Larry Kudlow breaks down first phase of China trade deal

White House economic adviser Larry Kudlow said the first phase of a U.S. trade deal with China is progressing nicely, despite a news report suggesting wariness in Beijing.

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Although the pact is not entirely complete, President Trump has been optimistic and top U.S. and China trade officials are in the process of negotiating, he told FOX Business’ Stuart Varney.

“The agriculture chapter is virtually completed,” Kudlow said on Friday, adding that “it also will open up and reduce a lot of barriers and onerous regulations.”

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Kudlow said the financial services section, which gives American companies the ability to get to 100 percent ownership of operations in the country, and the currency stability portion are “virtually wrapped up.”

White House chief economic adviser Larry Kudlow calls on a reporter as he answers questions outside the White House. (AP Photo/Evan Vucci)

There’s been “some progress” on forced transfer of technology, he said, but that will slip into the second phase of trade talks. A complete agreement may take three phases, according to the president, who initiated a trade fight with China by imposing duties on billions of dollars worth of the country's imports in hopes of forcing talks and a trade treaty.

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Trump has tweeted that he’s looking forward to completing phase one and finding a new venue for a signing ceremony with President Xi Jinping after Chile scrapped the Asia-Pacific Economic Cooperation summit.

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