THE U.S./CHINA TRADE IS - -
[INDISCERNIBLE].
JOINING US NOW IS LARRY KUDLOW.
WELCOME BACK TO "FOX NEWS
SUNDAY".
>> THANK YOU CHRIS.
APPRECIATE IT.
>>CHRIS: IN JULY, PRESIDENT
TRUMP SAID THAT WHITE HOUSE
CHIEF OF STAFF WOULD REMAIN ON
THE JOB THROUGH 2020.
NOW HE SAYS THAT KELLY IS OUT
AS ONE OF THE TOP FEW WHITE
HOUSE STAFFERS BID WHAT
HAPPENED?
>> IT’S BEEN A LONG TWO YEARS.
FOR THE CHIEF, GENERAL KELLY.
WHO RAN HOMELAND SECURITY AND
HAS BEEN RUNNING THE WHITE
HOUSE STAFF.
I THINK BY THE WAY, HE’S BEEN A
VERY GOOD CHIEF.
VERY ORDERLY PROCESSES IN THE
WHITE HOUSE.
NOT AN EASY THING TO DO.
GENERAL KELLY IS A REMARKABLE
PATRIOT.HE HAS GIVEN SUCH
PHENOMENAL SERVICE TO THIS
COUNTRY.PERHAPS IT’S TIME FOR
REST.
PRESIDENT TRUMP, AT OUR SENIOR
STAFF CHRISTMAS DINNER FRIDAY
NIGHT HAD WONDERFUL
COMPLEMENTARY THINGS TO SAY
ABOUT THE CHIEF.
I HARDLY CONCUR
I HARDLY CONCUR.
I SUPPOSE IT’S TIME TO MOVE ON.
>>CHRIS: LET ME ASK YOU TWO
MORE QUICK QUESTIONS.
DID KELLY RESIGN OR WAS HE
FORCED OUT?
>> I DON’T KNOW, TO BE
PERFECTLY HONEST.
I THINK IT WAS VERY AMICABLE
I THINK IT WAS VERY AMICABLE.
THAT’S WHAT I UNDERSTAND.
AGAIN, THE PRESIDENT SAYING
GOOD THINGS ABOUT THE CHIEF.
I’VE BEEN IN SO MANY MEETINGS
BE SO MANY MEETINGS IN MY
TENURE IN LESS THAN A YEAR NOW.
I THINK A LOT OF THE GOSSIP
IS JUST WRONG.
I THINK THEY DID GET ALONG.
EVERYONE WILL HAVE
DISAGREEMENTS
DISAGREEMENTS, THAT’S THE WAY
LIFE WORKS.
WAS HE FIRED?
I DON’T THINK HE WAS FIRED.
I WASN’T PRIVY TO THAT FINAL
CONVERSATION BUT THE PRESIDENT
HAD GREAT THINGS TO SAY ABOUT
HIM.>>CHRIS: WHAT DO YOU
THINK OF NICK AYERS?
>> I THINK QUITE A LOT OF HIM.
I’VE KNOWN HIM FOR A WHILE.
THE PRESIDENT WILL LET US KNOW
TOMORROW OR SOMETIME EARLY IN
THE WEEK FOR THE NEXT CHIEF IS
GOING TO BE.
IN TERMS OF NICK AYERS, MIKE
PENCE’S CHIEF OF STAFF, I THINK
THE WORLD OF HIM.
>>CHRIS: LET’S TURN TO YOUR DAY
JUMP IN THE STOCK MARKET HAD A
TERRIBLE WEEK SINCE PRESIDENT
TRUMP AND PRESIDENT XI JINPING
HAD DINNER IN ARGENTINA.THE
DOW LOST 1100 POINTS OR 4.5
PERCENT.
THE S&P 500 IS NOW IN THE RED
FOR 2018.
QUESTION, HOW MUCH OF THIS IS
BECAUSE OF CONFUSION OVER JUST
WHAT THE U.S. AND CHINA HAVE
AGREED TO?
>> I DON’T KNOW.
I’LL GRANT YOU THAT TRADE
ISSUES, CHINA TRADE ISSUES
HAVEN’T BEEN BUTTON-DOWN YET.
THE FIRST COUPLE DAYS AFTER
THAT DINNER, I WAS DOWN THERE.
