07.23.18

Senator David Perdue On ZTE Procurement Ban In Final Defense Bill

WASHINGTON, D.C. – U.S. Senator David Perdue (R-GA) comments on the final FY2019 National Defense Authorization Act Conference Committee Report, which includes Senator Perdue’s amendment to preserve the Commerce Department’s export control authority and prohibit the federal government from purchasing ZTE and Huawei products:

“The global business community took notice when our Commerce Department issued its harshest penalty ever on ZTE for violating our country’s sanctions. Congress didn’t need to muddy the waters by halting the penalty, which could have negatively impacted on-going negotiations pertaining to trade and sanctions enforcement. We were able to get this resolved in the final defense bill. ZTE will continue to be punished, and the government procurement ban on ZTE and Huawei products will stay intact. Overall, this is win for the United States, not for ZTE.” 

Senator Perdue, a member of the Senate Armed Services Committee, was selected to serve on the defense bill conference committee where he worked to find common ground on how the federal government should reprimand ZTE for violating U.S. sanctions. Since the Commerce Department levied its fine, Senator Perdue has been engaged with Congress and the White House to keep the penalty intact and preserve the government procurement ban.

The Commerce Department’s penalty on ZTE includes:  

  • Nearly $1.8 billion in fines
  • Complete removal of existing ZTE corporate board and leadership
  • An independent compliance coordinator employed at ZTE’s expense to monitor ZTE compliance for the next 10 years with no limitation on information sharing between the compliance coordinator and U.S. federal government agencies
  • 10-year probation period that includes a U.S government appointed independent compliance department to ensure ZTE compliance with all U.S export control laws

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Senator Perdue is the only Fortune 500 CEO in Congress and is serving his first term in the United States Senate, where he represents Georgia on the Armed Services, Banking, Budget, and Agriculture Committees.