Pacific trade pact wasn’t meant to contain China: Bob Hormats
Former Undersecretary of State Bob Hormats said on Tuesday that the Trans-Pacific Partnership (TPP) was never intended to contain China, but meant to establish rules that were conducive to U.S. market conditions.
“It had a number of elements that reduced the degree to which government would support state enterprises,” Hormats told FOX Business’ Liz Claman. “It did a lot of things that would have made it more market-oriented.”
President Donald Trump is thinking about ordering a re-examination of the TPP spearheaded by Larry Kudlow, the National Economic Council director, and the top trade negotiator, Robert Lighthizer.
“One of the goals here has to be economic growth, rising wages and rising jobs, just like every other aspect of the Trump program,” Kudlow told FOX Business’ Lou Dobbs last week.
The U.S. Commerce Department announced Monday its banning of ZTE Corp., a Chinese tech firm, from buying American components.
“ZTE made false statements to the U.S. Government when they were originally caught and put on the Entity List, made false statements during the reprieve it was given, and made false statements again during its probation,” Commerce Secretary Wilbur Ross said in a statement.
Treasury Secretary Steven Mnuchin is expected to announce new investment restrictions on Chinese investments in U.S. technology.
Hormats said the Treasury Department must identify the security risks that foreign investments impose on the U.S.
“[Mnuchin] is going to have to figure out the right balance,” Hormats said. “What the restrictions are going to be and how you define a national security risk is something he’s going to have to work out.”