THE MARKETS DID VERY WELL BOTH
IN CHINA AND THE U.S. AS A
MATTER OF FACT.
SINCE THEN, THERE HAVE BEEN
ISSUES.
THE ONE - - ISSUE THAT WAS
VIOLATING SANCTIONS.
CANADA HAS TAKEN THEM IN AND
THEY WILL PROBABLY BE
EXTRADITED.
THERE HAVE BEEN DIFFERENT
STATEMENTS HERE AND THERE.
I CAN TELL YOU RIGHT NOW, WE
ARE ON TRACK.
CHINA HAS FINALLY, WEDNESDAY
AND THURSDAY, CHINA’S COMMERCE
DEPARTMENT ISSUED VERY POSITIVE
PROMISING STATEMENTS.
SOMETIMES I THINK THESE THINGS
GET LOST.
MAYBE THE BEAUTIFUL FUNERAL OF
FORMER PRESIDENT BUSH.
THEY SAID THEY AGREED WITH THE
TIMETABLE.
THEY AGREE WITH THE DEADLINES.
THEY EXPECT TO BE MOVING
IMMEDIATELY TO TAKE ACTIONS.
ON KEY COMMODITIES FOR EXAMPLE
BY LOWERING TARIFFS AND OPENING
EXPORT SALES.
THINGS LIKE AGRICULTURE AND
ENERGY.
35 CHINESE AGENCIES AND THE
SUPREME COURT ARE NOW WORKING
ON NEW LEGISLATION TO DEAL WITH
THE IP THEFT ISSUES
ON NEW LEGISLATION TO DEAL WITH
THE IP THEFT ISSUES.
WHEN YOU PIECE IT TOGETHER
CHRIS, THERE’S A LOT OF GOOD
THINGS OUT THERE.
I THINK SOMETIMES IT GETS LOST
IN THE SHUFFLE.
>>CHRIS: IS PART OF THE REASON
IT’S TIME LOSS AND WHY IT TOOK
TO WEDNESDAY AND THURSDAY FOR
PEOPLE TO FIND OUT.
BECAUSE THERE ARE BIG
DIFFERENCES BETWEEN HOW THE
PRESIDENT AND THE WHITE HOUSE
IS DESCRIBING WHAT WAS AGREED
TO WHAT THE CHINESE ARE SAYING
WAS AGREED TO BE LET ME PUT A
COUPLE OF THEM UP.
THE U.S. SAYS CHINA AGREED TO
QUOTE, VERY SUBSTANTIAL
PURCHASES OF AGRICULTURAL AND
OTHER PRODUCTS.
THE CHINESE SAY NOTHING
SPECIFIC ABOUT HOW BIG THOSE
PURCHASES WILL BE.
PRESIDENT TRUMP SAYS THE
CHINESE WILL REMOVE THEIR 40
PERCENT TARIFF ON U.S. AUTO
IMPORTS FOR THE CHINESE ARE
DUCKING THAT ONE.
AND THEN THERE’S THE DIFFERENCE
BETWEEN WHAT YOU AND WHITE
HOUSE TRADE ADVISOR PETER
NAVARRO HAD TO SAY ON FRIDAY
ABOUT THAT 90 DAY DEADLINE FOR
SUSPENSION OF TARIFF INCREASES.
>> THE PRESIDENT INDICATED,
THERE’S GOOD SOLID MOVEMENT AND
SOME GOOD ACTION.
HE MIGHT BE WILLING TO EXTEND
THE 90 DAYS.
WE WILL HAVE TO SEE ON THAT
WE WILL HAVE TO SEE ON THAT.
>> IF IT’S NOT RESOLVED IN 90
DAYS, IS THIS A DEMONSTRATION
WILLING TO WALK AWAY?
>> IT’S NOT A QUESTION OF
WORKING WAY, IT’S MOVING
FORWARD ON THE STRATEGIES.
>>CHRIS: THAT CONTRADICTION
BETWEEN YOU AND PETER NAVARRO
LED TO A 500 POINT DROP IN THE
DOW.
FORGET THE CHINESE.
THE WHITE HOUSE CAN’T SEEM TO
GET IT STORY STRAIGHT.
