China slams senior USA official's remarks on trade dispute

Andrew Cummings
July 21, 2018

U.S. President Donald Trump is largely perceived on Wall Street as a pro-business leader but his hard-line stance on trade could jeopardize economic gains created by his tax cuts, investors said.

Kudlow, director of the National Economic Council, sounded optimistic about the path of the US economy.

China on Wednesday said it was "shocking" for a USA official to blame Chinese President Xi Jinping for escalating trade tensions between the two countries. The United States has raised the stakes in the dispute, threatening to slap 10 percent tariffs on an extra $200 billion worth of Chinese imports, including numerous consumer items.

According to Larry Kudlow, "it's possible that a real growth cycle is in front of us for the next four, five, or six years", with the Trump administration's head economic adviser continuing, "this recovery may not be so long in the tooth".

Trump imposed the tariffs after an Office of the U.S. Trade Representative investigation concluded China was violating intellectual property rules and forcing U.S. companies operating in China to hand over technology secrets in exchange for access to the Chinese market.

Speaking on the rocky negotiations, Kudlow insisted that the USA administration was waiting on a move from Xi, saying that "the ball is in his court".

So far Trump has been vague about what exactly China needs to offer in the form of a trade deal in order for the barriers to come down, but Kudlow offered a laundry list of items that the USA would need to see in order to eliminate the tariffs. "So some of those ideas are circulating and I think will come to fruition".

"Don't blame Trump, blame China", he said. China's Xi has the power to stop the tit for tat trade war, but is not willing to do so. Liu was involved in three rounds of negotiations over trade with U.S. officials in May and June.

Mr. Kudlow said the current administration is trying to pull America out of the "growth recession" it has been mired in since at least the Y 2008 financial crisis. "We are waiting for him". He added that the ball is in President Xi's court.

Trump, speaking to reporters at the White House, said that European Commission President Jean-Claude Juncker's visit will discuss auto tariffs, which he cited as "the big one" among U.S. -EU trade irritants.

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