Trade law Section 301 is not a bargaining chip: Peter Navarro


OUR NEXT GUEST CONTINUE TO THE FIGHT AGAINST CHINA’S TRADE PRACTICES. JOINING US IS PETER NAVARRO, TOP TRADE ADVISOR TO THE PRESIDENT. GOOD TO HAVE YOU WITH US. I KNOW YOU ARE DOING WELL. THE IMPOSITION OF 301. THIS ADMINISTRATION HAS DONE MORE WITH THE 301s THAN THE PREVIOUS ADMINISTRATION CON TELL PLATED THROUGH ITS TWO TERMS IN OFFICE. LOU: WE’LL INSIST UPON IT.>>THIS PRESIDENT IS TOUGH AS NAILS ON TRADE AND NATIONAL SECURITY. THIS INVESTIGATION COMBINES THOSE TWO THINGS. HAIRS WHAT WE — HERE IS WHAT WE KNOW. CHAIN A STEALS OUR ASK INTELLECTUAL PROPERTY AND FORCES THE TRANSFER OF THAT TECHNOLOGY FROM AMERICAN COMPANIES ON CHINESE SOIL TRYING GET ACCESS TO THE MARKETS. IT REQUIRES COMPANIES IN SILICON VALLEY AND EVADE OUR EXPORT CONTROL LAWS. HERE IS THE THING. LOU: IT IS BEING ADJUDICATED BEFORE THE WORLD TRADE ORGANIZATION. THIS AUDIENCE HERE HEARD THE REPORTS ON THAT.>>LET’S UNDERSTAND WHY THESE TARIFFS — LOU: I’M GOING TO ASK THE QUESTIONS HERE, PETER AND I WILL SEEK ANSWERS FROM YOU. I FEEL SOMEWHAT IRRELEVANT IF YOU ASK BOTH THE QUESTIONS AND PROVIDE ANSWERS.>>GO AHEAD. LOU: LET’S START WITH $50 BILLION. YOU ARE TALKING ABOUT A TRADE RELATIONSHIP THAT IS OVER $600 BILLION IN THE TRADE RELATIONSHIP BETWEEN THE TWO COUNTRIES. THESE ARE PEANUTS. THIS IS KNEE NUTS. SO WHAT — THIS IS PEANUTS. SO WHAT WILL BE THE IMPACT OF THESE 301Ks IF WE GET TO JUNE 15 AND THERE IS NO DEAL?>>THE PURPOSE IS TO STOP CHINA FROM STEALING THE CROWN JEWELS OF OUR TECHNOLOGY. LOU: TOO LATE. WE ALREADY LOST THE TRADE WAR.>>THE PURPOSE OF THE TARIFFS TARGETED AT THE CHINA 2025 INDUSTRIES, ARTIFICIAL INTELLIGENCE AND ROBOTICS. IT TO DEFEND OUR INDUSTRIES THAT ENGAGE IN RESEARCH AND DEVELOPMENT. CHINA HAD HAS A PREDATORY MODEL WHERE THEY COME IN AND TRY TO STEAL THEM FROM US. THE PURPOSE OF THE TARIFFS, AND INVESTMENT RESTRICTIONS ARE TO PREVENT CHINA FROM BUYING THOSE COMPANIES WE NURTURE HERE. THIS 301 INVESTIGATION FOCUSES SOLELY ON TECHNOLOGY. IT’S NOT A BARGAINING CHIP. WHATEVER DEAL MIGHT BE MADE, THIS IS NOT A BARGAINING CHIP. THESE TARIFFS WILL BE PUT INTO PLACE TO PROTECT AND DEFEND OUR TECHNOLOGIES. WE HAVE ANOTHER PROBLEM WITH THE $500 BILLION WORTH OF TRADE EXPORTS CHINA SEND TO US. THAT’S WHERE THE DEAL MAKING NEED TO BE DONE. BUT THIS IS NOT BARGAINING CHIPS, LOU. THIS WILL HAPPEN JUNE 15. THE PRESIDENT IS STRONG AND TOUGH AND RESOLUTE ON THAT. HE PROMISED THIS DURING THE CAMPAIGN THAN IS A STRAIGHT LINE BETWEEN HERE, THE 301 INVESTIGATION HE ORDERED, THE RESULTS OF THAT 301 INVESTIGATION AND THE DECISION HE MADE TODAY TO IMPOSE THOSE TARIFFS AND RESTRICTIONS. LOU: THE ZTE ACCOMMODATION TO PRESIDENT XI?