On CNBC now
ZTE deal:
- Imposes the most strict compliance
- Create compliance component into the company
- Replace entire mgt and board within 30 days
- Enforcement is about punishment and disincentivise bad actors
- $1.0B fine, put $400 million in escrow if they violate the deal
- ZTE deal is separate against China trade issues
- ZTE action should be a deterrent for others
- ZTE sells a lot of phones to US and buys parts from Qualcomm and others. Went into consideration
- ZTE deal not expected to impact China trade talks
- Sees GDP well into the 3% as doable
- The tariffs will have less than 1% effect on GDP
- Needed to invoke national security globally to enact tariffs.