China is very important to the whole economy: Carl Icahn
Legendary investor Carl Icahn told FOX Business that it is “mandatory” for the U.S. to strike a trade deal with China so long as the Trump administration ensures that America is protected from Beijing’s intellectual property theft and unfair trade practices.
“I think that it's mandatory that we do a deal with China and work it out,” Icahn said on Monday. “I think Donald Trump understands, hopefully he understands, how important it is.”
The billionaire activist investor said China’s ability to produce goods at a lower labor cost prevents rising prices in the U.S.
“I feel China is extremely important to our economy,” Icahn said during an exclusive interview on “Cavuto: Coast-to-Coast.” “China keeps us from having inflation or partially keeps us from having inflation because of the cheap goods.”
The ongoing trade battle between the world’s two largest economies has affected U.S. stocks as investors’ concerns continue to grow over its economic impact.
“Figuring it out, what the stock market is going to do, is almost futile,” Icahn said. “I say too many variables and the risk could be too modest, we probably have the best record on Wall Street.”
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On Sunday, President Trump cited the weakening Chinese economy as a signal that talks on a trade deal with Beijing are progressing.
“The tariffs have absolutely hurt China very badly,” Trump told reporters outside the White House before leaving on Marine One for a trip to Camp David. “I think China wants to get it resolved. Their economy’s not doing well.”