UP THE DEAL WITH JUST 60 DAYS'
NOTICE.
"COUNTDOWN" HAS BEEN HERE AT THE
WHITE HOUSE ALL DAY REPORTING ON
THE LONG-AWAITED SIGNING AND
JOINING US NOW IN HIS FIRST
INTERVIEW SINCE THE CEREMONY,
NATIONAL ECONOMIC COUNCIL
DIRECTOR LARRY KUDLOW WHO, AS I
SAID, HAS WORKED AND TOILED AND
CAJOLED AND DARE I SAY
NEGOTIATED, WHO KNOWS WHAT IT
TOOK --
>> LAST COUPLE YEARS, ACTUALLY.
I KNOW YOU HAVE FABULOUS
VIEWERSHIP.
DO THEY KNOW THAT YOU AND I USED
TO CO-HOST ON ANOTHER NETWORK?
LIZ: CAN YOU BELIEVE THAT?
>> USEFUL INFORMATION.
FULL DISCLOSURE.
LIZ: FINALLY, WE ARE GETTING
TOGETHER BUT YOU ARE ON THE
GOVERNMENT SIDE.
I GET TO ASK THE TOUGH
QUESTIONS.
FIRST, I WANT TO JUST SIMPLY ASK
A VERY SIMPLE QUESTION HERE.
CAN YOU NOW SAY THAT WITH THE
SIGNING, THE LANDSCAPE OF TRADE
BETWEEN THE U.S. AND CHINA IS
NOW FAIR?
>> IT'S CERTAINLY FAIRER AND
IT'S MORE BALANCED AND WE DO
HAVE HIGH HOPES.
YOU KNOW, I WANT TO TELL YOU, AT
THE LUNCH WHICH WAS NOT ATTENDED
BY THE MEDIA, WE HAD A BEAUTIFUL
LUNCH IN THE EAST ROOM, THE
PRESIDENT SAID TWO THINGS I
THOUGHT OF NOTE.
FIRST OF ALL, HE SAID RIGHT NOW,
TODAY, WITH THE SIGNING OF THIS
DEAL, THIS IS THE BEST MOMENT
FOR U.S./CHINA RELATIONS EVER.
LIU HE AGREED WITH THAT.
LIZ: BIGGER THAN WHEN NIXON WENT
TO CHINA?
>> I THINK SO.
IT'S FUNNY, WHEN I LEAVE, I'M
GOING TO HAVE HENRY KISSINGER IN
MY OFFICE.
HE'S A VERY DEAR FRIEND OF MINE.
HE'S BEEN A GREAT MENTOR TO ME.
BUT THE OTHER THING THAT WAS
NOTEWORTHY, WHAT THE PRESIDENT
SAID DURING THAT LUNCH, AT LEAST
THAT I CAN TELL YOU, IS HE
BELIEVES, POTUS BELIEVES THAT
PHASE ONE, THAT'S THE TOUGH ONE,
AND HE FEELS THAT PHASE TWO WILL
COME MUCH MORE EASILY BECAUSE WE
CLIMBED THE MOUNTAIN FOR PHASE
ONE.
THIS HAS NEVER BEEN DONE BEFORE,
EVER, IT'S A HISTORICAL MOMENT.
PEOPLE WILL SAY IS IT GOING TO
WORK.
THIS IS AN ENFORCEABLE
AGREEMENT.
WE CAN GO INTO THAT IF YOU CARE
TO ON THE DETAILS.
BUT THE GROUND COVERED IN PHASE
ONE WAS ENORMOUS AND YOU KNOW,
WE THOUGHT WE WERE DEAD IN THE
WATER LAST MAY AND WE HAVE COME
BACK FROM THAT, BOTH SIDES
WORKING VERY HARD TO GET IT
DONE, AND THE CHANGES IN PHASE
ONE, I MEAN, WE SHOULD TALK
ABOUT THE I.P. CHANGES AND THE
BROAD BASE OF -- AMERICAN
EXPORTS, THE $200 BILLION
NUMBER, YOU KNOW WHAT'S IN
THERE, IT'S NOT JUST FARM STUFF,
$40 BILLION TO $50 BILLION.
