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Fox News 18 Jan 2020

White House touts phase one of China trade deal: 'This is historic'

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Director of the National Economic Council Larry Kudlow explains phase one of the China trade deal on 'America's Newsroom' and says the administration will move 'immediately' to phase two.


After more than two years of escalating tarrifs and a seemingly never-ending trade war, the US and China have agreed on a first step towards a truce.
If it holds, it could be a boost for U.S. President Donald Trump in an election year.
But who will benefit the most from this initial phase of a broader trade agreement?
China has promised to open up its markets and buy more US goods.
In exchange, the US will lift some tarrifs. Yet most will stay in place - and that's where the problems start.
So, could this really be the beginning of the end of the trade war between the US and China?
Presenter: Richelle Carey
Guests
Dan Wang, analyst for the Economist Intelligence Unit's Access China Service.
Hosuk Lee-Makiyama, Director of the European Centre for International Political Economy and a former Swedish Representative to the World Trade Organization.
Phil Caruso, Member of the Defense Council at the Truman National Security Project and a former Intelligence officer in the US Air Force.
The White House and Senate leaders reached a deal early Wednesday morning on a massive stimulus package they hope will keep the nation from falling into a deep recession because of the coronavirus crisis.

The revamped Senate proposal will inject approximately $2 trillion into the economy, providing tax rebates, four months expanded unemployment benefits and a slew of business tax-relief provisions aimed at shoring up individual, family and business finances.
The deal includes $500 billion for a major corporate liquidity program through the Federal Reserve, $367 billion for a small business loan program, $100 billion for hospitals and $150 billion for state and local governments.
It will also give a one-time check of $1,200 to Americans who make up to $75,000. Individuals with no or little tax liability would receive the same amount, unlike the initial GOP proposal that would have given them a minimum of $600.

The agreement caps five days of intense negotiations that started Friday morning when Senate Majority Leader Mitch McConnell (R-Ky.) convened Republican and Democratic colleagues, with talks stretching late into the evening each of the following four days.
"At last we have a deal. ... the Senate has reached a bipartisan agreement," McConnell said during a speech on the Senate floor after 1:30 a.m. on Wednesday, pledging that the Senate would pass the package later in the day.
Senate Democratic Leader Chuck Schumer (N.Y.) hailed the legislation as "the largest rescue package in American history."


You can
After Hours catches up with Chanel Rion -- the Chief White House Correspondent for One America News -- to talk about the latest developments taking place at the White House.
Vice President Pence and the coronavirus task force hold a briefing at the White House amid the spread of coronavirus across the United States.

