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Congress to Leave Trump’s Deal With China’s ZTE Untouched

  • ZTE language to be softened in must-pass defense policy bill
  • Move immediately sparked bipartisan pushback on Capitol Hill

Photographer: Brent Lewin/Bloomberg

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U.S. lawmakers will allow President Donald Trump’s deal with China’s ZTE Corp. to remain in place, agreeing to a key Chinese demand in the broader trade dispute between the two largest economies, three sources familiar with the matter said.

Negotiators from the Senate and House of Representatives agreed late Thursday to abandon efforts to reinstate harsher sanctions against the Chinese telecommunications-equipment maker as part of the defense policy bill, the people said. Both chambers are expected to vote on the National Defense Authorization Act next week.