IT'S $75 BILLION OF
MANUFACTURING, OKAY?
IT'S $50 BILLION OF ENERGY.
IN FACT, POTUS HAS ASSIGNED ME
THE TASK TO MAKE SURE WE CAN
MOVE THE LNG INTO CHINA.
LIZ: LIQUID NATURAL GAS.
>> AFTER THE LUNCH WE JUST
HAD --
LIZ: HE WANTS CHINA TO BUY MORE
OF THAT.
>> ALSO $40 BILLION OF SERVICES,
MOSTLY FINANCIAL SERVICES.
YES.
AND LIU HE, THE VICE PREMIER OF
CHINA, AGREED TO THAT.
THEY NEED OUR ENERGY.
WE WILL PROBABLY WIND UP SELLING
THEM NOT ONLY NAT GAS, LIQUID
NATURAL GAS, BUT WE WILL ALSO
SELL THEM A LOT OF COAL AND WE
WERE TALKING ABOUT THE BEST
ROUTES TO DO THAT.
SO THIS COVERS, I'M JUST SAYING,
IT'S A VERY WIDE PANOPLY OF
ACTIVITIES.
LIZ: WHAT WAS THE MOST DIFFICULT
PART TO GET ACCOMPLISHED?
BY THE WAY, IT IS SIGNIFICANT
AND NEWSWORTHY YOU ARE SAYING
PHASE ONE WILL HAVE BEEN MUCH
MORE DIFFICULT --
>> I THINK SO.
I DON'T THINK PEOPLE APPRECIATE
THAT.
LIZ: HOW MANY PHASES DO YOU
EXPECT WE HAVE TO ENDURE?
>> THE PRESIDENT MENTIONED AT
THE LUNCH HE DIDN'T EXPECT A
PHASE THREE.
THE REASON I EMPHASIZE THE
IMPORTANCE OF PHASE ONE, I
TALKED TO LIGHTHIZER, BOB
LIGHTHIZER, MY LONG-TERM FRIEND,
ABOUT THIS, IT'S NEVER BEEN DONE
BEFORE.
SO GETTING THE FIRST THING DONE
OPENS THE DOOR TO EVERYTHING
ELSE.
WE WILL SEE, YOU KNOW, THERE ARE
GOING TO BE SOME DISPUTES THAT
WILL HAVE TO BE RESOLVED.
I HAVE NO ILLUSIONS ABOUT THAT.
BUT GETTING THIS DONE ON PAPER,
YOU'VE GOT YOUR 85-PAGE BOOKLET
HERE, IT JUST COVERS SO MUCH
GROUND.
HERE'S ONE FOR YOU.
OKAY.
INTELLECTUAL PROPERTY THEFT HAS
BEEN A MAJOR STUMBLING BLOCK,
OKAY, A MAJOR COMPLAINT BY THE
UNITED STATES --
LIZ: LET'S EXPLAIN TO OUR
VIEWERS WHEN COMPANIES GO INTO
CHINA, THEY ARE FORCED TO HAVE A
BUSINESS PARTNER, CHINESE, ON
THE GROUND.
>> JOINT VENTURE.
AND THEY OWN THE JOINT VENTURE.
LIZ: THE INTELLECTUAL PROPERTY,
SOFTWARE, IDEAS, ARE SUDDENLY
STOLEN BY THE CHINESE.
>> IN MANY WAYS, THIS HAS
HAPPENED, THEY CAN FORCE THE
AMERICAN FIRM TO LITERALLY PUT
THEIR BLUEPRINT ON THE TABLE AND
THEN OF COURSE, THE CHINESE WILL
GET THEIR EXPERTS IN AND REVERSE
ENGINEER AND STEAL THE
TECHNOLOGY AND THAT HAS TO STOP.
