>>> HE MAY GIVE ZTE A PASS AS
PART TRADE DEAL.
>> THEY DID VERY BAD THINGS TO
OUR COUNTRY.
THEY DID VERY BAD THINGS TO OUR
ECONOMY BUT THE PRESIDENT OF
CHINA, PRESIDENT XI, ASKED ME TO
LOOK AT IT.
I SAID I WOULD LOOK AT IT.
BUT, ANYTHING WE DO WITH ZTE IS
ALWAYS, IT IS JUST A SMALL
COMPONENT OF THE OVERALL DEAL.
TRISH: WHAT DOES HE MEAN BY
THAT?
JOINING ME NOW NATIONAL ECONOMIC
COUNCIL DIRECTOR
MR. LARRY KUDLOW.
LARRY, IT IS GOOD TO SEE YOU.
>> HELLO, TRISH, THANKS FOR
HAVING ME.
APPRECIATE IT VERY MUCH.
TRISH: WE GO WAY BACK.
VIEWERS MAY NOT KNOW THIS, LARRY
AND I DID A SHOW TOGETHER AT ONE
POINT IN TIME.
GOOD TO SEE YOU, SIR.
I KNOW YOU HAVE A LOT GOING ON.
>> YOU'RE A STAR, TRISH.
I'M PROUD OF YOU.
BEFORE WE ENGAGE ON THIS I WANT
TO SEND MY OWN PERSONAL HEART
AND CONDOLENCES TO THE VICTIMS
OF THIS TERRIBLE TEXAS SHOOTING.
I WANT TO PUT THAT OUT THERE.
I KNOW WE'RE HEAR TO TALK
BUSINESS, BUT GOD HELP THEM.
TRISH: I'M GLAD YOU DID.
THESE DAYS ARE TOUGH, TOUGH
DAYS.
UNFORTUNATELY WE'VE HAD FAR TOO
MANY OF THEM.
OUR KIDS SHOULD FEEL SAFE WHEN
THEY GO TO SCHOOL.
THAT SHOULD BE ONE OF THE THINGS
SOAR OF GIVEN.
LARRY, THANKS FOR ADDRESSING
THAT.
I KNOW YOU'VE BEEN INVOLVED IN
SOME OF MEETINGS TODAY.
WILL THE PRESIDENT DO A DEAL
HERE WITH A CHINESE TELECOM
COMPANY?
>> IT IS NOT THE TELECOM COMPANY
WHO IS THE CENTER.
THE TELECOM COMPANY WAS
ENFORCEMENT MEASURE I GUESS HAS
BEEN CONNECTED TO THE TRADE
MEETING MAY HAVE MORE TO DO WITH
THE KOREAN PENINSULA TO TELL YOU
THE TRUTH.
PRESIDENT TRUMP AND PRESIDENT XI
ARE, YOU KNOW, WORKING TOGETHER
ON A LOT OF THINGS.
LET ME BE VERY CLEAR THOUGH.
WE'RE TALKING ABOUT REMEDIES
HERE.
WE'RE NOT TALKING ABOUT LET THEM
OFF SCOTT-FREE BY ANY STRETCH.
THIS CAME UP IN OUR DISCUSSIONS
YESTERDAY.
COMMERCE SECRETARY WILBUR ROSS
IS HAVING A SECOND LOOK AT
REMEDIES.
IF THERE IS, IF THERE ARE ANY
STRUCTURAL CHANGES IN THEIR CASE
THEY WILL BE VERY HARSH, TRUST
ME ON THIS, HUGE --
TRISH: SPECIFICALLY TO ZTE?
>> YES, ZTE.
CHANGE OF MANAGEMENT.
CHANGE OF BOARD.
CHANGE OF EVERYTHING.
SO I WANT TO -- IT'S THERE.
I DON'T KNOW, IT IS UP TO
MR. ROSS WHO WILL MAKE A
RECOMMENDATION TO THE PRESIDENT.
IT ES NOT BY ANY STRETCH EVEN
REMOTELY CENTRAL TO THE TRADE
DEAL.
TRISH: I GUESS IT IS LEFT SOME
PEOPLE A LITTLE BIT CONFUSED,
RIGHT?
ON THE ONE HAND YOU HAVE THE
PRESIDENT SAYING LOOK, WE NEED
TO FIX THIS SITUATION THIS VERY
POOR SITUATION WITH CHINA.
