Kudlow: No Agreement in Place for China’s Trade Surplus Reduction

Kudlow: No Agreement in Place for China's Trade Surplus Reduction

White House economic adviser Larry Kudlow said Sundaythe United States “never agreed” to a deal that China reduce its trade surplus by $200 billion to resolve a trade dispute.

In an interview on ABC News’ “This Week,” the director of the National Economic Council declared “there’s no agreement for a deal” and “we never anticipated one.”

“There’s a communique between the two great countries. That’s all,” Kudlow declared.

On Thursday, it was reported China offered President Donald Trump a $200 billion reduction in its annual trade surplus with the United States by increasing imports of American products and other steps. The offer came as Chinese Vice Premier Liu He visited to try to resolve a trade dispute.

The U.S. response was not reported.

On Sunday, Kudlow elaborated on the $200 billion trade deficit figure in the report, however, calling it “a number that interested the president a lot. And both sides… have used that as a rough ballpark estimate.”

Kudlow said the communique between the countries “was a consensus of taking effective measures to decrease the United States’s deficit.”

“They’re willing to lower tariff and non-tariff barriers which will permit us to export billions and billions more goods to China. That’s the elementary point. Key point. These numbers, you can’t predict….”

Kudlow also warned that although Trump tweeted that he wanted to find a way to get Chinese telecom equipment maker ZTE back in business, it won’t come without strings.

A U.S. blockade has choked off the revenue of the No. 2 Chinese telecom company; it said May 10 it’s suspended all major operations.

“Do not, please, do not expect ZTE to get off scott-free,” Kudlow said. “Ain’t gonna happen.”

“President Xi [Jinping] asked President Trump to take another look at it,” he said. “It’s an enforcement action. A legal enforcement action. The process [is] being run by the Commerce and Justice department[s]. I don’t know how this is going to turn out. Let me just say, if any of the remedies are altered, they’re still going be very, very tough…”

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