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Steve Mnuchin
  Treasury Secretary Steven Mnuchin on China Trade Negotiations  CSPAN  December 3, 2018 9:23pm-9:34pm EST

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good morning, everybody. can you tell us more about the agreement on the china
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appearance? >> there is an immediate focus on reducing. as i mentioned there's a lot of work to be done over the next 90 days but some of the specific issues we talked about was a significant increase in industrial products including u.s. auto, so big opportunity. >> when you look at the foreign minister, the chinese foreign minister, he talked about a gradual increase in what's going to be negotiated over. there's a specific understanding that we are going to have determined the agreement the two presidents have into a real agreement over the 90 days. obviously some of the issues are going to need to be phased in. some may need more detailed work, but the idea is as i've said this is the first time there's a commitment from china
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that the agreement will include specific dates and specific targets a specific action items. it's not going to be just kicking the can down the road. [inaudible] in terms of how much it is going to be? >> the first purpose to reduce the surcharge but yes there have been specific discussions to where they will come down too but i'm not prepared to talk about the specifics at this moment. >> is there an agreement that will talk about forming an agreement, are there real terms that you can share with us? >> there were very, very specific items. we've been working on this the last year and a half and this is the first time we exchanged specifics on 142 different structural items the president
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laid out very clearly what they are prepared to do on these issues and they cover everything from purchasing goods which we've talked about before but more importantly protecting intellectual property and eliminating the ventures, protecting u.s. technology currency. this was a big part of the discussion. we want to make sure they don't depreciate the currency to harm u.s. workers and companies so this was a very detailed discussion and it was for over three hours. >> [inaudible] >> yes, there was. >> [inaudible] are you confident in the long-term china will make good on their word or do you suspect there could be more volatility come january? >> in a very short term, there
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will be changes in agriculture said that's probably the easiest thing you are going to see. very specific changes right aw away. i am taking the president at his word and commitment to president of trump, but they have to deliver on this so i think the president has been very clear that he expects to move forward with the agreement and he deserves the ability to do additional tariffs if not successful. >> these are major structural issues we are talking about. what happened at that dinner [inaudible] okay we are ready to talk with go forward, what happened? >> the strategy was very effective. it created a change in the willingness to address certain
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issues and i think president trump have developed a very relationship and the two largest economies they both understand the responsibilities we have but let me comment also a big part of the dinner was on the economic issues. the central issue was a very, very big deal. they said they are going to may change major rules and regulations because president trump asked him in the understanding that this is killing many americans. there's also very specific discussion on north korea and a commitment that they will work with us to make sure that there is a nuclear peninsula the secretary has been having a great job and came out of that meeting with a commitment from china and there's many other issues we have that we are going to work on th but we discussed cyber issues and there was a commitment across the board with very specific icons.
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>> they've agreed that it will call that opioid a controlled substance. china's language was much more watered down and t consider the restrictions declaratively china will crack down on the actions. >> i heard that commitment. there's work they need to do to put that through but yes, i heard a commitment from him that they will move forward on the things they need to do on that issue but again they have rules and regulations that need to be changed, but that was very important to president trump and that is going to save literally tens of thousands of u.s. lives. >> could you explain a little bit more? >> i think ai can guess even the r&d strengthened considerably over the last year. its beak into last six months
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and roughly was down to the point it was when the president was elected and we are concerned about that. i've had direct discussions over the last several months with the governor of the peoples bank of china and the discussions we had with the vice premier and discussions with president trump and there was a strong commitment to deal with this issue to make sure they don't continue to devalue the curren currency. [inaudible] when did that happen? >> i don't know whether this is going to take a few days or a week to implement, but there was a specific agreement and again this is going to be a phased in approach i think that you will begin to see progress on a lot of issues and i mentioned agricultural. >> [inaudible] >> i was with the president on
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air force one and i think some of you were with us he was pretty clear in that i think this is a great agreement. i think this is a major breakthrough on lots of issues not just off those more importantly issues on pharmaceuticals, intellectual services. i think there's going to be a lot of support in congress but the deal has been signed by all three parties and we expect that it will pass and i expect the president would terminate the agreement as he said. >> [inaudible] i can assure you we are going to work with the intelligence community. dhs has certain primary responsibilities and i have responsibilities but i can tell you this is a topic that we've
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discussed at the national security council and we have the tools to know what is going on and not going on. they will meet once again. i know there was an invitation and he extended a visit to come back to china but there was no specifics on the planning but my expectation is they will continue to have phone conversations. this was the third major meeting between both of them and my expectation is that all of these issues they will be meeting in the near future. i'm going to take one more
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question. >> the president talked about how the u.s. is making billions of dollars because of the tariffs. is that a misunderstanding of how that works, it's the american consumer who pays more not the government that makes more. >> the treasury does take them into the president is absolutely correct in that we are collecting tariffs. it's like real estate commission sometimes they are paid by the buyer and sometimes by the seller. some of these are absorbed by the foreign producers and in certain cases they are passed on to u.s. companies but of course the president understands these issues. >> what is the timeline? >> more about the u.s. china relationship now. policy experts consider the announcement over the weekend by presen