White House economic adviser Larry Kudlow said Sunday resumption of trade talks between the U.S. and China “is a very big deal,” but acknowledged there is no immediate prospect for an agreement between the world’s two largest economies.
“The talks will go on for quite some time,” Kudlow told the Fox News Sunday interview show.
He said the countries had reached agreement on 90 percent of a new deal by early May, before talks broke down in what has turned out to be a seven-week stalemate. U.S. President Donald Trump and Chinese President Xi Jinping agreed Saturday on the sidelines of the Group of 20 economic summit in Japan to restart negotiations.
But Kudlow assessed that “the last 10 percent could be the toughest,” with such unresolved issues as cyberattacks, Chinese demands that U.S. companies turn over proprietary technology they use, Chinese government support for its companies and the sale of U.S. technology components to the giant Chinese multinational technology giant Huawei.
Trump agreed in his meeting with Xi to ease sales of some U.S.-made components to Huawei, a policy change that some of Trump’s Republican colleagues in the U.S. disagree with because they contend that Huawei can insert Chinese intelligence eavesdropping chips in their consumer products sold overseas. Sen. Marco Rubio of Florida called it a “catastrophic mistake.”
Kudlow said he realizes “there are national security concerns” with sales to Huawei. “We will look at this carefully,” Kudlow said, adding that Trump’s easing of sales of components to Huawei “is not a general amnesty.”
Trump, in a series of Twitter comments, said, “I had a great meeting with President Xi of China yesterday, far better than expected. I agreed not to increase the already existing Tariffs that we charge China while we continue to negotiate. China has agreed that, during the negotiation, they will begin purchasing large amounts of agricultural product from our great Farmers. At the request of our High Tech companies, and President Xi, I agreed to allow Chinese company Huawei to buy product from them which will not impact our National Security.”
I had a great meeting with President Xi of China yesterday, far better than expected. I agreed not to increase the already existing Tariffs that we charge China while we continue to negotiate. China has agreed that, during the negotiation, they will begin purchasing large…..
— Donald J. Trump (@realDonaldTrump) June 29, 2019
He said the U.S. relationship with China “continues to be a very good one. The quality of the transaction is far more important to me than speed. I am in no hurry, but things look very good! There will be no reduction in the Tariffs currently being charged to China.”
….again with China as our relationship with them continues to be a very good one. The quality of the transaction is far more important to me than speed. I am in no hurry, but things look very good! There will be no reduction in the Tariffs currently being charged to China.
— Donald J. Trump (@realDonaldTrump) June 29, 2019
China Daily, an English-language daily Beijing often uses to relay messages, agreed with Kudlow’s assessment that a trade agreement is not close.
“Even though Washington agreed to postpone levying additional tariffs on Chinese goods to make way for negotiations, and Trump even hinted at putting off decisions on Huawei until the end of negotiations, things are still very much up in the air,” the Chinese Daily editorial published late Saturday said.
“Agreement on 90 percent of the issues has proved not to be enough, and with the remaining 10 percent where their fundamental differences reside, it is not going to be easy to reach a 100-percent consensus, since at this point, they remain widely apart even on the conceptual level,” the editorial said.