>> WITH ALL RESPECT, I DON’T
THINK THERE’S MUCH DAYLIGHT
BETWEEN PETER AND DAVID WE ARE
FOCUSED RIGHT NOW ON THIS FIRST
90 DAY INCREMENT.
REGARDING WHAT MAY HAPPEN IN
THE FUTURE AND PRESIDENTIAL
CONSIDERATIONS, THAT WILL BE UP
TO POTUS OF COURSE WORKING WITH CONSIDERATIONS, THAT WILL BE UP
PRESIDENT XI JINPING
TO POTUS OF COURSE WORKING WITH
PRESIDENT XI JINPING.
I UNDERSTAND PEOPLE ARE LOOKING
FOR ISSUES.
LET ME READ QUICKLY.
IT WAS THE CHINESE COMMERCE
DEPARTMENT ANNOUNCEMENT THAT I
THINK IT WAS WEDNESDAY OR
THURSDAY.
CHINA WILL IMMEDIATELY
IMPLEMENT SPECIFIC ISSUES THAT
HAVE BEEN AGREED UPON BY
AGRICULTURE PRODUCTS, ENERGY
AND AUTOMOBILES TARIFF
AND AUTOMOBILES TARIFF.
ANNOUNCEMENT COMING FROM THE
STATE TARIFFS COMMISSION.
AS I SAID EARLIER, IT WAS
ANNOUNCED THAT A NUMBER OF
CHINESE AGENCIES AND THE
SUPREME COURT ARE LOOKING AT
NEW LAWS TO PREVENT
INTELLECTUAL PROPERTY THEFT.
THESE ARE VERY STRONG
INDICATIONS PRESIDENT TRUMP
HIMSELF.HE CALLED ME EARLY
THURSDAY MORNING TO SAY, DID
YOU SEE THAT ANNOUNCEMENT?
AND I DID.
I THINK IT’S VERY POSITIVE.
REALLY, WE ARE MAKING MORE
PROGRESS ON MORE SPECIFIC
ISSUES THAN EVER BEFORE.
NOW, LET ME ADD QUICKLY.
TRUST BUT VERIFY.
THAT’S VERY IMPORTANT.
- - WILL BE LOOKING VERY
CAREFULLY AT THESE
NEGOTIATIONS.
HE WILL EVALUATE, HE WILL MAKE
SURE THERE ARE ENFORCEMENT
MECHANISMS AND TIMETABLE
MECHANISM.
NOTHING IN THIS GAME IS DONE
UNTIL IT’S ABSOLUTELY VERIFIED
TO OUR SATISFACTION.
SO THAT’S A CAVEAT.
HOWEVER, THE STATEMENTS ARE
VERY POSITIVE.
>>CHRIS: EXCEPT THE PRESIDENT
TREATED 40 PERCENT TARIFF ON
AUTO IMPORTS IS LIFTED.
THE CHINESE HAVE NOT COMMITTED
TO THAT AND THERE WAS A BIG
BUMP IN THE ROAD ON SATURDAY
NIGHT.
PRESIDENT XI JINPING AND
PRESIDENT TRUMP HAVING DINNER
TOGETHER.
YOU’RE AT THE TABLE WITH THEM.
SUDDENLY, THERE’S THE ARREST
LAST SATURDAY OF - - THE CHIEF
FINANCIAL OFFICER OF TELECOM
GIANT - - FOR ALLEGEDLY
VIOLATING U.S. SANCTIONS ON
TRADE WITH CHINA.
COUPLE QUICK QUESTIONS.
ONE, DID PRESIDENT TRUMP KNOW
ABOUT THAT ARREST WHEN HE SAT
DOWN TO DINNER WITH PRESIDENT
XI JINPING AND IF NOT, WHAT WAS
HIS REACTION AFTERWARDS?
>> HE DID NOT KNOW BUT HE DID
NOT KNOW AND HAD NO REACTION
AFTERWARDS.
>>CHRIS: THE REPORTS HAVE BEEN
THAT HE WAS LIVID.
AS AN OUTSIDER, IF ONE OF THE
TOP BUSINESSMEN IN THE OTHER
PERSON’S COUNTRY WAS BEING
ARRESTED WHILE I’M MAKING MY
SET DINNER, I’D BE LIVID.
