Watch CNBC's full interview with Advisor Larry Kudlow on the 'phase one' trade deal with China

Birt 15 jan 2020
Áhorf 20 770
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National Economic Council Director Larry Kudlow, top economic adviser to President Trump, joins CNBC's "Squawk on the Street" to discuss the "phase one" trade deal.
President Donald Trump signed a partial trade deal with China on Wednesday as the world’s two largest economies try to contain an economic struggle.
Through the deal, the Trump administration aims to resolve some longstanding American concerns about Chinese trade abuses. However, the accord appears to leave questions about how Washington and Beijing will enforce its terms and prevent further tensions.
The deal takes steps to root out several practices that irked the White House and bipartisan members of Congress, including intellectual property theft and forced technology transfers, in exchange for Chinese market access, according to text released by the White House. It also details a $200 billion increase in Chinese purchases of U.S. goods over two years - a priority for Trump.
The president said the U.S. and China are “righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families.” He added that the deal has “total and full enforceability.”
The president signed the deal as the House prepared to send articles of impeachment to the Senate and kick-start a trial on whether to convict Trump and remove him from office.
Here are some of the deal’s core pieces (read the full agreement here):
It calls for China to submit an “Action Plan to strengthen intellectual property protection” within 30 days of the agreement taking effect, according to the trade pact. The proposal would include “measures that China will take to implement its obligations” and “the date by which each measure will go into effect.”
The deal says companies should be able to operate “without any force or pressure from the other Party to transfer their technology to persons of the other Party.” Technology transfers “must be based on market terms that are voluntary and reflect mutual agreement,” it reads.
The agreement says China will increase purchases of U.S. manufacturing, energy and agricultural goods and services by at least $200 billion over two years.
It makes commitments to try to root out the sale of counterfeit goods.
The deal includes provisions to boost Chinese market access to financial services firms.
Ahead of the signing, the Trump administration also revoked its decision to label China a currency manipulator.
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  • PAPA PAORA

    PAPA PAORA

    Mánuði síðan

    Trump is trying to do good things for American people and democratic is trying to kick Trump out of the office.

  • R Stam

    R Stam

    Mánuði síðan

    China is all Political Warfare, their mindset is not changed

    • R Stam

      R Stam

      29 dögum síðan

      Wade H ..it’s obvious. what China is and what China does are the same. CCP will change when the Pope changes his religion

    • Wade H

      Wade H

      Mánuði síðan

      R Stam why should they change because the western told them to change?

  • Chongyee Yap

    Chongyee Yap

    Mánuði síðan

    If you really have a trade agreement, then why is miss meng Wan Zhou still been held hostage ?

    • Swesal Piraal

      Swesal Piraal

      28 dögum síðan

      It is called due process. Now, what happened in retaliation to the Canadians in actual prisons for no reason at all in China is something similar to hostage taking.

  • myasians

    myasians

    Mánuði síðan

    Trump is playing with a tiger by keeping it alive. China will destroy America the first chance it gets. Destroy communism now, then there will be peace & no more oppression on the Muslims, Tibetans, HK & Taiwan.

  • ib crypto

    ib crypto

    Mánuði síðan

    Aren't the Chinese "Financial" companies basically in Ruins?

  • Rich u

    Rich u

    Mánuði síðan

    Wow.. many people dont understand the impact of this deal and the opportunity. Karl from CNBC is such a political hack... he is not making deal big or small. What a FOOL. This deal is powerful for America and all involved. Good GRIEF, can't we all agree with that.. but the Radicals can't because Trump was correct, Tariffs Did WORK. good for Cramer calling it straight...

    • norceros xD

      norceros xD

      28 dögum síðan

      To begin with, the trade war has had only a marginal impact on the Chinese economy. Exports to the U.S. has indeed fallen by some 8% in 2019. However, total Chinese exports have barely budged, down by a minuscule 0.03% in 2019. Btw what's in that deal that's so powerful

  • gore david

    gore david

    Mánuði síðan

    You are first time becoming hilarious in my life Kudlow

  • haowen ao

    haowen ao

    Mánuði síðan

    american is not greatest country in the world, check out "Newsroom" plz

    • Robert DeSio

      Robert DeSio

      Mánuði síðan

      If you believe that, please leave and go to the country that you think is better.

    • free roamer

      free roamer

      Mánuði síðan

      Tell us all about the wonderful country you have helped build, and we will all come and join you big fella!

