WE'RE WAITING ON RETAIL SALES
THIS MORNING.
OUR TOP STORY THIS HOUR IS THE
U.S. VERSUS CHINA ON THE TRADE
DEAL.
WHITE HOUSE ECONOMICKED ADVISOR
LARRY KUDLOW SAID THE FIRST
PHASE OF A TRADE AGREEMENT WITH
CHINA IS IN THE FINAL STAGES.
PRESIDENT TRUMP IS NOT READY TO
SIGN IT JUST YET.
THE PRESIDENT WEIGHING IN AT A
RALLY IN LOUISIANA LAST NIGHT.
WATCH.
>> WE'RE MAKING A GREAT DEAL
WITH CHINA.
OR WE'RE TAKING IN BILLIONS IN
TARIFFS.
I CAN LIVE EITHER WAY.
THEY WANT TO MAKE THE DEAL MUCH
MORE THAN I DO.
MARIA: JOINING ME RIGHT NOW IS
COMMERCE SECRETARY WILBUR ROSS.
MR. SECRETARY, ALWAYS A PLEASURE
TO SEE YOU.
THANKS SO MUCH FOR JOINING US.
>> GOOD TO SEE YOU.
MARIA: WHERE ARE WE IN TERMS OF
DOING A DEAL WITH THE CHINESE?
OBVIOUSLY, THIS WEEK WE'VE BEEN
ALL OVER THE MAP.
FIRST THEY WANTED ALL THE
TARIFFS OFF, THE PRESIDENT PUT
WATER ON THAT.
THE PRESIDENT WAS NOT GOING TO
TAKE ANY TARIFFS OFF.
WE'RE STILL EXPECTING A TARIFF
INCREASE IN DECEMBER.
THEN YESTERDAY WE HEARD THE
CHINESE ARE BALKING AT BUYING
THE AMOUNT OF AGRICULTURE THE
PRESIDENT HAS L SIGNALED.
WHERE ARE WE ON THE TRADE DEAL.
>> YOU DON'T HAVE A DEAL ON
ANYTHING UNTIL YOU HAVE A DEAL
ON EVERYTHING.
IT'S NOT SURPRISING THAT AT THE
VERY LAST MINUTE PIECES ARE
BOUNCING AROUND.
BUT I THINK THE MAIN THING IS
WHAT THE BE PRESIDENT SAID AT
THE RALLY LAST NIGHT.
CHINA WANTS TO MAKE A DEAL.
WE THINK WE WOULD LIKE TO MAKE A
DEAL IF IT'S THE RIGHT DEAL.
THIS WILL GET MADE IN ALL
LIKELIHOOD.
MARIA: IN ALL LIKELIHOOD.
WILL THE CHINESE AGREE TO AN
ENFORCEMENT MECHANISM WHERE
THERE ARE CONSEQUENCES IF WE
FIND OUT THEY CONTINUE TO STEAL
INTELLECTUAL PROPERTY?
>> WELL, AS YOU KNOW, THIS PHASE
ONE IS RELATIVELY LIMITED IN ITS
SCOPE.
AND WHAT'S REALLY BEING DEBATED
IS HOW MUCH LIMITATION WILL
THERE BE ON THE SCOPE OF PHASE
ONE RELATIVE TO PHASE TWO OR
MAYBE PHASE THREE.
SO LET'S SEE WHAT COMES OUT.
THE DEVIL IS ALWAYS IN THE
DETAILS.
AND WE'RE DOWN TO THE LAST
DETAILS NOW.
MARIA: THE LAST DETAILS ARE
PROBABLY THE MOST IMPORTANT U,
RIGHT, WILL HAD THEY STOP
STEALING INTELLECTUAL PROPERTY
AND WILL THE PRESIDENT REMOVE
THE TARIFFS.
>> THE PRESIDENT HASN'T AGREED
TO REMOVE THE TARIFFS.
I THINK HE MADE THAT PRETTY
CLEAR THE OTHER DAY.
BUT LET'S JUST SEE WHAT COMES.
I THINK THE IMPORTANT THING IS,
IT LOOKS AS THOUGH THERE WILL BE
THIS FIRST GIANT STEP TOWARD
PEACE AND QUIET WITH THE
CHINESE.
THAT'S THE IMPORTANT THING TO
FOCUS ON.