>> HE DIDN’T KNOW.
OKAY, I WILL STATE THAT
UNEQUIVOCALLY.
HE LEARNED TO PLAY LATER BY THE
WAY.
WAY LATER.
LOOK, REGARDING THE
PROSECUTION, TO ME JUST SAY,
THAT’S A LAW ENFORCEMENT
ACTION.
PRIMARILY DEPARTMENT OF
JUSTICE.
IT IS A VERY IMPORTANT ISSUE
BECAUSE THE EVIDENCE SUGGESTS
AT LEAST SO FOR THAT - - THEY
DID BRING SANCTIONS.
WE’LL SEE HOW THAT PLAYS OUT.
THAT’S AN ENFORCEMENT - -
>>CHRIS: I WANT TO ASK YOU ONE
QUESTION.
IF I MAY
IF I MAY, LARRY.
REPUBLICAN SENATOR MARCO RUBIO
SAID THIS WEEK AFTER THE ARREST
THAT - - A TELECOM GIANT IS A
BAD ACTOR.
>> KNOWING THE HISTORY AND HOW
IT SERVED AS AN INSTRUMENT OF
CHINESE ESPIONAGE, IT’S
CONCERNING.
WE HAVE A CASE TO BE MADE.
THE RIGHT THING TO DO IS TO
CHARGE HER AND FOR CANADA TO
EXTRADITE HER.
>>CHRIS: NOW, CHINA IS WARNING
THE SAME AGAIN CANADA WHERE
SHE’S BEING HELD THAT THERE
WILL BE CONSEQUENCES IF SHE
CONTINUES TO BE HELD.
ONE OF THE TOP PAPERS IN CHINA
ONE OF THE TOP PAPERS IN CHINA,
THE GLOBAL TIMES SAYS HER
RESUME IS TO A DECLARATION OF
WAR.
CAN YOU GUARANTEE ME AS PART OF
THIS NEGOTIATION
CAN YOU GUARANTEE ME AS PART OF
THIS NEGOTIATION, THE PRESIDENT
AND THE ADMINISTRATION WILL NOT THIS NEGOTIATION, THE PRESIDENT
AND THE ADMINISTRATION WILL NOT
LET HER GO?
>> CHRIS, I CAN’T GUARANTEE
ANYTHING.
THIS IS A DOJ
THIS IS A DOJ, NSC
LAW-ENFORCEMENT ISSUE.
I’M NOT AN ATTORNEY.
IT’S OUTSIDE MY LANE.
SO WE WILL SEE.
THE U.S. HAS LAWS ABOUT THESE
THINGS.
THEY HAVE A NUMBER OF LAWS ON
THE BOOKS NOW THAT PROTECT A
NUMBER OF POINTS.
NOT ONLY VIOLATIONS OF
SANCTIONS
SANCTIONS.
WE HAVE LAWS ABOUT ANYTHING
THAT WAS STOLEN.
WE ARE DISCUSSING LAWS, PEOPLE
CAN’T DO BUSINESS IN THE U.S.
WHERE GOODS AND SERVICES AND
INTELLECTUAL PROPERTY THAT WE
THINK WERE STOLEN.
THAT’S JUST BEING TOUGH AND
PROTECTING THE FAMILY JEWELS IN
MY JUDGMENT AND PROTECTING THE
INTEGRITY OF U.S. NATIONAL
SECURITY POLICY.
VERY IMPORTANT.
HOW THIS AFFECTS TRADE, I CAN’T
SIT HERE AND BE ABSOLUTELY
DEFINITIVE.
IT SEEMS TO ME THERE’S A TRADE
LANE THAT WE ARE DISCUSSING
THAT YOU AND I BOTH AGREE, THE
EARLY RETURNS IN CHINA ARE VERY
POSITIVE.
IT LOOKS LIKE HE WILL GET NEW
ACTION.
AND THERE IS A LAW ENFORCEMENT
LANE.
THEY ARE DIFFERENT.
I THINK PRESIDENT TRUMP AND
PRESIDENT XI JINPING AND LOWER
OFFICIALS WILL GENERATE OR
CONTINUE TO KEEP THAT
DIFFERENT.
I MIGHT BE WRONG BUT I CAN
PREDICT THE FUTURE ON THIS