ON OTHER HAND PRESIDENT XI SAYS
WILL YOU LOOK AT THIS?
HE SAYS SURE I WILL LOOK AT IT.
THE LIKES OF CHRISTOPHER WRAY
FROM THE FBI SAYING THIS IS KIND
OF DANGEROUS.
IF ZTE IS ABLE TO FUNCTION HERE
AS NORMAL, OUR SECURITY COULD
POTENTIALLY BE AT RISK?
>> THE KEY POINT IN ALL OF THIS
IS THE TRADE TALKS ARE GOING
VERY WELL.
I MEAN ACTUALLY, PRESIDENT
HIMSELF IS SHOWING MORE
ENTHUSIASM AND OPTIMISM ABOUT
THIS TRADE DEAL THAN I EVER SEEN
HIM IN THE WHOLE DISCUSSIONS
GOING BACK MANY, MANY WEEKS AND
VICE PREMIER HE GAVE A
PRESENTATION TO SMALL GROUP OF
US IN THE OVAL.
HE OUTLINED A WHOLE BUNCH OF
REMEDIES FOR THE TRADE DEFICIT
ISSUES, THE BARRIERS, THE
TEMPORARY RIFF AND NON-TARIFF
BARRIERS AND THE TECHNOLOGY
PROBLEMS.
PRESIDENT TRUMP WAS VERY
ENGAGED.
I'M ONLY DOWN HERE A COUPLE
MONTHS NOW BUT I HAVE WORKED
WITH HIM DOWN THROUGH THE YEARS.
HE IS REALLY MUCH MORE
OPTIMISTIC THAN I HAVE EVER SEEN
AND I THINK THIS IS A GOOD THING
BECAUSE IT WILL OPEN THE DOOR
FOR FLOODING AMERICAN EXPORTS
WOULD BE GREAT FOR OUR COMPANIES
AND WORKFORCE AND OUR
PRODUCTIVITY AROUND TRY TO MOVE
CHINA INTO THE 21ST CENTURY.
THEIR UNFAIR TRADING PRACTICES
STUFF NOBODY USES ANYMORE
THEY'RE STILL USING.
>> LARRY, THE PRESIDENT
ARTICULATED THIS AS WELL.
HE USED AN EXAMPLE I USED ON
THIS SHOW, IF YOU SEND A CAR TO
CHINA YOU WILL GET SLAPPED WITH
25% TARIFF.
WE DO A FRACTION OF THAT IF THE
CHINESE SEND A CAR HERE.
WHY DON'T WE HAVE A SYSTEM WHERE
WE SEND AS MANY CARS BACK AND
FORTH AS WE WANT AND NOBODY IS
ENGAGING ANY TARIFFS?
IS THERE A RELATIONSHIP WE CAN
ENVISION WITH CHINA THE HECK
WITH ALL THE TARIFFS ON BOTH
SIDES?
>> I'M WITH YOU.
I WOULD LIKE TO TEAR DOWN ALL
THE BARRIERS, TARIFFS AND
NON-TARIFFS.
I THINK THAT IS GOOD FOR
ECONOMIC GROWTH.
LOOK, AT THE MOMENT THERE IS NO
DEAL.
WE'RE JUST STARTING OUT THE
PROCESS BUT WE'RE MOVING IN THAT
DIRECTION, AND THAT IS THE BEST
PART.
MY ARGUMENT, I'M A GROWTH GUY.
THINK OF THIS FOR A MINUTE.
IF THE CHINESE WERE KNOCK DOWN
THE TARIFFS, THEIR OTHER
BARRIERS, TECHNOLOGY ISSUES, LET
AMERICANS SELL.
WE'RE WITH TAX REFORM AND
DEREGULATION AND SO FORTH, WE'RE
CAPITAL RICH ALL OF SUDDEN.
THEY WILL SELL TONS MORE GOOD AS
EXPORTS IF THEY LET US.
THAT IS A GOOD WAY TO REDUCE THE
TRADE DEFICIT THAT A GROWTH
SOLUTION.
BY THE BY, IT WILL CHEP CHINA.
BY THE BY IT WILL HELP THE REST
OF THE WORLD.
THE TALKS I DON'T WANT TO COME
TO CONCLUSION.
WE'RE HEAVILY INTO IT ON BOTH
SIDES THERE.
IS LOT OF OPTIMISM ON THE U.S.
SIDE FRANKLY I DIDN'T SEE WHEN