  • Case Holderfield

    Case Holderfield

    Mánuði síðan

    Are you kidding me. Trump just brought China to her knees in 18 months. Amazing! And he still has plenty of barging chips for phase two. Giant balls to put it on the line for Americans

    • Ulikemyname

      Ulikemyname

      28 dögum síðan

      @wee huddy Wrong! The tariffs are affecting US companies manufactuting for USA in China. That is the big thing here. Companies like Apple for example they are moving out of China. They also said that they will invest 350 billion dollars in the next 5 years.

    • norceros xD

      norceros xD

      28 dögum síðan

      What happened to decoupling?

    • norceros xD

      norceros xD

      28 dögum síðan

      To begin with, the trade war has had only a marginal impact on the Chinese economy. Exports to the U.S. has indeed fallen by some 8% in 2019. However, total Chinese exports have barely budged, down by a minuscule 0.03% in 2019. But yeah, Trump brought China to her knee.

    • Case Holderfield

      Case Holderfield

      29 dögum síðan

      @wee huddy your right! We should have just gave up. Nothing is going to change. I can't believe in the only POTUS the is taking on the Chinese and brought them to the table. Sorry i was almost inspired umtil your logic came raining down on my parade

    • wee huddy

      wee huddy

      29 dögum síðan

      Trump did nothing , his tariffs have affected American companies and consumers , this doesn't even bring the US back to where it was before he started , 32 billion in welfare for farmers and hundreds of bankruptcies ( mmm socialism ) a loss of markets to Brazil ... so much winning

  • naniki77

    naniki77

    Mánuði síðan

    B.S

  • Daoist Wanderer

    Daoist Wanderer

    Mánuði síðan

    Chest beating. Lying. Blaming others. Sense of self exceptionalism. Self-denial. Hypocrisy. These are American behavior and speaks volume about how this superpower will decline by her own attitude and doings.

  • free roamer

    free roamer

    Mánuði síðan

    God Bless our Negotiator-In-Chief!

  • Military Rankings

    Military Rankings

    Mánuði síðan

    It's Hilarious the US thinks it solely has the ability to innovate and others steal. Does it ever occur to them China is already on its way to becoming an innovation based economy and will have a larger market than the US in many industries soon? The Chinese will never forget this kind of blackmail based on misguided economic nationalism? The US will not let China buy advanced planes, military equipment, semi-conductors, blocks Chinese companies and corporations in space, tech and universities while China has let in all these American companies into China and turn around and say it is the Chinese that are unfair?

    • kle3640

      kle3640

      28 dögum síðan

      @Military Rankings ok

    • Military Rankings

      Military Rankings

      28 dögum síðan

      @kle3640 if you think Chinese manufacturing strength is about cheap labor. You have not been keeping up with the last 2 decades.

    • kle3640

      kle3640

      Mánuði síðan

      they went to china for the cheap labor to make more and more money and now we are in a debt crisis. It was all about the super cheap labor and now they realize greed gets you debt.

  • Dimitrije Teodorovic

    Dimitrije Teodorovic

    Mánuði síðan

    What a clown.

  • cesar lagares

    cesar lagares

    Mánuði síðan

    Now the Unions need to understand when Democrats / Socialists take charge, unions are outlawed. Strikes are outlawed.  Protests are outlawed.   Support President Trump  🇺🇸GOD BLESS AMERICA 🇺🇸

  • Hongtao Chen

    Hongtao Chen

    Mánuði síðan

    It is big deal for both countries.

  • Anicca Smith

    Anicca Smith

    Mánuði síðan

    Phase One Deal 🇺🇸 🥳🥳🥳🥳...Dow 32,000

  • Garden Soul

    Garden Soul

    Mánuði síðan

    Hey, ask Larry about the Repo market and how the FED/ banks are in trouble.
    New York Fed Adds $60.7 Billion to Financial Markets
    Fed has been adding large amounts of short-term liquidity to markets since September
    The Federal Reserve Bank of New York added $60.7 billion in overnight liquidity to financial markets on Monday. https://www.wsj.com/articles/new-york-fed-adds-60-7-billion-to-financial-markets-11578929190?mod=searchresults&page=1&pos=1&mod=article_inline

  • Garden Soul

    Garden Soul

    Mánuði síðan

    China or the USA can call foul on the trade deal at anytime and quit it . The stock market goes up because the Fed is printing money , handing it to the one percent, who buys stocks. When that money stops, the market plunges.