… show captions ↓
NEGOTIATOR SENDING PHASE ONE
NEXT DOOR AT THE WHITE HOUSE.
YOU'LL SEE IT LIVE WHEN IT
HAPPENS.
CHINA PROMISING TO BUY MORE
AMERICAN PRODUCTS WITH AN
ADDITIONAL $200 BILLION OVER THE
NEXT TWO YEARS.
SPEED IN EXCHANGE, THE U.S. WILL
EASE SOME TARIFFS WHILE LEAVING
OTHERS IN PLACE WHILE THEY SIGN
OFF ON PHASE TWO.
LET'S GO TO OUR HEADLINER,
LARRY KUDLOW, DIRECTOR OF THE
NATIONAL ECONOMIC COUNCIL.
THANK YOU FOR BEING HERE ON
"AMERICA'S NEWSROOM."
>> GOOD MORNING, THANKS TO BOTH
OF YOU.
I'M SORRY WERE BREAKING UP, BUT
I'M SURE YOU WILL STILL BE
FRIENDS.
[LAUGHTER]
>> Bill: INDEED WE SHALL.
>> Sandra: HOW WILL AMERICANS
BE BETTER OFF AFTER THIS IS
SIGNED THIS MORNING?
PHASE ONE OF THE CHINA TRADE
DEAL?
SPEAK AT ONE THE KEY POINTS
BESIDES UNLAWFUL TRADING
PRACTICE, WE WILL ASK FOR.
WE WILL SELL TO CHINA A TON OF
GOODS AND SERVICES AND
MANUFACTURERS AND ENERGY AND
FARM COMMODITIES.
THE OVERALL BALLPARK NUMBER IS
$200 BILLION IN EACH OF THE NEXT
TWO YEARS.
WE ARE THE MOST COMPETITIVE
ECONOMY IN THE WORLD.
THE PRESIDENT HAS WORKED HARD TO
DEFEND THE AMERICAN ECONOMY AND
THE AMERICAN WORKER FROM
INJUSTICES.
THIS IS A ONE-TIME, HISTORIC,
NEVER-HAPPENED-BEFORE TRADE
DEAL.
IT WILL BENEFIT INCOMES,
INDIVIDUAL AREAS, BAG AND
MANUFACTURING AND FINANCIAL
SERVICES AND TECHNOLOGY, AND
IT'S GOING TO HELP GROW OUR
ECONOMY FASTER.
WE RECKON IN 2020 AND 2021, AT
LEAST HALF A POINT OF ADDITIONAL
GDP, WHICH WILL PROBABLY
TRANSLATE INTO, WHAT, ANOTHER
MILLION JOBS ON TOP OF WHAT
WE'VE ALREADY GOT?
>> Bill: JUST TO LET YOU KNOW,
WE GET INTERRUPTED BY
SPEAKER PELOSI, SO PLEASE
UNDERSTAND THAT.
>> AND PROMOTING AND DUMB LIKE
TREATING A GROWTH AND
PROSPERITY, SHE'S PROMOTING
SOMETHING ELSE.
BUT I UNDERSTAND YOU HAVE
DUTIES.
>> Bill: THANK YOU FOR THAT.
WE LOOK FORWARD TO SEE WHAT IS
HAPPENING NEXT SUMMER.
WHAT THEN, LARRY, HIS LOVE TO BE
DONE?
HOW BIG OF A HILL IS THAT?
>> TWO THINGS REAL QUICK.
NUMBER ONE, THE BIGGEST HILL WAS
GETTING PHASE ONE.
WHICH HAS NEVER BEEN DONE BEFOR
BEFORE.
THE PRESIDENT'S LEADERSHIP
INCLUDING THE TARIFFS, THE WORK
OF BOB LIGHTHIZER,
STEVE MNUCHIN, OUR HOLE TRADE
PRINCIPAL'S TEAM.
DONE BEFORE
TO YOUR QUESTION, WE MOVE INTO
PHASE TWO IMMEDIATELY.
THE PRESIDENT WILL BE SPEAKING
WITH THE VICE PRESIDENT AND
OTHERS TO ANNOUNCE THAT.
I WOULD SAY TO YOU PROBABLY THE
TOUGHEST NUT TO CRACK IN PHASE
TWO WILL BE TO REALLY LEVEL THE
PLAYING FIELD AND TAKE CARE OF
UNFAIR PRACTICES, REGARDING
FORCED TRANSFERS OF TECHNOLOGY.
IT'S A LITERAL PROPERTY, THAT'S
AMERICA'S CREATIVITY.