>>I WANT TO CONTINUE TO BE CLEAR ABOUT THIS. LOU: IF YOU CONTINUE TO BE CLEAR WE’LL HAVE A WONDERFUL EVENING.>>ZTE IS A LAW ENFORCEMENT ISSUE, NOT MY LANE. LOU: A NATIONAL SECURITY ISSUE.>>INDEED IT IS. SECRETARY MNUCHIN AND WILBUR ROSS ARE THE ONES TO TALK ABOUT ON THAT ISSUE. THAT’S NOT SOMETHING I CAN TALK ABOUT BECAUSE OF THAT. LOU: OKAY. SO YOU DON’T THINK THAT THE SANCTIONS SHOULD BE HANDLED AS SIMPLY A NATIONAL SECURITY ISSUE RATHER THAN A RESPONSE IN TRADE. THE PRESIDENT OBVIOUSLY REACTED AS IF IT WERE A TRADE ISSUE. HE’S MAKING A PERSONAL EXEMPTION FOR ZTE DESPITE 7 YEARS OF VIOLATING U.S. SANCTIONS WITH NORTH KOREA AND IRAN.>>I FULLY UNDERSTAND THAT, LOU, BUT I’M UNDER DIRECTIONS. IT’S A LAW ENFORCEMENT ISSUE. LOU: WHO TOLD YOU IT WAS A LAW ENFORCEMENT ISSUE IT’S A NATIONAL SECURITY ISSUE. HOW DO YOU SEPARATE NATIONAL SECURITY FROM INTERNATIONAL TRADE WITH A COMMUNIST COUNTRY THAT IS RIGHT NOW BEING VERY PROVOCATIVE WHEN WE CARRY OUR FREEDOM OF NAVIGATION MISSIONS, THE U.S. NAVY DOES, IN THE SOUTH CHINA SEA. THIS IS BECOME A RATHER BRITTLE MATTER, ISN’T IT?>>THE FREEDOM OF NAVIGATION ISSUE IS FRONT AND CENTER. CHINA IS BUILDING THESE LARGE ISLANDS, ARTIFICIAL ISLANDS. LOU: MILITARIZING THEM.>>THE U.S. NAVY IS WORRIED ABOUT THAT. THE PHILIPPINES AND VIETNAM. THIS IS WHAT CHINA IS DOING IN THE SOUTH CHINA SEA. LOU: WHEN YOU MAKE THE DISTINCTION WITH LAW ENFORCEMENT, I FIND THAT CURIOUS. AS A MAN WHO HAS WRITTEN ABOUT TRADE WITH CHINA AND UNDERSTANDS THE NATIONAL SECURITY IMPLICATIONS, I WOULD THINK YOU WOULD BE MORE VOCIFEROUS ON THIS.>>I DON’T MIND YOU PRESSING ON THIS, AND IF I WEREN’T PART OF THE ADMINISTRATION AND UNDER ORDERS, THIS IS A LAW ENFORCEMENT ISSUE, I WOULD BE FREE TO EXPRESS MY VIEWS. BUT THIS IS A LAW ENFORCEMENT ISSUE BEING DEALT WITH BY THE DEPARTMENT OF JUSTICE AND THE DISTRICT COURT. WILBUR ROSS AND STEVE MNUCHIN WOULD BE THE COMMENTERS ON THIS. THEY HAVE GONE UP TO CAPITOL HILL TO COMMENT ON THIS. LOU: THEY HAVE ALSO GONE TO BEIJING AND COME BACK WITH AN INTERESTING BUT CHECKERED RESULT. WE ARE SITTING HERE TALKING ABOUT 301s AND THE ADMINISTRATION’S DECISION TO IMPOSE PUNISHMENT EBB AS IT’S BEING ADJUDICATED BEFORE THE WORLD TRADE ORGANIZATION WHICH SOME WOULD CONSIDER TO BE A FURTHER AMBIGUITY GIVEN THIS ADMINISTRATION HAS NOT BEEN PARTICULARLY SUPPORTIVE OF THE IDEA OF TURNING OVER SOVEREIGNTY TO THE WTO.>>THERE IS ON ONE ISSUE THE 301 IS INVOLVED IN WITH THE WTO. WHAT CHINA DOES AS PART OF THEIR COERCION AND AGGRESSION, THEY FORCE AMERICAN COMPANIES TO LICENSE — IT’S LICENSING. TAKE QUALCOMM HAD A CHIP — LOU: I UNDERSTAND YOU WANT TO RUN OUT THE TIME. BY WANT YOU TO KNOW, YOU ALREADY SUCCEEDED AND WE APPRECIATE YOUR EFFORTS AND LOOK FORWARD TO

Leave a Reply