LIZ: BUT LARRY, PART OF THIS IS
GOING TO OPEN UP CHINA.
CHINA SAYS IT WILL OPEN UP TO
FINANCIALS AND SERVICES TO COME
IN AND DO BUSINESS.
LET'S JUST SAY JPMORGAN, WHICH
IS OF COURSE THE PLATINUM
STANDARD RIGHT NOW FOR BANKS,
GOES IN THERE, SAYS GREAT, WE
CAN DO BUSINESS --
>> PLATINUM.
THAT IS BETTER THAN GOLD?
LIZ: PLATINUM IS MORE EXPENSIVE
THAN GOLD.
RHODIUM IS MORE EXPENSIVE THAN
ALL OF THEM.
>> JUST WANTED TO CHECK.
THE FINANCIAL SERVICES IS THE
BIG WINNER.
LISA: YOU'RE TELLIN
LISA: YOU AE TELLIN
LISA: YOU AR
LIZ: YOU'RE TELLING ME THE
CHINESE DON'T WANT TO PEEK IN
AND SEE HOW JPMORGAN DOES WHAT
IT DOES AND COPY IT?
>> FOR THE FIRST TIME, THE
AMERICAN COMPANY, WHICHEVER BANK
IT IS, WHICHEVER INVESTMENT
FIRST, WHICHEVER INSURANCE
COMPANY, WILL OWN 100% OF THE
COMPANY.
SO THE JOINT VENTURE PROBLEM
WHICH GAVE THE CHINESE A
TREMENDOUS ADVANTAGE WITH
RESPECT TO INTELLECTUAL PROPERTY
AND FORCED TRANSFERS OF
TECHNOLOGY, THAT GETS SOLVED BY
THE CHANGE IN OWNERSHIP.
THAT IS SO IMPORTANT.
I'M HOPING THAT OVER TIME, THIS
100% OWNERSHIP BECOMES A MODEL
FOR ALL THESE OTHER INDUSTRIES
THAT WE WILL BE ENGAGED IN.
LIZ: I HAVE TO ASK ABOUT HUAWEI.
EARLIER TODAY RIGHT HERE, STEVE
MNUCHIN HAD SAID HUAWEI, THE
CHINESE TELECOM GIANT, IS NOT A
BARGAINING CHIP TO TRADE BACK
AND FORTH, IT IS A NATIONAL
SECURITY ISSUE ONLY.
SO CAN YOU DEFINITIVELY SAY,
LARRY, THAT WE WILL NOT -- THAT
IF THE CHINESE GIVE THE
PRESIDENT EVERYTHING HE WANTS,
THAT WE WILL NOT SUDDENLY SEE
HUAWEI LIFTED OFF THE BLACKLIST
AND FREE TO DO BUSINESS ONCE
AGAIN WITH EVERYBODY?
>> WELL, I DON'T WANT TO MAKE
PREDICTIONS ON THAT.
SECRETARY MNUCHIN IS CORRECT,
HUAWEI WAS NEVER PART OF THE
TRADE NEGOTIATION.
HUAWEI IS MUCH MORE -- I'M
DEEPLY INVOLVED IN 5G AND
RELATED MATTERS REGARDING
HUAWEI, HUAWEI IS -- I MEAN,
IT'S A MATTER OF INTERNATIONAL
SECURITY BECAUSE OF THE SPYING
AND SO FORTH.
THAT INCLUDES THE CYBER-HACKING.
THERE'S A LOT GOING ON THERE.
WE HAVE SAID FOR QUITE SOME TIME
WITH REGARD TO THIS DEAL BUT
JUST WITH REGARD TO NATIONAL
SECURITY, WE HAVE THE ENEMY
LIST, WE HAVE EXPORT CONTROLS,
WE HAVE FOCUSED ON HUAWEI AND WE
WILL CONTINUE TO DO SO.