WE'LL SEE THE DEL TAILS
WE'LL SEE THE TEL TAILS
WE'LL SEE THE TAI TAILS
WE'LL SEE THE TAILSAILS
WE'LL SEE THE TAILS ALS
WE'LL SEE THE TAILS ASS
WE'LL SEE THE TAILS AS THEY COME
-- DETAILS AS THEY COME THROUGH.
THEY'RE GOING TO BE GOOD DETAILS
OR ELSE THE PRESIDENT WILL NOT
GO ALONG WITH IT.
MARIA: THE MOST IMPORTANT, THIS
BIG PHASE ONE IS ABOUT MARKET
ACCESS, SECRETARY?
IS IT JUST ABOUT GIVING
FINANCIAL SERVICES COMPANIES THE
ABILITY TO OWN THEIR COMPANIESES
OUT AND OUT IN CHINA, WHERE AS
RIGHT NOW YOU HAVE TO OWN 49% OF
A JOINT VENTURE WITH THE CHINESE
COMPANY HAVING THE MAJORITY?
>> RIGHT, WELL, IT'S ABOUT A LOT
OF THINGS.
BUT THE MAJOR FOCUS IS THE FOCUS
ON CURRENT TRADE.
THAT'S WHERE THE PRESIDENT WAS
TALKING ABOUT THE 40 TO
50 BILLION IN AGRICULTURE.
ONE OF THE QUESTIONS IS HOW FIRM
IS THAT COMMITMENT GOING TO BE
AND WHAT HAPPENS IF THEY DON'T
LIVE UP TO IT.
THAT KIND OF ISSUE IS REALLY
IMPORTANT TO GETTING THIS PUT
TOGETHER.
MARIA: DO YOU SEE THAT THE
CHINESE ARE BALKING AT THE
AMOUNT OF AGRICULTURE THAT THE
PRESIDENT SAID THAT THEY WOULD
BUY?
DO YOU HAVE AN AGREEMENT THAT
THE CHINESE ARE ACTUALLY GOING
TO BUY THE AGRICULTURE THAT THE
PRESIDENT SAID THAT THEY WOULD?
>> WELL, THEY CAN CERTAINLY
AFFORD TO BUY 40 TO 50 BILLION.
IN FACT, THEY HE'LL REALLY
IN FACT, THEY RE'LL REALLY
IN FACT, THEY REALL REALLY
IN FACT, THEY REALLYREALLY
IN FACT, THEY REALLY NALLY
IN FACT, THEY REALLY NEELY
IN FACT, THEY REALLY NEEDY
IN FACT, THEY REALLY NEED THAT
PHASED IN OVER THE COUPLE OF
YEAR TIME PERIOD.
THE QUESTION IS, ARE THEY
WILLING TO COMMIT TO IT AND IF
THEY ARE WILLING TO COMMIT, ARE
THERE ANY ESCAPE PATCHES TO THE
COMMITMENT.
MARIA: AND THAT'S REALLY THE
IMPORTANT DETAIL.
IS THERE AN ESCAPE PATCH.
JUST LIKE ARE THERE OPEN DOORS
TO HUAWEI TECHNOLOGY.
I WANT TO ASK ABOUT HUAWEI.
ATTORNEY GENERAL WILLIAM BARR
SAYS HUAWEI AND ZTE ARE THREATS
TO NATIONAL SECURITY AND THEY
CANNOT BE TRUSTED.
WHAT DO YOU SAY ABOUT THAT?
>> WELL, AS YOU KNOW, WE HAVE
PUT THEM IN THE PENALTY BOX.
EVIDENCE THEY'VE BEEN PUT ON THE
ENTITY LIST.
AND IT'S OVER THAT KIND OF ISSUE
THAT WE HAVE DONE THAT.
IT'S ALSO OVER THAT KIND
OF ISSUE THAT FCC IS IN THE
PROCESS OF TAKING SOME
DEFINITIVE ACTION.
THESE ARE DANGEROUS SITUATIONS.
5G IS GOING TO BE RUNNING
EVERYTHING.
IT'S THE INTERNET OF THINGS.
IF SOMEBODY CAN DO EVIL IN THE
CONTEXT OF 5G, THEY CAN DO REAL
EVIL TO THE WHOLE COUNTRY.
WE CAN'T AFFORD TO LET THAT
HAPPEN.
WE IN THIS COUNTRY HAVE MADE THE
DECISION HUAWEI IS NOT AN
APPROPRIATE PLAYER TO HAVE
CONTROL OF OUR 5G MARKET AND A
NUMBER OF OTHER COUNTRIES ARE
ALSO FOLLOWING US.
