Trump is modernizing foreign investment rules: Larry Kudlow

President Trump has no plans to soften his stance on trade relations with China, Larry Kudlow the director of the National Economic Council told FOX Business on Wednesday.

Kudlow said the Foreign Investment Risk Review Modernization Act [FIRRMA] is a reform bill that aims to refresh and modernize the Committee on Foreign Investment in the U.S., it should not be viewed as a lighter version which had been reported by some news outlets.

“It’s going to be very comprehensive and very effective at protecting our technological family jewels,” Kudlow said to Stuart Varney on “Varney & Co.”

Meanwhile Kudlow said Trump still plans to move forward on the plan to impose tariffs on steel and aluminum, but is open to the prospect of more dialogue with the nation’s largest trading partners.

“He is a free trader,” said Kudlow. “He would like to see no tariffs, no non-tariff barriers, no subsidies—and we are open for that discussion.”

Even so, Kudlow isn’t expecting a radical shift anytime soon and noted that Trump is taking a “wait and see” approach to trade relations between the world’s two largest economies.

“The president proffered the possibility of $200 billion more in tariffs— it’s not implemented… but he made that as a warning because we have not had a satisfactory response from China,” he said.

Kudlow added that China has more to lose than the U.S.

“I believe that China is operating from a greater position of weakness than folks think,” he said. “We are operating from a greater position of economic strength.”

Kudlow is returning to work for the first time since June 11 after suffering from a heart attack.

“I feel great- great to be back,” he said. “To quote one of my heroes Mark Twain – rumors of my demise were greatly exaggerated.”