Photo: Cheriss May/NurPhoto via Getty Images

Commerce Secretary Wilbur Ross told CNBC on Thursday morning that U.S. negotiators have "executed a definitive agreement with ZTE."

Why it matters: Compromise with ZTE — a repeat violator of U.S. sanctions against Iran and North Korea and a company identified as a national security threat by the Pentagon — could set a dangerous precedent for trade negotiations with China.

"At about 6 a.m. this morning, we executed a definitive agreement with ZTE. And that brings to a conclusion this phase of the development with them."
— Wilbur Ross

Worth noting: President Trump announced in a tweet on May 25 that a deal had been reached.

The details:

  • The Commerce Department announced that the terms of the agreement include a $1 billion fine against ZTE plus $400 million in escrow to cover any future violations in exchange for the U.S. lifting its ban.
  • "These penalties are in addition to the $892 million in penalties ZTE has already paid to the U.S government under the March 2017 settlement agreement," the Department said.
  • ZTE will also have to "retain a team of special compliance coordinators selected by and answerable to" the Department for 10 years.

The backdrop: China lobbied for a compromise on ZTE after the Commerce Department issued a 7-year ban on American companies selling parts to the Chinese company, which led to its effective shutdown. The ban was put in place to punish ZTE for selling products with American parts to North Korea and Iran.

Go deeper: How ZTE could change the game for the other, bigger Chinese phone maker under U.S. scrutiny

Go deeper

Updated 53 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 11 a.m. ET: 31,937,244 — Total deaths: 977,624 — Total recoveries: 22,013,874Map.
  2. U.S.: Total confirmed cases as of 11 a.m ET: 6,937,145 — Total deaths: 201,959 — Total recoveries: 2,670,256 — Total tests: 97,459,742Map.
  3. Health: The coronavirus is surging again — Johnson & Johnson begins large phase 3 trial — The FDA plans to toughen standards.
  4. Media: Pandemic spurs journalists to go it alone via email.
  5. Technology: The tech solutions of 2020 may be sapping our resolve to beat the coronavirus
  6. Sports: Here's what college basketball will look like this season.
Updated 2 hours ago - Politics & Policy

Republicans condemn Trump's refusal to commit to peaceful transfer of power

Photo: Joshua Roberts/Getty Images

A number of prominent Republican lawmakers addressed President Trump's refusal on Wednesday to commit to a peaceful transfer of power if he loses November's presidential election.

Driving the news: Senate Majority Leader Mitch McConnell tweeted, "The winner of the November 3rd election will be inaugurated on January 20th. There will be an orderly transition just as there has been every four years since 1792."

3 hours ago - Technology

Pandemic spurs journalists to go it alone via email

Illustration: Aïda Amer/Axios

A slew of high-profile journalists have recently announced they are leaving newsrooms to launch their own, independent brands, mostly via email newsletters.

Context: Many of those writers, working with new technology companies like Substack, TinyLetter, Lede, or Ghost, have made the transition amid the pandemic.

Get Axios AM in your inbox

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Subscription failed
Thank you for subscribing!