HUAWEI DOES NOT HAVE A GOOD
TRACK RECORD, OKAY?
I MEAN, THERE ARE THINGS I CAN'T
SAY TO YOU THAT THEY HAVE DONE
IN THE U.S. TO SPY ON US THAT
ARE JUST KIND OF OFF THE CHARTS,
AND TO BE HONEST WITH YOU, LIZ,
AS WE BUILD OUT 5G, AND WE ARE
WORKING VERY HARD ON THAT WITH
THE PRIVATE SECTOR, WE REALLY
FEEL HUAWEI CANNOT BE A PART OF
THAT.
THEY CANNOT BE A PART OF THAT
BECAUSE --
LIZ: THAT'S A BIG STATEMENT.
>> THERE'S NO -- WE HAVE LEARNED
WITH ALL THE INVENTIONS AND
INNOVATIONS IN SOFTWARE AND
COMPUTING POWER, WHAT WE USED TO
THINK WAS JUST A BUNCH OF DUMB
RADAR ANTENNAS FAR DIVORCED FROM
THE CORE DATA PROCESSING PARTS,
NO MORE.
YOU LOOK AHEAD TWO OR THREE
YEARS, ALL THE SMART COMPANIES
IN THIS COUNTRY, THEY HAVE BEEN
FABULOUS WITH US, THEY ALL KNOW
YOU CAN'T MAKE THOSE
DISTINCTIONS.
SO THE HUAWEI STORY IS GOING TO
BE A VERY TOUGH, WELL-ENFORCED
STORY.
THE COMMERCE DEPARTMENT IS
PUTTING EXPORT CONTROLS, EXPORT
RESTRICTIONS.
I DON'T FRANKLY THINK THAT'S
GOING TO CHANGE.
BUT I WILL SAY IMPORTANTLY, THAT
HAS BEEN SEPARATED FROM THE
TRADE TALKS.
MR. MNUCHIN IS EXACTLY RIGHT.
YOU CAN TALK TO WILBUR ROSS.
HE WILL ECHO THAT.
LIZ: I HAVE TO QUICKLY ASK YOU
TWO THINGS.
YOU HAVING BEEN IN TELEVISION
KNOW WE RUN UP AGAINST THINGS
CALLED HARD BREAKS.
NUMBER ONE --
>> GO RIGHT THROUGH THE BREAK.
LIZ: THE SENATE IS ALREADY
DEBATING AND --
>> START ON THURSDAY, FRIDAY?
LIZ: I'M ASKING YOU.
>> I'M HEARING THURSDAY OR
FRIDAY.
INCIDENTALLY, USMCA IN TERMS OF
TOTAL TRADE WITH CANADA AND
MEXICO IS REALLY TWICE AS BIG AS
TRADE WITH CHINA.
SO IT'S A HUGELY IMPORTANT
ECONOMIC EVENT.
LIZ: YOU'RE SAYING IT COULD BE
AS EARLY AS THURSDAY FOR A VOTE
IN THE SENATE?
>> I'M PRETTY OPTIMISTIC ABOUT
THAT.
I DON'T RUN THE SENATE BUT
PRETTY OPTIMISTIC ABOUT THAT.
LIZ: YOU HAVE FRIENDS IN HIGH
PLACES.
FINALLY, YOU --
>> AND IT'S GOING TO ADD AT
LEAST HALF TO THREE QUARTERS OF
THE GDP POINT AND WE BELIEVE,
THIS FRIS TH
THIS ISIS TH
THIS IS F TH
THIS IS FROH
THIS IS FROM THE COUNCIL OF
ECONOMIC ADVISERS, THE
U.S./CHINA TRADE DEAL WILL ADD
AT LEAST, AT LEAST HALF A POINT
OF GDP SO THAT IN 2020, WATCH,
EVEN THOUGH WE TAKE A HIT BOEING
IN THE FIRST QUARTER,
UNFORTUNATELY, WE ARE
TRANSITIONING, WE WILL BE
TRANSITIONING BACK TO THE 3%
GOAL WE ORIGINALLY HAD IN
2017-2018.
