China says United States blaming Xi for blocking trade deal bogus and shocking

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Larry Kudlow, economic adviser to President Donald Trump, defended his boss's approach to trade and hinted that more tax changes could be coming during an appearance at a CNBC investor conference Wednesday.

FILE PHOTO: Director of the National Economic Council Larry Kudlow takes questions from reporters at the White House in Washington, U.S., June 27, 2018.

President Trump then proposed 10-percent tariffs on a list of $200 billion in Chinese products, which China responded to by filing a challenge with the World Trade Organization.

China could end US tariffs "this afternoon by providing a more satisfactory approach" and taking steps that other countries are also calling for, he said.

"We have confidence and enough capabilities to safeguard our legitimate interests, and make joint efforts with other countries to maintain global rules and the multilateral trading system", Hua said.

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Kudlow said China could resolve the dispute "this afternoon" by simply cutting tariffs, eliminating non-tariff barriers, and stopping the practice of stealing U.S. technology through forced transfers. Xi's top economic adviser, Liu He, appears willing to move forward on a deal, said Kudlow. "So some of those ideas are circulating and I think will come to fruition". Europe, Canada, even our sources in China say that even the Chinese government knows that they are doing is wrong.

Kudlow concluded by attacking China's president Xi Jinping.

Kudlow's calls for steady or increasing growth in the coming cycle comes up against broad-market expectations of a mild downturn in 2019 and beyond, but Kudlow's job description makes it hard for President Trump's top economic mind to cast doubt on the impacts of the POTUS' economic policies.

"You have to go and lay your entire blueprint on the table, including the technology, and they will have their experts open it right up", he said. "We are waiting for him (Xi)".

So far Trump has been vague about what exactly China needs to offer in the form of a trade deal in order for the barriers to come down, but Kudlow offered a laundry list of items that the U.S. would need to see in order to eliminate the tariffs. The ball is in his court. "Allow the American or British or whomever, German, full ownership of the companies operating in China".