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