Chinese officials who arrived in Washington on Tuesday for trade talks with the U.S. will likely present a proposal for the U.S. trade delegation on Wednesday, possibly extending the negotiating process, according to Larry Kudlow, chief economic adviser to President Trump.
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“We expect they may have a proposal for us, which would extend the conversation and permit additional negotiations,” he told FOX Business’ Ashley Webster during an interview on Thursday. “In other words, I’m kind of positive on this story.”
Trump has been insistent about reducing the trade deficit between the two countries by $200 billion from the current $370 billion. The White House has blamed the deficit for the loss of millions of U.S. jobs, which it says are then added to the Chinese economy.
Led by Treasury Secretary Steven Mnuchin, the U.S. negotiating team plans to ask the Chinese to change their trade approach in a number of areas, including opening their markets, lowing their trade and non-trade barriers and allowing additional American exports, Kudlow said.
But when the U.S. delegation met with officials in Beijing last week, no deal was reached in large part because China refused a demand to cut the trade deficit by $200 billion within the next two years.
“We have an opportunity here to bring some significant changes to China-American trade policy,” Kudlow said. “Changes, by the way, [that] will make for fairer and more legal trading practices.”
Trump will be meeting with China’s Vice Premier Liu He at the White House Thursday afternoon, Kudlow said, adding there’s “great interest” in furthering the potential deal and negotiations.