THAT'S OUR FREEDOM TO PRODUCE
AND INVENT.
WE HAVE THE GREATEST IN THE
WORLD.
THEY'RE REALLY STRONG STRICTURES
AND CHANGES IN PHASE ONE,
INCLUDING CHANGING CHINESE
CRIMINAL PENALTIES.
WHICH IS A HUGE THING.
CIVIL AND CRIMINAL PROCEDURES
WILL BE CHANGED.
THAT'S A BIG PART OF THEIR
REMEDY AND A BIG CHANGE FOR THAT
WILL STILL LEAVE US, HOWEVER,
WITH ISSUES ON WHETHER THE
GOVERNMENT GIVES LICENSES TO
AMERICAN COMPANIES WITHOUT
TRYING TO STEAL OUR TECHNOLOGY
OR FORCING TECHNOLOGY TRANSFERS.
STATE SUBSIDIES TO STATE RUN
BUSINESSES AND SO FORTH, WHICH
HAS BEEN VERY UNFAIR, AND OTHER
ISSUES AROUND THAT.
THE LICENSING AND SUBSIDIES WILL
COME IN PHASE TWO.
AND THE UNLAWFUL FORCED TRANSFER
OF TECHNOLOGY.
THAT WILL BE TOUGH.
IT MAY BE DOABLE, WE'VE COME --
I THINK WE'VE GOT ALMOST HALF OF
WHAT WE ASKED FOR IT ORIGINALLY
IN PHASE ONE.
SO I REMAIN OPTIMISTIC THAT THIS
DEAL TODAY, BILL, SHOWS -- AND
THIS CAME UP, WE HAVE DINNER
WITH THE TWO TEAMS LAST NIGHT, A
SMALL DINNER -- U.S. CHINA
COOPERATION IS POSSIBLE.
IT IS POSSIBLE.
BUT HER BALANCE, RELATIONSHIPS,
TREATED IN THE ECONOMY, IT'S
POSSIBLE.
OF COURSE, JUST IN CASE, WE HAVE
VERY STRONG ENFORCEMENT
PROVISIONS.
IF COMPANIES ARE NOT SATISFIED
AND REMEDIES NOT TAKEN, WE WILL
TAKE PROPORTIONATE ACTIONS.
>> Sandra: THERE'S A DEBATE
OVER WHAT THE ACTUAL IMPACT OF
PHASE ONE WILL BE ON THE
AMERICAN ECONOMY.
DEMOCRATS, THE DNC PUT OUT, "ONE
NEW LATER FARMERS ARE WAITING
FOR THE CHINESE PURCHASES JUMP
ON THIS.
THEY STILL HAVE QUESTIONS FOR
WHAT THIS MEANS FOR AMERICA'S
FARMERS."
THERE'S ALSO A DEBATE OVER WHAT
THIS MEANS FOR MANUFACTURING IN
2020.
THAT'S ONE OF THE HOLDOUTS AS
FAR AS THE PRUDENCE IN THE
ECONOMY.
WAS NOT THERE IN 2019.
HOW CONFIDENT ARE YOU
MANUFACTURING WILL RETURN IN
2020, AND WHAT DOES IT MEAN FOR
AMERICA'S FARMERS?
>> I'M INCREASINGLY OPTIMISTIC
THAT THESE PURCHASES AND EXPORTS
WILL COME THROUGH.
THIS WAS THE HEART, THE HEAT OF
THE NEGOTIATIONS, ALONG WITH IP
THEFT.
GOSH, I HATE TO SEE PARTISAN
ANKLE BITING HERE.
I KNOW SO MANY DEMOCRATS,
DEMOCRAT FRIENDS OF MINE,
MEMBERS, ECONOMISTS, HAVE REALLY
WANTED THIS DEAL AND AGREED WITH
PRESIDENT TRUMP, WHO HAS CHANGE
THE NARRATIVE ON CHINA'S UNFAIR
TRADING PRACTICES TO SOMETHING
MORE REALISTIC TO DEFEND
AMERICAN INTERESTS.
SO I HATE TO SEE THIS.
THE DEAL IS BEING SIGNED.
THE NUMBERS ARE CLEAR, SANDRA.
YOU'VE GOT $40 BILLION TO
$50 BILLION INCREASE IN FARMING
THIS YEAR.
MANUFACTURING, WE HAVEN'T GIVEN
ENOUGH CREDIT TO THAT.
$75 BILLION IN ADDITIONAL
AMERICAN EXPORTS WILL BE
