US, China strike MAJOR trade framework as trade deficit cut in HALF

R. TARIFFS. THE TWO WILL MEET AGAIN IN. NOVEMBER AS QUESTIONS ABOUT. ACCESS TO CHINA'S RARE EARTH. MINERALS REMAIN. >> I THINK WE'VE MADE TREMENDOUS. STRIDES. WE'VE MADE GREAT STRIDES, VERY. POSITIVE FOR BOTH COUNTRIES. >> TRANSLATOR: THE PRESIDENT AND. I WILL LIKE TWO PEOPLE THAT'S. CHARTING THE COURSE FOR THE. GREAT SHIP OF CHINA-RELATIONS. JACQUI: LET'S BRING IN U.S. TRADE REPRESENTATIVE JAMIESON. GREER. AMBASSADOR, IT'S GREAT TO HAVE. YOU WITH US, THANK YOU SO MUCH.

FOR BEING HERE. >> GREAT TO BE WITH YOU. THANKS FOR HAVING ME ON. JACQUI: OF COURSE. LET'S GET INTO THE DETAILS HERE. THE WHITE HOUSE SAYS THAT THE. U.S. AND CHINA AGREED TO. RECOMMEND MORE FAVORABLE TERMS. FOR THESE $30 BILLION IN GOODS. ON BOTH SIDES. THE FACT SHEET SAYS IT INCLUDES. FOR EXPORTS FROM THE U.S. AGRICULTURE GOODS, FISH, SEAFOOD, LOGS, COSMETIC, MEDICAL. TWICES, AND FOR THE IMPORTS, SMALL APPLIANCES, TOYS, HOLIDAY. DECORATIONS, CHILDREN'S CAR.

SEATS. CAN YOU TELL US WHY THESE. PRODUCTS SPECIFICALLY WERE. DECIDED AND WHAT REMAINS. UNRESOLVED AT THIS POINT? >> CERTAINLY. HAPPY TO DO THAT. REMEMBER, PRESIDENT TRUMP OVER. HIS TWO TERMS HAS IMPOSED THE. HIGHEST TARIFFS ON CHINA OF ANY. COUNTRY IN THE WORLD. WE HAD A TRADE DEFICIT OF $300. BILLION COMING INTO THIS. ADMINISTRATION WITH CHINA, IT'S. GONE DOWN BY OVER 40%, WE'RE. LOOKING AT IT AROUND $140. BILLION. WE'RE ALWAYS GOING TO TRADE WITH. CHINA. SO WE GOT TOGETHER TO FIGURE OUT.

ARE THERE A BUNCH OFOF. NON-SENSITIVE GOODS, THINGS WE. CAN TRADE BETWEEN US? THIS REPRESENTS, FRANKLY, A. SMALL FRACTION OF TRADE BETWEEN. OUR TWO COUNTRIES, BUT IT'S. THINGS LIKE CAR SEATS, THINGS. LIKE THAT, HOME DECOR, THINGS. THAT ARE NOT SENSITIVE. AND ON THE OTHER END, CHINA WILE. TARIFFS ON ABOUT 30% OF THE. GOODS WE SEND TO THEM, AND. THAT'S OUR AG GOODS, COSMETICS, MEDICAL DEVICES. THIS IS A WAY TO PROVIDE. STABILITY IN THE RELATIONSHIP. WHILE ALLOWING US TO MAINTAIN.

OUR HIGH TARIFFS ON EVERYTHING. ELSE THEY SEND OUT WHETHER IT'S. 25, 50, IN SOME CASES 100%. JACQUI: SO I UNDERSTAND THE. WHITE HOUSE IS GOING TO HAVE. SOME MORE DETAILS COMING OUT. TOMORROW. WHAT CAN YOU TELL US ABOUT THAT. ANNOUNCEMENT AND ALSO WHAT. REMAINS UNRESOLVED THAT YOU'RE. STILL TRYING TO WORK OUT? >> CERTAINLY. ON THE TRADE SIDE, WE'LL. ACTUALLY RELEASE SOME. DOCUMENTATION ON THE MECHANISMS. FOR WHAT I JUST US DISCUSSED. WE CALL IT THE BOARD OF TRADE. AND THESE ARE NOT IMMEDIATE. TARIFF CUTS OR THINGS LIKE THIS. THESE ARE GOODS WHERE IF THERE.