ATTORNEY GENERAL BARR HEADS UP
THE DEPARTMENT THAT BROUGHT
INDICTMENTS AGAINST HUAWEI THAT
ARE IN COURT RIGHT NOW AND
HUAWEI HAS LET THEIR CHIEF
FINANCIAL OFFICER, WHO IS ALSO
THE DAUGHTER OF THE MAIN
SHAREHOLDER, HAVE LET HER STAY
UNDER HOUSE ARREST IN CANADA FOR
A YEAR NOW, RATHER THAN LET HER
TESTIFY.
IF THEY HAVE NOTHING TO R WORRYW
IF THEY HAVE NOTHING TO R WORRYR
IF THEY HAVE NOTHING TO R WORRYY
ABOUT, WHY ARE THEY LETTING HER
BE STUCK IN HOUSE ARREST FOR A
YEAR RATHER THAN HAVE HER COME
DOWN AND DEFEND HERSELF?
MARIA: I MEAN, IF HUAWEI IS
SUCH A QUESTION, SUCH A RISK,
WHY WOULD WE HAVE THESE WAIVERS
IN PLACE?
THE DEADLINE IN TERMS OF WAIVERS
FOR AMERICAN COMPANIES TO WORK
WITH HUAWEI IS COMING UP.
IS THERE ANY REASON TO BELIEVE
THAT THESE WAIVERS ARE GOING TO
BE LIFTED?
>> WELL, LET'S HE FOCUS ON WHAT
WE REALLY MEAN BY WAIVERS.
WHAT WE'VE GIVEN IS A TEMPORARY
GENERAL LICENSE, MAINLY SO THAT
THE RURAL TELECOM COMPANIES IN
THE U.S. CAN CONTINUE TO
FUNCTION.
THEY UNFORTUNATELY ARE VERY
DEPENDENT ON HUAWEI FOR 3G AND
4G.
THERE ARE A
THERE ARE ENOUGH PROBLEMS WITH
TELEPHONE SERVICE IN THE RURAL
COMMUNITIES.
WE DON'T WANT TO KNOCK THEM OUT.
SO ONE OF THE MAIN PURPOSES OF
THE TEMPORARY GENERAL LICENSES
IS TO LET THOSE RURAL GUYS
CONTINUE TO OPERATE.
THAT DOESN'T HAVE ANYTHING TO DO
WITH HUAWEI'S EFFORTS IN 5G.
WHAT THE ATTORNEY GENERAL WAS
TALKING ABOUT AND WHAT WE'RE
REALLY FOCUSING ON IS THE 5G.
CAN YOU TRUST HUAWEI TO BE THE
5G SUPPLIER FOR YOUR COUNTRY?
OUR CONCLUSION THUS FAR IS NO.
MARIA: WHAT IS IT GOING TO TAKE
FOR EUROPE TO BETTER UNDERSTAND
THIS, SECRETARY?
BECAUSE IT FEELS LIKE THE
EUROPEANS HAVE THEIR HUAWEI
INFRASTRUCTURE IN PLACE AND IT'S
EXPENSIVE TO DISMANTLE IT AND
CHANGE IT.
DO YOU SEE ANY CHANGE IN TERMS
OF THE EUROPEANS?
BECAUSE SECRETARY POMPEO TOLD ME
THAT IF THE EUROPEANS CONTINUE
TO USE HUAWEI, WE'RE GOING TO
SHARE LESS INFORMATION WITH
THEM.
>> WELL, REMEMBER, EUROPE IS
NOT ONE MONOLITH.
SOME OF THE COUNTRIES INDICATED
THEY MIGHT USE HUAWEI FOR 5G,
SOME HAVE INDICATED THEY HAVE
NOT.
BORIS JOHNSON, FOR EXAMPLE, HAS
SAID THAT THAT MATTER IS UNDER
REVIEW IN THE U.K.
SO I DON'T THINK IT'S QUITE
ACCURATE TO SAY THAT ALL OF
EUROPE IS GOING TO USE HUAWEI.
PROBLEM IS, SOME PEOPLE ARE
TEMPTED BY LOW PRICE AND THAT'S
A REAL DANGEROUS TRAP.
ARE YOU WILLING TO SETTLE FOR A
HUGE RISK TO YOUR NATIONAL
SECURITY, JUST TO SAVE A FEW
BUCKS ON THE INSTALLATION OF
YOUR 5G SYSTEM?
