Earlier this year, the US banned ZTE from working with US companies after the firm shipped US-made parts to Iran and North Korea and then lied about giving executives involved in the deals large bonuses. But in June, the Commerce Department announced that it and the Trump administration had come to an agreement with ZTE and sanctions would be lifted as long as the company paid a $1 billion penalty, put $400 million in escrow, installed new directors and embedded a US-selected corporate monitor.

US lawmakers, however, weren't satisfied with the deal and Senator John Cornyn (R-TX) told the Wall Street Journal last month, "China is using its telecommunications companies as means to conduct espionage. We need to solve the larger puzzle of trade and national security in addition to the enforcement action for the violation of sanctions." The Senate later voted 85 to 10 to reinstate sanctions. But while lawmakers have debated how to deal with ZTE, the company has been working to comply with Trump's deal. It replaced its CEO and other executives, installed a new board of directors, signed an escrow agreement with the Commerce Department, paid its fine and installed a US-chosen monitor. Because ZTE has now completed all requirements, the Commerce Department officially lifted the ban last week.

In exchange for backing off on the ZTE sanctions, lawmakers agreed to give CFIUS more authority over deals between foreign investors and US businesses. The committee reviews foreign investments in US companies, gauging whether they represent a threat to national security, and can advise the president to block deals whenever they're found to pose a threat. It argued against the takeover of Qualcomm by Broadcom earlier this year. The language included in the National Defense Authorization Act will give CFIUS the ability to intervene in more cases than it can now.

But some Senators aren't pleased. Chuck Schumer (D-NY) said the backtrack on ZTE is an example of the president "being weak in the face of another nation's leader while the GOP just follows along." And Senator Marco Rubio (R-FL), who was a proponent of ZTE sanctions, tweeted that the deal was a "#BadTradeoff."

The admin's backtrack on ZTE is another example of @POTUS being weak in the face of another nation's leader while the GOP just follows along. @realDonaldTrump has once again broken his core promise to be tough on China simply to please President Xi & he got nothing in return. — Chuck Schumer (@SenSchumer) July 20, 2018