Larry Kudlow says China 'has earned a tough response' from the U.S. and other nations

Larry Kudlow, the new director of the National Economic Council, issued harsh trade rhetoric against China in his first public remarks.
By Jeff Cox 

Kudlow: China has not played by the rules for a long time 

China can expect the U.S. to take a tough stance when it comes to international trade, Larry Kudlow, the newly appointed director of the National Economic Council, said Wednesday.
President Donald Trump named Kudlow to the position Wednesday to succeed Gary Cohn.
Kudlow's first task will be to negotiate the administration around a ticklish issue over tariffs on steel and aluminum that Trump announced last week. 

The moves appear to be part of a get-tough strategy that will include an especially hard line against China.
"I must say as somebody who doesn't like tariffs, I think China has earned a tough response not only from the United States," Kudlow said on CNBC's "Closing Bell," the network where he has been an anchor and contributor for a quarter-century.
In his first public interview since the president offered him the job Tuesday evening, Kudlow had harsh rhetoric for China.
"A thought that I have is the United States could lead a coalition of large trading partners and allies against China, or to let China know that they're breaking the rules left and right," he said. 

"That's the way I'd like to see. You call it a sort of a trade coalition of the willing," an apparent reference to President George W. Bush's "coalition of the willing" in the war against Iraq.
Kudlow added that he opposed what he saw as blanket tariffs originally, but softened his position when he saw that the White House would offer exemptions to Canada and Mexico as well as other countries willing to negotiation more U.S.-friendly trade positions.
"I don't like blanket tariffs and I don't think you should punish your friends to try and punish your enemies in international affairs," he said.
In addition to discussing trade, Kudlow also addressed his well-known penchant for a strong currency — "King Dollar," as he calls the greenback. 

It's part of his broader economic view of limited government and regulation and free enterprise.
"If you keep rates minimal, if you keep regulations and government spending minimal, if you keep the dollar sound and steady, you're going to have a terrific economy, if government has a modest approach and lets people do what they need to do and allows the freedom to do it, we will do great in this country," he said.

Trump advisor asks South Korea's Moon to help with China's many predatory practices

• South Korean President Moon Jae-in met with the Trump administration Thursday and Friday.
• China has pressured South Korea economically for allowing the U.S. to deploy a missile defense system in South Korea.

By Evelyn Cheng

National Economic Council Director Gary Cohn asked South Korean President Moon Jae-in on Friday for help in working with China.
"At some point we'd be interested to hear how you're dealing with the Chinese policies and how you could help us in dealing with Chinese policies," Cohn said in candid comments on camera because the press was invited in to view the start of the meeting.
Speaking at the request of President Donald Trump, the former Goldman Sachs president listed China's many predatory practices, such as:

• its infringement on intellectual property rights
• its demand that the U.S. transfer technology into China
• its requirements that U.S. firms form joint ventures with Chinese companies to operate in the country
• its restrictions on U.S. ownership of companies in China.

The detailed list follows the Trump administration's tough turn this week on China. 

The Treasury on Thursday issued sanctions against a Chinese shipping firm and two Chinese citizens tied to North Korea.

The U.S. also plans to sell Taiwan $1.42 billion in arms, Reuters reported Thursday, citing a State Department spokeswoman.
Then on Friday, Axios reported the White House is "hell-bent" on potentially imposing roughly 20 percent tariffs on imports from countries such as China.
South Korea is China's largest source of imports, and the smaller country's economy has come under significant pressure from Beijing for allowing the U.S. to deploy a missile defense system in South Korea. 

Although the system is intended to deflect North Korean missiles, China views it as a security threat and has boycotted and banned South Korean products.
After winning the election in early May, Moon temporarily suspended deployment of the missile defense system. 

Last week, Moon said he would ask Xi Jinping to lift China's retaliatory measures against South Korean businesses. 

He also said China should do more to curb North Korea's nuclear weapons development.
Trump has criticized U.S. trade policies with China and South Korea. 

In 2016, the U.S. had a $347 billion trade deficit with China for goods and a $27.7 billion deficit with South Korea, according to the U.S. Census Bureau.
"Much of our biggest problem on trade has to do with our economic relationship with China," Cohn said. 

"We have maintained a very large trade deficit with China and it continues to grow."
Also Friday, Trump pledged to work with Moon on dealing with the "menace known as North Korea."