The US Senate has approved a measure that will reinstate the ban on ZTE doing business with American firms, the Wall Street Journal reports, which would overturn the deal President Trump struck with the telecommunications firm earlier this month.
Senators also included support for restrictive measures on other Chinese tech firms that pose a national security threat to the US, such as Huawei.
The measure was included in the annual defense bill that will now go to the House of Representatives for further review. The two houses must reach an agreement on the terms of the bill before passing it on to the executive.
Trump is set to meet with Senate lawmakers on Wednesday to discuss the measure and advocate conditions that allow ZTE to resume business.