IMPORTED BY CHINA.
SERVICES COME $40 BILLION.
A LOT OF THAT IS FINANCIAL.
AND THAT ENERGY, WE ARE THE
STRONGEST ENERGY POWER IN THE
WORLD TODAY.
AS THE PRESIDENT SAID, WE DON'T
NEED MIDDLE EAST OIL.
CHINA NEEDS ARE NATURAL GAS,
THEY NEED OUR LNG, THEY NEED OUR
COAL.
$50 BILLION OF ENERGY EXPORTS.
>> Bill: NO SMALL MATTER.
A MOMENT AGO YOU SAID YOU'VE GOT
50% OR ABOUT HALF OF WHAT YOU'RE
LOOKING FOR IN PHASE ONE.
DOES THAT MEAN CHINA GOT THE
OTHER HALF?
WAS THAT, TO BORROW A PHRASE,
THE ART OF THIS DEAL FOR PHASE
ONE?
>> NO, I WOULDN'T PUT IT THAT
WAY.
NUMBER ONE, IF YOU LOOK AT THE
COMMENTARY COMING OUT OF THE
CHINESE MEDIA ORGANIZATIONS,
THEY ARE SAYING, "LOOK, THEY
DIDN'T LOSE THE DEAL, THEY KNEW
THE DEAL TO IMPROVE THEIR
CONSUMER.
THEIR ECONOMY HAS BEEN VERY
SOFT.
OUR TARIFFS HAVE HURT THEM
ENORMOUSLY, AND OTHER FACTORS.
THEY NEED IT, THEY WANT THE
AMERICAN GOODS AND SERVICES TO
HELP CHINESE ECONOMY AND THE
CHINESE CONSUMER.
IN THAT ISSUE OF 40% TO 50%, NO,
WE DIDN'T LOSE.
WE DIDN'T COMPLETE.
IN OTHER WORDS WE GOT THROUGH
PROBABLY -- AND BALLPARK
NUMBERS, BILL, WE GOT THROUGH
ABOUT HALF OF WHAT WE WANTED.
WHICH IS HALF MORE THAN ANYBODY
THOUGHT A YEAR AGO.
MORE, FRANKLY, THAN ANYBODY
THOUGHT IN PHASE ONE.
IT'S A TREMENDOUS -- AGAIN, THIS
HAS NEVER HAPPENED BEFORE.
NO TRADE AGREEMENT LIKE THIS IN
HISTORY OF U.S. CHINA RELATIONS.
LET'S CALL THE OTHER HALF IS FOR
ARGUMENTS SAKE, ROUND NUMBERS.
THAT IS LEFT TO BE DEALT WITH IN
PHASE TWO.
WE WILL GET RIGHT AT IT.
AS SOON AS THE AGREEMENT IS
SIGNED TODAY, PHASE TWO BEGINS.
>> Sandra: THAT'S GOOD BIG
PICTURE AND TALK ABOUT THE U.S.
DEFICIT TOPPING A TRILLION
DOLLARS, THE HEADLIGHTS THIS
MORNING 2019, THE FIRST TIME IN
SEVEN YEARS.
THE PRESIDENT PROMISED TO BRING
THAT DOWN, THE CORPORATE TAX,
AGGRESSIVE DEREGULATION.
WHAT'S GOING TO HAPPEN IN 2020
BUT THAT?
WHAT IS THE PRESIDENT DOING TO
BRING THAT DOWN?
>> REVENUES ARE RISING.
WE PROBABLY DO SPEND TOO MUCH.
WE'VE MADE OUR DEALS WITH
CONGRESS, BUT WE ARE TALKING
ABOUT -- I'M GOING TO SAY,
SANDRA, 5% OF GDP DEFICITS.
I THINK THAT'S VERY MANAGEABLE
AND ECONOMY THAT IS
TRANSITIONING INTO FASTER
GROWTH.
WE FED THREE YEARS,
PRESIDENT TRUMP'S POLICIES HAVE
LOWERED TAXES AND REGULATIONS
AND TRADE REFORM.
WE DIDN'T QUITE GET A 3%, WE GOT
HURT BY THE BOEING SHUT DOWN, BY
THE WAY.
IT PROBABLY COST US HALF A
POINT.
I'M JUST SAYING IN A GROWING
ECONOMY DEFICITS AROUND 5% OF
GDP ARE QUITE MANAGEABLE.
SPENDING AT 21% GDP IS QUITE
MANAGEABLE.

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