LIZ: CHARLIE GASPARINO IS
REPORTING, HIS TEAM IS REPORTING
THAT AS WE HEAD INTO THE
ELECTION HERE, THAT YOU AND THE
ADMINISTRATION WILL DO TAX CUTS
2.0, SPECIFICALLY A PAYROLL TAX
REDUCTION AS PART OF ELECTION
YEAR FISCAL STIMULUS.
>> HERE'S WHAT I HAVE SAID.
LIZ: YOU JUST SAID NO.
IS IT A NO?
>> LOOK, THE PRESIDENT DIRECTED
ME TO PRODUCE WHAT WE ARE
CALLING TAX CUTS 2.0.
IT WILL BE PUBLISHED SOMETIME
DURING THE CAMPAIGN AS A MESSAGE
FOR FUTURE TRUMP ECONOMIC GROWTH
POLICIES, PARTICULARLY EMPHASIS
ON THE MIDDLE CLASS IN HIS
SECOND TERM.
I DON'T WANT TO DO ANY SPECIFICS
BECAUSE THERE ARE NO SPECIFICS.
WE ARE PULLING IT TOGETHER.
I MET WITH -- FOR 90 MINUTES
WITH KEVIN BRADY, WHO WILL
UNDOUBTEDLY BE THE NEXT WAYS AND
MEANS CHAIRMAN IN THE NEW
CONGRESS.
HE WAS IN THE LAST WHEN WE GOT
THE 2017 TAX CUT.
IT WILL BE ACROSS THE BOARD, IT
WILL HAVE A LOT OF COMPONENTS.
THERE ARE NO SPECIFICS.
CHARLIE SHOULDN'T BE REPORTING
SPECIFICS BECAUSE SPECIFICS
DON'T EXIST.
WE ARE LOOKING AT A VARIETY OF
TAX CUTS, SOMETIMES MAKING
PERMANENT, SOME EXISTING TAX
CUTS, SOME EXISTING CORPORATE
TAX CUT, THERE MAY BE NEW
WRINKLES WE DON'T KNOW ABOUT.
NO COMMITMENTS HAVE BEEN MADE.
WE ARE LOOKING AT -- I HAVE TO
CONSULT WITH OUR FRIENDS IN THE
SENATE.
WE ARE STILL WORKING INTERNALLY,
TREASURY AND SO FORTH, AND SOME
OUTSIDE EXPERTS.
HE'S AHEAD OF THE CURVE.
CHARLIE IS OVER HIS SKIS.
LIZ: AS WALTER REED --
>> GOT TO PULL HIM BACK.
LIZ: WHAT IS GOSSIP ANYWAY BUT
HISTORY RUNNING AHEAD OF ITSELF.
LARRY, THANK YOU.
>> HE'S A GREAT FRIEND BUT HE'S
GOTTEN AHEAD OF THE CURVE.
THERE WILL BE TAX CUTS 2.0.
THERE WILL BE.
LIZ: THANK YOU VERY MUCH.
THE NEXT INTERVIEW, YOU WILL
TELL ME HOW WE WILL PAY FOR ALL
OF THIS.
>> SURE.
BY GROWTH AND PROSPERITY.
LIZ: OKAY.
>> BY THE WAY, AS YOU KNOW, IT'S
THE LOW WAGE EARNERS WHO ARE
WINNING THE WAGE GROWTH BATTLE
RIGHT NOW.
WE HAVEN'T SEEN THIS SINCE THE
1980s.
MOST REMARKABLE THING IN THE
WORLD.
THE LOW WAGE EARNERS, THEY ARE
THE BIGGEST WINNERS FROM THE TAX
CUTS AND THE DEREGULATION AND
THE TRADE.