to comply with U.S. investigations,
and poses a serious and grave threat to our national security.
“We know ZTE is
a repeated and flagrant violator of U.S. laws – there’s absolutely no question
of their culpability. Yet the President of the United States is fighting to
protect jobs in China at a company that may be spying on Americans and has been
sanctioned by our government. This is deeply troubling, regardless of your
political party,” said Senator Van Hollen. “I want to thank my
colleagues on both sides of the aisle for working with me on this amendment, as
well as language in the managers’ amendment putting Congress on the record in
opposition to this. We must continue to work to stop the President from
absolving ZTE of its many transgressions in the interest of Chinese jobs.”
The Senator’s
amendment would expressly prohibit the President from changing the penalties on
Chinese telecommunication companies that have sanctions levied against them
until the Administration certifies to Congress that the entity is no longer
violating U.S. law, has not done so for a year, and is fully cooperating with
investigators. Additionally, the managers’ amendment includes Senator Van
Hollen’s sense of Congress that penalties imposed on an individual or entity
pursuant to a determination that the individual or entity has violated U.S.
sanctions laws or export controls should not be modified for reasons that are
unrelated to national security. Both passed with bipartisan support.
The full text of
the amendment is below.
Sec ____.
PROHIBITION ON MODIFICATION OF CIVIL PENALTIES UNDER EXPORT CONTROL AND
SANCTIONS LAWS.
(a) IN GENERAL.
- Notwithstanding any other provision of law, the Executive Office of the
President may not modify any civil penalties, including denial orders,
implemented by the Government of the United States with respect to Chinese
telecommunication companies pursuant to a determination that the companies have
violated an export control or sanctions law of the United States until the date
that is 30 days after the President certifies to the appropriate committees of
Congress that the individual or entity -
(1)
has not, for a period of one year, conducted activities in violation of the
laws of the United States; and
(2) is fully cooperating with
investigations into the activities of the individual or entity conducted by the
Government of the United States, if any.
(b) APPROPRIATE
COMMITTEES OF CONGRESS DEFINED. - In this section, the term "appropriate
committees of Congress" means -
(1)
the Committee on Banking, Housing, and Urban Affairs and the Committee on
Foreign Relations of the Senate; and
(2)
the Committee on Financial Services and the Committee on Foreign Affairs of the
House of Representatives.
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