President Trump has directed the Commerce Department to look into easing USA economic sanctions against China's major telecommunication company linked to illicit trade with rogue states.
Kudlow, speaking in a live interview with Politico news outlet, said he backed U.S. Treasury Secretary Steven Mnuchin's efforts to reach an agreement with Beijing and that both countries must take action.
The Office of the U.S. Trade Representative (USTR) said on Monday that it will hold public hearings on the Trump administration's proposed tariffs on approximately 50 billion U.S. dollars worth of imported Chinese goods from Tuesday to Thursday. "It's not clear, of course, if he's planning to really reverse it or think of a solution in a larger context, but it is something that is just out of the norm", said Amanda DeBusk, the chair of the global trade and government regulations practice at the firm Dechert, LLP.
"Trade negotiations are continuing with China".
Earlier this month, the U.S. presented China with a list of demands that tackle allegations of intellectual property theft and other trade policies Washington considers unfair, which had sparked the initial "trade war" concerns as the two countries were imposing tens of billions of dollars in tariffs on each other.
Ministry spokesman Lu Kang also said China appreciated tweets by Trump saying he would help ZTE Corp. get "back into business" because too many jobs in China are at stake after the USA government cut off access to ZTE's American suppliers.
As of Monday, the USTR's Office has received over 2,700 filings of written comments regarding the administration's tariff approach, with major USA business groups opposed to tariffs on Chinese products. "Stay tuned!" Trump tweeted on Tuesday.
At the Beijing talks, the Trump administration handed China a list of hard-line demands that trade experts said could make it even more hard to resolve the trade disputes.
ZTE reached a settlement in March 2017 for violating USA export laws and paid penalties totaling $1.19 billion.
Washington listed the items from China it proposes will be hit with an additional duty of 25% but within hours, Beijing hit back, announcing its own plans to levy a 25% tariff on U.S. imports that included beef, soybeans and whiskey.
Branstad, speaking at a conference in Tokyo, said the Chinese appeared "taken back" by the significance of the list. "So they can't say they don't know what we're asking for", he said. China's Commerce Ministry has pledged to immediately.
ZTE had warned last month that the ban on USA firms supplying it with components threatened its very survival.
Increasing U.S. exports of liquefied natural gas could also be an area where the two countries could agree, he said. China, for its part, has stated that it is willing to buy more American goods and services to help reduce the trade deficit.
Despite now ceasing main business operations, China's second biggest telecom equipment maker is still trying to have the ban modified or reversed.