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“How do we ‘punish’ China?” Varney asked. “We don't like their deceptive response to the virus. We don't like them stealing our technology. And we don't care for their drive for dominance of key industries. So what do we do about it?”
Varney noted several U.S. senators have said they want to take China’s money.
“‘Sue 'em,’ says Martha McSally. ‘Don't pay 'em what we owe 'em,’ says Marsha Blackburn. ‘Don't buy Chinese products,’ says Rick Scott,” Varney added.
Varney said America is beginning to take action towards “punishing” China.
“The U.S. has just blocked the sale of some computer chips to Huawei, China's most important technology company,” he said. “That’s straight forward punishment: cut 'em off because we think you're using Huawei to spy on us. The market came down on that because of the possible reaction against Apple and Boeing.”
Varney also said there’s progress in bringing jobs to the U.S.
“A Taiwanese chipmaker will break ground next year on a $12 billion factory near Phoenix, Arizona. That's straight forward: bring back the jobs.”
Mike Pompeo has said this strengthens national security, Varney noted, and blocks China from controlling critical industries.
“That brings up the supply chain problem: China does indeed dominate critical industries,” Varney said. “They control 80 percent of the ingredients for pharmaceutical products. The president is reportedly preparing an executive order that would require certain vital drugs and treatments to be produced in America. We haven't produced penicillin here in 15 years.”
Varney believes the U.S.-China relationship is important for President Trump’s reelection strategy.
“There's plenty of anger about China and the virus," Varney said. "Mr. Trump says if they'd handled it differently, the worldwide catastrophe could have been avoided. He wants to hold them ‘accountable.'"
However, Varney believes lawsuits won't be effective because both sides will have an “army of lawyers” and the proceedings would go on for years.
“Refusing to pay back the money they have loaned us would be a financial catastrophe. America has never reneged on its debt,” Varney said. “If we did with China, who would lend us money again? Far better to bring back the jobs. Far better to shift the supply chain. Far better to block their spying activities.”