US to allow ZTE to resume some operations temporarily

The Trump administration will allow Chinese phone maker ZTE to temporarily resume some of its business operations as the U.S. government considers reneging its seven-year ban on the manufacturer doing business with American companies.

The new authorization from the Commerce Department will go from July 2 to Aug. 1, according to a document obtained by Bloomberg. The company told the outlet that it will be in compliance with U.S. demands by the end of this period.

{mosads}President Trump has said he is working to ease the penalties on ZTE that the Commerce Department imposed on the company for violating sanctions with Iran.

His move to do this has sparked heavy backlash from lawmakers on both sides of the aisle. Lawmakers last month passed the National Defense Authorization Act (NDAA) with amendments including provisions aimed at reversing Trump’s attempts to ease the penalties.

Lawmakers in favor of the harsh penalties argue that ZTE is a national security threat because of its close relations to the Chinese government. They believe the company can provide a back door into American communications.

Lawmakers have already taken steps to bar the government from taking federal contracts with ZTE and other Chinese phone makers. The Pentagon has also banned such companies from selling their products on U.S. military bases.