Senate and House negotiators removed from a must-pass defense bill a legislative attempt to undo President’s Donald Trump’s deal with Beijing to save Chinese telecommunications giant ZTE Corp., which has been deemed a sanctions violator and a threat to national security by U.S. officials, according to people familiar with the matter.

Supporters were unable to muster the support of the Republican leadership needed to overturn the president’s initiative, which lifted a ban on U.S. companies selling components to the Chinese business. Because ZTE 763, -0.22% depends on U.S. suppliers, the move was effectively a death knell for the company.