UNITED STATES FEELS WE'RE NOT.
MARIA: YEAH.
IT'S A REALLY IMPORTANT POINT
THAT YOU MADE.
SECRETARY, REAL QUICK ON THIS
DEAL THAT THE U.S. IS
NEGOTIATING.
WANT TO GET TO USMCA.
BUT AS MY FINAL QUESTION ON
THIS, DO YOU EXPECT WE'LL GET TO
A PHASE ONE DEAL WITH THE
CHINESE?
>> I THINK THERE'S A VERY HIGH
PROBABILITY OF IT.
AT THE LAST MINUTE, WE WERE
DISAPPOINTED IN MAY.
MAYBE WE GET DISAPPOINTED AGAIN
NOW.
AND IF WE DO, THE PRESIDENT HAS
MADE QUITE CLEAR HE'S HAPPY TO
LIVE WITH THIS SITUATION WHERE
WE IMPOSE TARIFFS.
SO WE'RE REALLY IN A WIN-WIN
POSITION.
EITHER THE TARIFFS WILL CONTINUE
OR WE'LL HAVE AN ACCEPTABLE DEAL
WITH CHINA.
SO THE IMPORTANT THING IS TO
MAKE SURE THAT THE DEAL IS WHAT
WE THINK IT IS, MAKE SURE THAT
IT IS CONSISTENT WITH THE
PROMISES THAT THEY'VE MADE TO
US.
IF IT IS WHAT IT SEEMS TO BE,
AND IF IT'S CONSISTENT, THEN
WE'LL HAVE A DEAL.
MARIA: IT FEELS LIKE WE'RE IN
THE SAME PLACE THAT WE WERE LAST
WEEK.
IS THERE ANY REASON TO BE
OPTIMISTIC HAD THAT WE'RE ANY
CLOSER THIS MORNING?
>> OH, YEAH.
WE'RE MUCH FARTHER ALONG IN
TERMS OF DETAIL.
THERE ARE CALLS ALL THE TIME,
ANOTHER CALL TODAY.
THERE'S A LOT OF WORK BEING PUT
IN ON THIS.
THIS IS NOT A THING WHERE PEOPLE
ARE JUST SITTING AROUND
STAR-GAZING.
PEOPLE ARE WORKING QUITE
ACTIVELY ON A REAL-TIME BASIS TO
TRY TO PUT THIS TOGETHER.
IT'S A LITTLE UNFORTUNATE THAT
WHEN THE CHILEAN CONFERENCE
WHERE IT WAS TO BE ANNOUNCED GOT
PUT OFF, IT ELIMINATED A VERY
IMPORTANT DEADLINE.
IT'S GREAT TO HAVE A DEADLINE
WHEN YOU'RE HAVING NEGOTIATIONS.
NOW THAT THAT DEADLINE GOT
REMOVED, THROUGH NO FAULT OF THE
CHINESE AND THROUGH NO FAULT OF
OURS, IT TAKES OFF A LITTLE BIT
OF THE TIME PRESSURE.
I THINK THAT'S REALLY WHAT WE'RE
DEALING WITH.
MARIA: I SEE.
SO THE WORK THAT'S HAPPENING NOW
IS TRYING TO GET THE CHINESE TO
UNDERSTAND THAT WE NEED AN
ENFORCEMENT MECHANISM IN THERE?
IS THAT ONE OF THE MAIN ISSUES?
>> WHAT'S HAPPENING NOW IS TO
MAKE SURE WE ARE PRECISE IN WHAT
THE PARTIES HAVE AGREED TO AND
WHAT ARE THE CONGES
WHAT ARE THE CONSES
WHAT ARE THE CONSEQUENCES IF
THEY DON'T LIVE UP TO THE
AGREEMENT.
MARIA: I SEE.
AND IS THE DECEMBER 15th
DEADLINE FOR THE TARIFFS, IS
THAT A DATE YOU'RE GOING TO
UPHOLD WHEREAS THE TARIFFS WILL
GO -- AN INCREASE IN TARIFFS GO
INTO EFFECT DECEMBER 15?
>> THE PRESIDENT HASN'T
INDICATED ANY CHANGE THUS FAR.
AND THERE'S PLENTY OF TIME
BETWEEN NOW AND THE 15th.
SO LET'S SEE WHAT HAPPENS IN THE
REAL WORLD, RATHER THAN JUST
SPECULATE AS TO WHAT MIGHT BE.
