Good morning. Cadence Design Systems agreed to pay more than $140 million to U.S. authorities for illegally exporting semiconductor design technology to a Chinese military university.

What they did: In resolutions with the Justice and Commerce Departments on Monday, Cadence admitted to exporting $45.3 million worth of hardware, software, intellectual property and related services to China’s National University of Defense Technology.

Background: In February 2015, the Commerce Department added the university to its entity list, restricting its ability to receive U.S. exports, for producing supercomputers that simulated nuclear explosions and other military activity.

What they’re accused of: Cadence continued to ship its technology to NUDT until April 2021, the Justice Department said, sending at least 59 exports to two front companies that it said Cadence employees knew were acting on behalf of the Chinese university. The listed violations included an instance in which employees of the company’s Cadence China unit installed hardware on NUDT’s Changsha, China, campus.

EU warns Temu on safety of products sold on its platform.

The European Commission said Temu hasn’t done enough to assess the risks of illegal products being sold online and that as a result, the China-linked e-commerce platform might be in breach of the bloc’s new digital services law.

The commission said Monday that there is a high risk consumers can find unsafe products on Temu’s website such as baby toys and small electronics. This is the next stage in a sprawling probe into Temu’s platform under the Digital Services Act—a relatively new piece of legislation that governs content online in the European Union. 

Appellate court scraps U.S. stock market surveillance funding rule.

A U.S. Securities and Exchange Commission rule governing funding for a market surveillance system known as the “Consolidated Audit Trail” was struck down by an appeals court.

The 2023 funding rule grossly exceeded the SEC’s initial estimates and cut against an earlier rule requiring broker-dealers and industry self-regulators, such as the New York Stock Exchange, to split costs, a three-judge panel for the U.S. Court of Appeals for the Eleventh Circuit in Atlanta said in a ruling on Friday.

• The Justice Department has fired two of its most senior antitrust enforcers after internal disagreements over how much discretion their division should have to police mergers and other business conduct that threatens competition.
   
• The Trump administration is considering a plan to raise tens of billions of dollars with a new fee that would transform the patent system, a radical move that would likely fuel pushback from businesses.
   
• The U.S. Treasury has named Venezuela’s Cartel de los Soles as a Specially Designated Global Terrorist organization, alleging the criminal network is headed by President Nicolás Maduro and provides material support to foreign terrorist organizations threatening U.S. security.
   
• The European Commission will investigate Abu Dhabi National Oil Co.’s 11.7 billion-euro ($13.74 billion) acquisition of German chemical company Covestro, citing concerns surrounding subsidies.
   
• Verizon is tightening up its return-to-office policy amid a move to bigger offices in Manhattan, requiring management and corporate employees approved for hybrid work to report to the office three days a week, beginning the day after Labor Day.
   
• An associate of Russian industrial tycoon Oleg Deripaska must face sanctions evasion charges, a U.S. appeals court said, rejecting her bid from abroad to have the criminal case dismissed.

Companies welcome EU-U.S. trade deal as least bad outcome.

Business leaders on both sides of the Atlantic breathed a sigh of relief that the U.S. and European Union had averted a bruising trade war with their agreement on tariffs and investment. Now attention is shifting to assessing the deal’s winners and losers.

In Monday trade, U.S. energy companies, including producers of liquefied natural gas, got a bump, with shares of Cheniere Energy and Venture Global edging up. European automakers, including BMW and Mercedes, fell.

• How Trump Got the Upper Hand Over the EU on Tariffs
• Trump Strikes a Trade Deal With the EU. The U.S. Meets With China Next.
• Trade Between the U.S. and EU Is Massive. We Break It Down.
• Trump’s Tariffs: Where He Started, What He Threatened, Where He Ended Up

• Japan is playing down the risks from its trade deal with President Trump after the White House said the U.S. would direct $550 billion in investments by Japan and keep 90% of the profit.
   
• The leaders of Thailand and Cambodia have agreed to an “unconditional cease-fire” set to go into effect at midnight following five days of deadly clashes over their disputed border, Malaysian Prime Minister Anwar Ibrahim said Monday.
   
• President Trump said he would give Russian President Vladimir Putin 10 or 12 days to reach a cease-fire with Ukraine or face more economic pressure from the U.S., as he seeks to bring the Russian leader to the negotiating table.
   
• As major home insurers flee storm-ravaged markets, Demotech’s ratings enable smaller ones to step in.

• The European Union has promised President Trump a $750 billion shopping spree on American energy. Making good on that pledge will be a tall order.
   
• Samsung Electronics will manufacture artificial-intelligence chips for Tesla in Texas under a $16.5 billion multiyear deal.
   
• Shareholders in Wise, a rare U.K. tech success, have voted in favor of moving its main stock listing to New York and extending dual-class shares by a decade.
   
• The truck-based missile launchers known as Himars have transformed the battlefield in Ukraine. Now, the decades-old High Mobility Artillery Rocket System is getting an upgrade that could be crucial in another potential conflict—one with China.

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