ARE TRADE MEASURES IN THE FUTURE. OR THINGS WE'RE LOOKING AT, WE. JUST LEAVE THESE OFF TO THE. SIDE. IF WE'RE GOING TO HAVE TRADE. DISPUTES OR TARIFFS ON THE VAST. MAJORITY OF WHAT WE'RE DOING, WE. WANT TO HAVE SOME SET OF THAT. WE'LL HAVE LISTS OF THE TYPES OF. THINGS WE'RE TALKING ABOUT. TOMORROW. WHAT'S LEFT UNRESOLVED, YOU. KNOW, RARE EARTHS. WE CONTINUE TO GET RARE EARTHS. FROM CHINA, WE CONTINUE TO HAVE. WHAT WE NEED, THAT BEING SAID, WE'D LIKE THEM IN GREATER. VOLUMES AND IN A MORE TIMELY. WAY. PRESIDENT TRUMP RAISED IT WITH.

PRESIDENT XI QUITE DIRECTLY, AND. THAT'S JUST ONE OF MANY ITEMS. THAT WE'RE STILL LOOKING AT. JACQUI: WHAT WAS THAT RESPONSE. FROM PRESIDENT XI WHEN PRESIDENT. TRUMP RAISED THE ISSUE OF RARE. EARTHS? WHAT DID HE SAY? >> WELL, PRESIDENT XI AND. PRESIDENT TRUMP HAVE A GOOD. RELATIONSHIP. THEY HAVE A GOD WORKING. RELATIONSHIP WHICH IS A. DESIRABLE THING GIVEN THE. MAGNITUDE OF OUR COUNTRIES. PRESIDENT XI AND PRESIDENT. TRUMP, THEY WANT OUR COUNTRIES. TO GET ALONG IN THE BEST WAY WE. CAN. WE'LL COMPETE IN SOME AREAS. WHAT YOU SEE IN THE CHINESE.

SYSTEM IS YOU HAVE PEOPLE AT. LOWER LEVELS, YOU HAVE PEOPLE. TAKING THEIR TIME. YOU HAVE A CHINESE BUREAUCRACY. AND, FRANKLY, YOU HAVE THE. CHINESE WHO WANT TO TRY TO. CONTROL AND USE IT AS LEVERAGE. SO PRESIDENT XI IS ALWAYS. ACCOMMODATING OF THE PRESIDEDENT. AND WANTS TO BE HELPFUL. AT THE SAME TIME, HE AND HIS. SYSTEM -- THERE'S A NATURAL. TENSION IN THE COMPETITION THAT. THEY WANT TO HAVE AND THE DESIRE. FOR A STABLE RELATIONSHIP. JACQUI: OKAY. SO THE TWO SIDES IS PUT THIS. TRADE TRUCE IN PLACE FOR ANOTHER.

TWO MONTHS. WHAT WOULD YOU CALL A SUCCESS. AFTER THAT PERIOD OF TIME? WHAT IS, LIKE, THE NUMBER ONE. THING THAT THE U.S. NEEDS? >> REMEMBER, WHAT WE'RE TRYING. TO DO, OUR ENTIRE TRADE POLICY, OUR ECONOMIC POLICY, IT'S. AMERICA FIRST. IT'S NOT ANTI-CHINA OR ANTI ANY. COUNTRY, IT'S PRO-AMERICA. WE'RE TRYING TO RESHORE. WE'RE SEEING THAT HAPPEN. SO WE MEASURE SUCCESS DO WE HAVE. MORE MANUFACTURING JOBS? YES, WE DO. ARE MANUFACTURING WAGES HIGHER?

YES. THEY'VE INCREASED BY OVER $3500. THAT'S HOW WE'RE MEASURING IT. WITH RESPECT TO CHINA, WE LOOK. AT OUR TRADE DEFICIT IN GOODS, AGAIN, IT'S GOWN DOWN -- GONE. DOWN BY OVER 40%. WE HAVE A 2-MONTH ROLLOVER. PERIOD. I VIEW IT AS A COMPLIANCE PERIOD. TO ASSESS WHETHER OR NOT CHINA. IS ACTUALLY DOING WHAT THEY SAID. THEY WOULD DO IN SENDING US RARE. EARTHS. SO OUR VIEW WITH CHINA, WE WANT. STABILITY WHILE WE MAINTAIN OUR. ECONOMIC POLICY THAT'S DRIVING. GROWTH, DRIVING JOBS, DRIVING. WAGES HIGHER.

JACQUI: OKAY. THE SECRETARY OF TREASURY SAID. THAT CHINA'S DOING PRETTY WELL. ON SOME THINGS, BUT THEY'RE. BEHIND BY $17 BILLION ON OTHER. GOODS. LISTEN TO THIS. >> CHINESE HAVE BEEN VERY GOOD. THUS FAR ABOUT MEETING THEIR. OBLIGATIONS THIS YEAR. THEY'VE AGREED TO BUY $25. MILLION -- EXCUSE ME, 25 MILLION. TONS OF SOYBEANS, AND THEY'VE. BEEN VERY FULSOME IN THOSE. THEY HAVE ABOUT 17 BILLION OF. OTHER ARK G COMMITMENTS -- AG.