MARIA: SO YOU WANT TO TRY TO
GET A DEAL DONE BEFORE THE
DECEMBER 15th TARIFF INCREASE
GOES INTO EFFECT?
>> I'M PRETTY SURE THE CHINESE
WOULD LIKE TO HAVE IT DONE TOO.
MARIA: SURE, YES.
>> IF THERE'S NO DEAL, THERE'S
NOT VERY MUCH PROBABILITY OF ANY
RELIEF ON THE TARIFFS.
MARIA: THE USMCA STORY FEELS
BETTER THIS MORNING, SECRETARY.
LET ME ASK YOU ABOUT THAT.
HOUSE SPEAKER NANCY PELOSI SAID
THAT A TRADE PACT BREAKTHROUGH
WITH THE TRUMP ADMINISTRATION
COULD BE NEAR.
LISTEN TO THIS.
>> WE ARE MOVING POSITIVELY IN
TERMS OF THE U.S., MEXICO,
CANADA AGREEMENT.
I DO BELIEVE THAT IF WE CAN GET
THIS TO THE PLACE IT NEEDS TO
BE, WHICH IS IMMINENT, THAT THIS
CAN BE A TEMPLATE FOR FUTURE
TRADE AGREEMENTS.
I'D LIKE TO SEES US GET IT DONE
THIS YEAR.
THAT WOULD BE MY GOAL.
I DON'T IMAGINE THAT IT WOULD
TAKE MUCH MORE IN THE SENATE TO
PASS.
MARIA: SECRETARY, I THINK THERE
ARE ABOUT, WHAT, 14 DAYS LEFT
FOR THE REST OF THE YEAR WHERE
CONGRESS IS IN SESSION.
>> RIGHT.
MARIA: DO YOU EXPECT A DEAL?
>> CONGRESS DOESN'T WORK EVERY
DAY.
SO YOU'RE RIGHT, IT'S PROBABLY
ABOUT 14 DAYS LEFT.
BUT AS TO WHAT SPEAKER PELOSI
WAS SAYING, THIS DEAL ALREADY IS
A VERY GOOD TEMPLATE FOR FUTURE
DEALS.
IT'S MUCH STRONGER ON THE ISSUES
THE DEMOCRATS CLAIM TO BE
CONCERNED ABOUT THAN THE OLD
U.S. NAFTA DEAL.
AND IT'S MUCH BETTER ON THE
ISSUES OF LABOR, ENVIRONMENT,
AND ESPECIALLY ECONOMICS AND
PROTECTIONS THAN ANY TRADE DEAL
IN THE HISTORY OF THE U.S. HAS
EVER BEEN.
SO THERE IS NO SUBSTANCE TO
THEIR CONTINUED DELAY.
THEY'VE COST THE ECONOMY
BILLIONS OF DOLLARS ALREADY BY
DELAYING AS LONG AS THEY HAVE.
IT'S TIME TO GET SERIOUS.
IT'S TIME TO PAY ATTENTION TO
SOMETHING THAT REALLY HELPS
EVERYDAY AMERICANS INSTEAD OF
HAVING THESE SILLY HEARINGS.
MARIA: DO YOU BELIEVE THAT SHE
COULD CONTINUE WITH HER PUBLIC
HEARINGS TO TRY TO IMPEACH THIS
PRESIDENT WHILE ALSO TRYING TO
GET USMCA OVER THE FINISH LINE?
DO YOU THINK THIS DEAL HAPPENS?
WILL IT PASS BY YEAR-END?
>> I THINK THERE'S NO QUESTION
THAT IF SHE PUTS IT ON THE
FLOOR, IT WILL BE OVERWHELMINGLY
VOTED.
SO THE REAL QUESTION IS WHEN OR
IF SHE'S WILLING TO PUT IT ON
THE FLOOR.
MARIA: YEAH.
SO WE DON'T KNOW.
DO YOU THINK SHE WILL?
>> I HOPE SO.
FOR THE GOOD OF THE COUNTRY, HAD
THAT WOULD BE THE SINGULAR
ACCOMPLISHMENT OF THIS CONGRESS
WOULD BE FINALLY GOING ALONG.
REMEMBER, THEY'VE BEEN FOOLING
AROUND WITH THIS FOR A YEAR.
MARIA: I KNOW THAT.
>> FOR A YEAR.
MARIA: MR. SECRETARY, GREAT TO
HAVE YOU THIS MORNING.