China in a 'sweet spot' for trade deal: Rep. Brady
Texas Congressman Kevin Brady on Wednesday said it’s ideal for China to reach a trade deal with the United States before the 2020 presidential election, or things could get ugly.
“I think the sweet spot for China is between now and the end of the year,” he told FOX Business’ Stuart Varney. “Next year will not get prettier for China in a presidential election year.”
Advancing a deal ahead the General Election would only benefit Trump politically.
“The way out for him is to make the deal about in October of 2020…when there is not time for it to fail before people vote,” Bill Reinsch, Center for Strategic and International Studies Scholl chairman and senior adviser, said. “In December everybody finds out it’s phony — fine — the election's over. What you don't want is everyone taking it apart now, or over the next eight months.”
Brady’s comments come on the heels of reports that China may be open to a partial trade deal.
Although Brady believes there could have been a partial agreement made earlier this year, he anticipates that President Trump and China’s Xi Jingping will reach a pact this year. He also believes that substantive changes “will reset this relationship.”
“All we're asking China do is not to change their economic model to change the model that depends on cheating and that is in intellectual property it’s technology theft, it is requiring a majority ownership in China by our businesses.”
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The Chinese delegation headed by Vice Premier Liu He heads to Washington on Thursday to meet with Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
White House chief economic adviser Larry Kudlow said Monday that he’s “open” to a deal as long as it’s the “right deal for America.”
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“We are open to whatever they may bring -- we will be open to it-- short term, long term—we will be open to it,” he said during an interview on Fox News. “The presidents got to defend the American economy. He said he’ll make a deal but it’s got to be the right deal for America.
FOX Business’ Jonathan Garber contributed to this report.