White House National Economic Council Director Larry Kudlow appears on FOX Business for his first interview since the signing of the U.S.-China trade deal. Mr. Kudlow is optimistic but also shares notes of caution for the compliance and enforcement aspects.
In the background of the delegation it should be noted Chinese Chairman Xi Jinping sent a hard-line handler, Commerce Minister Zhong Shan, to accompany the more moderate Vice-Premier Liu He. Zhong Shan was noted at the center of the signing ceremony and directly opposite Robert Lighthizer at the luncheon.
The two Beijing representatives highlight the ongoing Dragon -vs- Panda dynamic within China.
Internal to Chinese politics…. If the reformers are successful (Liu He) the compliance and enforcement mechanisms will succeed and ‘phase-one’ will lead to future negotiations. However, if the hardliners block reform (Zhong Shan), then the compliance and enforcement mechanisms will fail and ‘phase-one’ becomes a dead end.