    • d. nuzzio

      d. nuzzio

      Mánuði síðan

      Small business, the #1 enemy of the left, has been able to rebuild on the fly with purchases of updated equipment. Also, they've been able to hire NEW people, not hire backs. This is great for the economy and is one of the main reasons we are where we are today. Couple that with decreased energy costs, and it keeps going. Natural gas was 11 to 15 under barak ebola. It 2 now. Don't think that benefits business and consumers alike? Typical of leftists. Bring on the negative and point out huge companies like Amazon, when it's the small companies who hire the most. When you either, tax into extinction, or don't have a so called 1%, you end up like Greece or like Venezuela or like Lebanon today.

    • Garden Soul

      Garden Soul

      Mánuði síðan

      @free roamer You comment has no relevance to my comment which is so typical of trumpeters. Trump can't; focus nether can his supporters.

    • free roamer

      free roamer

      Mánuði síðan

      You think just because you've "plunged" everyone else should too. Forgive your parents Bubba and move on. Life is short.

  • Garden Soul

    Garden Soul

    Mánuði síðan

    Everything is great as long as we can go into debt over one trillion per year and not run out of ink and paper. Trump is outpacing Obama in deficits and we have a "great economy". ???

    • Garden Soul

      Garden Soul

      Mánuði síðan

      @d. nuzzio yep, your right

    • d. nuzzio

      d. nuzzio

      Mánuði síðan

      Barak ebola spent 10 trillion by throwing footballs of cash to corporations. Where was the outrage then? Anyone could bail out the economy that way. Getting spending bills handed over before the deadline in 2 hrs would go a long way to help weed out unnecessary spending. But you didn't expect the house of whores to do that did ya? 2800 page bill, and we had a couple hours to review and sign it before the govt would have had to shut down. There's where the real issue is. Tell that to joy Behar for me would ya?

    • The Commodore

      The Commodore

      Mánuði síðan

      I’m a conservative but damn, Trump is running the country like Trump airlines. Debt, debt and more debt.

  • buku2008

    buku2008

    Mánuði síðan

    Bunch of BS

  • Keath Even

    Keath Even

    Mánuði síðan

    were is peter navaro

  • Heavy Distortion

    Heavy Distortion

    Mánuði síðan

    What China says and what it does are two different things.

    • Wade H

      Wade H

      Mánuði síðan

      Heavy Distortion just like the US

    • d. nuzzio

      d. nuzzio

      Mánuði síðan

      @Kam sun Leong no. It's says uphold your end of the agreement or else suffer the consequences. It's called negotiating from the stance of power. They need us. They need companies to stay in China. Plenty of competition in the region.

    • Kam sun Leong

      Kam sun Leong

      Mánuði síðan

      That also sounds like what Trump will do too. So both are compatible.

  • Felipe Gomez

    Felipe Gomez

    Mánuði síðan

    lmao Donald Trump needs to put this guy back in the dog house, this guy just admitted this phase 1.0 is bull shit

  • Farzana Patel

    Farzana Patel

    Mánuði síðan

    Trump should have went further and punished them even more...
    Open their market to US companies completely or we close ours.

    • norceros xD

      norceros xD

      28 dögum síðan

      Patel's and Modi's the usual suspects. What do you think Trump is afraid of?

    • Serena Chen

      Serena Chen

      Mánuði síðan

      Brain dead

  • cmpdas

    cmpdas

    Mánuði síðan

    “Jimmy”....similar to hearing one or Robert Deniro's friends refer to him as Bob.

  • TransCanada Weather

    TransCanada Weather

    Mánuði síðan

    In my unbiased opinion this is good at-least for the illusion of strengthening the global economy, if nothing else. In reality, USA-China trade is only 0.4-0.5% of domestic GDP so in reality it won't do anything for growth, but it will push the stock market bubble higher based on pure speculation.
    The ironic thing is the US economic data is actually WORSE than the Chinese data over the course of the last 2-3 months. In fact even CNBC had a large article of 5-10 charts showing virtually every data point has China ahead. This deal was only signed because Trump knew this internally and wanted to try to "save" the domestic economy in his re-election year.
    Either way, SPX will hit 3700 this year like I've been saying on all my posts on YouTube for the past 6 months.

