Act puts weaker controls than the initial draft on US government contracts with China’s ZTE Corp and Huawei firms, but bolsters foreign investment reviews
The U. S. House of Representatives on Thursday passed a sprawling $716 billion defense authorization bill that also aims to rein in China’s investments in the United States and prohibits the U. S. government from using technology from major Chinese telecommunications firms.
The John S. McCain National Defense Authorization Act, which must also be approved by the Senate, passed the House by a vote of 359-54. While the measure puts controls on U. S. government contracts with ZTE Corp and Huawei Technologies Co Ltd because of national security concerns, the restrictions are far weaker than initially drafted.
It also strengthens the Committee on Foreign Investment in the United States (CFIUS), which reviews proposed foreign investments to weigh whether they present national security concerns.
The White House praised the House passage of the legislation and for including a pay raise for military troops.
„It also takes positive steps that are consistent with the Administration’s commitment to maintaining a strong and resilient manufacturing and defense industrial base,“ Sarah Sanders, the White House press secretary, said in a statement.
The sprawling piece of legislation — which is necessary to approve ongoing military operations — has historically enjoyed strong bipartisan support.
The strength of sanctions against ZTE Corp have waned.
