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.