On Saturday, Beijing and Washington said they would keep talking about measures under which China would import more energy and agricultural commodities from the United States to close the $335 billion annual U.S. goods and services trade deficit with China.
During an initial round of talks this month in Beijing, Washington demanded that China reduce its trade surplus by $200 billion. No dollar figure was cited in the countries’ joint statement on Saturday.
Kudlow told CBS “Face the Nation” it was too soon to lock in the $200 billion figure. “The details will be down the road. These things are not so precise,” he said.
Beijing agreed to take measures to substantially reduce the U.S. trade deficit with China and offered to make structural reforms, such as lowering tariffs and non-tariff barriers, that will allow the United States to export goods worth billions of dollars more, Kudlow said earlier on ABC’s “This Week.”
Trump was in a “very positive mood about this,” Kudlow said.
However, he said there was no trade deal reached.
“There’s no agreement for a deal,” Kudlow told ABC. “We never anticipated one. There’s a communique between the two great countries, that’s all. And in that communique, you can see where we’re going next.”
Saturday’s statement made no mention of whether there would be a relaxation of paralyzing restrictions on Chinese telecommunications equipment maker ZTE Corp imposed last month by the U.S. Commerce Department.
The action was related to the violation of U.S. sanctions on Iran and North Korea and banned American companies from selling semiconductors and other components to ZTE, causing the Shenzhen-based company to cease operations.
Trump said last week he had directed Ross to put ZTE back in business, but Kudlow said any changes would be minimal.
“If any of the remedies are altered they are still going to be very, very, tough, including big fines, compliance measures, new management, new boards,” he said. “Do not expect ZTE to get off scot-free. Ain’t going to happen.”
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