COMMITMENTS THAT WE THINK. THEY'RE A LITTLE BEHIND SCHEDULE. ON, AND WE ARE ENCOURAGING THEM. TO PICK THOSE UP. JACQUI: WE'VE OBVIOUSLY HEARD. THIS BEFORE FROM BEIJING, THAT. THEY'RE GOING TO DO WHAT THEY. SAY. WHAT ARE THE CONSEQUENCES FROM. THE U.S. SIDE IF THEY DON'T DO. THAT? WHEN DO YOU START PULLING THOSE. LEVERS? >> WELL, THIS IS PART OF THE. REASON WHY IT'S A TWO MONTH ROLE. AND NOT A SIX MONTH ROLE. THIS REALLY IS THE TIME WHEN. AMERICAN FARMERS ARE HARVESTING. AND SELLING.

I THEY DO IT THROUGHOUT THE. YEAR, BUT THIS IS A REALLY. INTENSE TIME FOR THAT. SO WE EXPECT TO SEE THE CHINESE. HAVE AN UPTICK IN THIS. THE PRESIDENT, AGAIN, WAS QUITE. DIRECT ON THIS. THEY'RE PAST THE HALFWAY PARK --. MARK ON SOYBEANS. OTHER AG SALES THEY'RE AT ABOUT. $5 BILLION AT A PRORATED $17. BILLION. SO THEY HAVE SOME PROGRESS, AND. WE EXPECT THE NEXT TWO MONTHS TO. BE HEALTHY FOR U.S. FARMERS AS. CHINESE PICK UP THE PACE. JACQUI: "THE WALL STREET. JOURNAL" EDITORIAL BOARD SAYS.

THE TARIFFS HAVE RAISED THE. COSTS FOR AMERICAN FARMERS. THROUGH BOTH THEIR ACCESS TO. FOREIGN MARKETS AND RETALIATION. THEY SAY, QUOTE, MR. TRUMP'S. BORDER TAX HAS FILTERED THROUGH. SUPPLY CHAINS TO KILL ALL. PARTS -- KINDS OF PARTS AND. EQUIPMENT MAKING IT HARDER WHEN. THEY BUY TRACTORS, COMBINES, HARVESTERS AND PLANTERS. CAN YOU SAY THAT AMERICAN. FARMERS ARE ARE BETTER OFF TODAY. THAN BEFORE THE TARIFFS? >> I CAN BECAUSE THEY'RE -- WHEN. WE CAME INTO OFFICE, WHEN. PRESIDENT TRUMP CAME INTO.

OFFICE, THE U.S. TRADE DEFICIT. IN AGRICULTURAL GOODS WAS. ENORMOUS, AND HE HAS CUT THAT IN. HALF IN THE PAST YEAR AND A. HALF. HOW HAS HE DONE THAT? HE HAS OPENED UP NEW MARKETS. WE HAVE COUNTRIES LIKE CAMBODIA. THAT HAVE LOWERED ALL OF THEIR. TARIFFS. WE HAVE COUNTRY COUNTRIES LIKE. BANGLADESH WHICH HAS 200 MILLION. PEOPLE WHO ARE BUYING AMERICAN. WHEAT AND CORN FOR THE FIRST. TIME. DOUBLE-DIGIT GROWTH IN EXPORTS. OF DAIRY, SO WE'RE OPENING NEW. MARKETS. OTHER COUNTRIES, GENERALLY. SPEAKING, HAVE NOT RETALIATED.

AGAINST THE TARIFFS. WE HAVE CHINA, THAT'S KIND OF. EXPECTED. THEY RETALIATED AGAINST. AGRICULTURAL GOODS UNDER BIDEN. AND IN TRUMP'S FIRST TERM. IT'S PART OF THAT THEY -- WHAT. THEY DO. BUT THE PRESIDENT HAS USED HIS. TARIFFS, ON THE ONE HAND, TO TO. PROTECT THE AMERICAN SUPPLY. CHAIN AND ON THE ORE DEAL, WE'VE. MADE DEALS WITH ECUADOR, ARGENTINE THAT, AND THEY'RE --. ARGENTINA, AND THEY'RE LOWERING. TARIFFS ON SPECIALTY CROPS. WE DON'T HAVE TARIFFS ON ENERGY,

SO IS A LOT OF THESE THINGS THAT. GO TO THE AGRICULTURAL SUPPLY. CHAIN, THESE ARE THINGS THAT. HAVE ACCELERATED FARMERS'. EXPORTS. JACQUI: OKAY. APPRECIATE ALL OF THAT FROM YOU. THIS MORNING, AMBASSADOR. JAMIESON GREER, U.S. TRADE. REPRESENTATIVE. ALWAYS GREAT TO TALK WITH YOU.