    • #10 Lobster

      #10 Lobster

      Mánuði síðan

      TransCanada Weather I agree with most of what you are saying however I am a middle class worker and I invest in the stock market like I’m pretty sure you do as well. That combined with retirement investments are definitely effected by any boost to the stock market. I would encourage all middle and lower class people to invest in such things. Yes there’s risk of a bubble but there’s risk in driving to work every morning but we do it for the potential to earn. Most people aren’t going to become well off by working 9-5 and to become a business owner or inventor of the next greatest thing is not for everyone. Fortunately with technology and availability for everyone to invest simply and cheaply there’s no reason not to. It’s no different than throwing money at a new $1000 phone or a nicer car. Those are material status improvements not financial improvements.

    • TransCanada Weather

      TransCanada Weather

      Mánuði síðan

      @#10 Lobster Not at all. My argument is simply pointing light to the situation that this won't improve much of the real-world economy for working citizens of the middle class sector. The stock market is not correlated to the real-world economy despite what the filthy rich try to say. My point was simply to say that this will do nothing other than move the markets higher for pure speculation. And yes a deal should have been made because this world doesn't need any more perpetual wars (trade or on the ground) with indefinite hatred towards people. The only way this world can move forward and improve the lives of everyone is to occupy peace.

    • hao ye

      hao ye

      Mánuði síðan

      @TransCanada Weather you have know too much. shut up, in name of MAGA😁

    • #10 Lobster

      #10 Lobster

      Mánuði síðan

      TransCanada Weather Should we have not done a deal with China or should the deal have been stronger? You mentioned .05% GDP which is in the hundreds of billions. I’m no economist but if that number is boosted even a few more percentage points then it is good for our economy is it not? If you couple that with other trade deals like USMCA and agreements does that not help our economy?

  • thomas 71

    thomas 71

    Mánuði síðan

    Sound like more B.S.

    • I AM The Russian Troll

      I AM The Russian Troll

      Mánuði síðan

      Wanna know what's really going on? The "purchases" China has agreed to...Its tactical, The Global economy is in the Largest Bubble of all time, Remember the Dollar will soon be as relevant as the Jap yen, no longer the worlds reserve, The higher the stock market goes, the more irrelevant America becomes post crash. 50B in energy haha wanna know what this is all about, America has been subsidizing nat. gas production, break even price/barrel for USA is $85/barrel. China knows, if they temporarily agree to these "purchases" the bubble gets bigger, the bigger it inflates, the longer the period of stagnation post-crash in America. During this stagnation time China's position on the global stage will be far better than USA, solidifying the rise of the traditional trade leaders of earth, China and India. This trade war has never been a war, the war is over, you will feel like a sheep because you've ignored the truth and embraced propaganda. But you'll blame the other team and continue to live a confusing reality. GL

  • Emma Bell

    Emma Bell

    Mánuði síðan

    More tax cuts, more debt, more easy money, more debt, collapse. This the direction we are heading.

    • Kevin Graham

      Kevin Graham

      8 dögum síðan

      Weird smile. When did you get your economics degree?

    • d. nuzzio

      d. nuzzio

      28 dögum síðan

      @Ulikemyname it has because the spending bill is served up ACA style. 2600 pages ,with a couple hours to review before the deadline. Spending bills should be delivered 30 days prior to absolute deadline ,not at the the last minute. The desired effect becomes ,jam everything in, pass it under time stress, and pass the blame onto trump. 1.4trillion dollars. And they bitch about 6 billion for the wall,yet pull this crap.

    • Ulikemyname

      Ulikemyname

      28 dögum síðan

      Actually the spending has increased.

    • Robert DeSio

      Robert DeSio

      Mánuði síðan

      You sound like a typical product of our public education system. God help us.

    • d. nuzzio

      d. nuzzio

      Mánuði síðan

      Add tax increases in. Plug in hillary. S&P 500 OPENS, not trades down to, 1400. Unemployment goes back to 7% ..on and on..the tax breaks continue to be a huge benefit to small business, the #1 enemy of the left. It continues to benefit families as well. Gas ,oil and natural gas especially are much lower than 5 years ago and the demand was quite a bit less..

  • Edward C

    Edward C

    Mánuði síðan

    Cramer is such a ass kissing brown nose 🤣🤣🤣🤣

  • William Schutter

    William Schutter

    Mánuði síðan

    How do you mobilize all resources against the prospects of war? Trump!