The bipartisan amendment would reimpose penalties on ZTE for violating US sanctions against exporting to Iran and North Korea that the Trump administration sought to lift in exchange for the company paying a $1 billion fine and funding an in-house compliance team of USA officials.
An amendment sponsored by Sens. In addition, within 180 days, ZTE must post calculations of the USA components in its products on its website in Chinese and English. ZTE plead guilty to conspiring to violate U.S. sanctions against Iran and North Korea in a USA court past year.
Republican and Democratic lawmakers introduced the amendment last week.
The vote follows a tumultuous few months for ZTE.
"The fact that a bipartisan group of senators came together this quickly is a testament to how bad the Trump administration's ZTE deal is and how we will not shy away from holding the president's feet to the fire when it comes to keeping his promise to be tough on China", Schumer said.
The Senate amendment would also ban government agencies from buying or leasing telecommunications equipment and services from ZTE and Chinese telecom firm Huawei, as well as banning the government from providing loans to or subsidizing either company.
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However, in May the president tweeted that he was working with China to keep ZTE running and hoped a deal would prevent "too many jobs in China" from being lost.
Commerce Secretary Wilbur Ross told CNBC at the time that ZTE would replace its management team and board and embed a new department for compliance with the U.S.
ZTE has more than a dozen senior vice presidents, which is a level below executive vice president, said the company source who declined to be identified as they were not authorized to speak to the media. The amendment also bans USA government agencies from buying or leasing equipment from ZTE and its Chinese rival, Huawei, and bars US loans to the companies. He said the threat posed by the mobile phone giant and its rival, Huawei, "is too great to ignore". Marco Rubio (R-Fla.), another chief backer of the amendment.
Senate Majority Leader Mitch McConnell (R., Ky.) said that passing the defense measure is at the top of his to-do list this week. "And we'll tackle it this week".
Visitors pass in front of the Chinese telecom giant ZTE booth February 26 at the Mobile World Congress in Barcelona.