China and the Trump administration look closer to resolving a dispute that saw electronics company ZTE Corp. banned from access to U.S. technology, although any deal may yet be impeded by Congress.

The dispute relates to a seven-year ban imposed by the U.S. Commerce Department in April after ZTE was accused of breaching a settlement in regards to a finding that it had sold U.S. technology to banned countries. Despite paying $1.19 billion fine as part of an agreement to avoid a ban, the company was then accused of breaching the terms by not reprimanding senior employees.

The ban forbids U.S. companies from supplying ZTE with components, including technology from Qualcomm Inc. and Intel Corp. that is not easily replaceable. As a result, the company announced May 9 that it was ceasing operations.

Under a new proposal, President Trump has floated a plan to impose a new fine ZTE with a concrete agreement that will include a shake up its management in return for rolling back the ban on using U.S. technology, according to Reuters.

As was suggested when President Trump first intervened in the matter May 14, a deal relates directly to trade negotiations with China, with the middle kingdom saying Monday that the two countries had called a truce on what was shaping up to be a major trade war.

That “truce” may be short-lived, since President Trump said earlier today that he was “not really” pleased with the progress of the talks so far. But that may be the least of the issues relating to ZTE, because Congress is hindering attempts by the administration to sign off on a deal.

According to The Hill, the Senate Banking Committee voted 23-2 on an amendment that would block Trump from easing sanctions on ZTE without first certifying to Congress that the company is complying with U.S. law.

That wouldn’t necessarily prohibit a deal but likewise it would also make the prospects of having a deal go through harder, particularly given that congressional members on both sides have been outspoken against Chinese tech firms.

“If the president and his team won’t follow through on tough sanctions against ZTE, it’s up to Congress to ensure that it happens,” Senate Minority Leader Charles Schumer said in a statement. On the amendment, Schumer added that it was a huge step “forward in our fight against the Chinese.”

Photo: johnkarakatsanis/Flickr