Kudlow Sees Long Road to Resolution in U.S.-China Trade Dispute

(Bloomberg) --

Top White House economic adviser Larry Kudlow said the trade war with China may take a long time to resolve, warning of a prolonged dispute with Beijing that he compared to the Cold War.

“The stakes are so high. We have to get it right. And if that takes a decade, so be it,” Kudlow told reporters at the White House on Friday. He also said that he didn’t want to make a prediction about the timeline for a deal.

Kudlow Sees Long Road to Resolution in U.S.-China Trade Dispute

A top-level Chinese delegation is expected to travel to Washington in coming weeks for meetings with senior Trump administration officials for talks over their months-long trade dispute.

Kudlow said the dispute is broad based, encompassing issues including trade, human rights and national security.

“It took decades, decades to get where we wanted to be with the old Soviet Union,” Kudlow said.

Asked by a reporter about the China trade dispute that by some measures had already lasted 18 months, he said that “in the great historical continuum, I don’t think 18 months for this thing is a very long time at all.”

The economic adviser cautioned that the trade war and Cold War differ in a number of ways and that the U.S. isn’t seeking an overthrow in China.

Kudlow added “there is progress of sorts,” including a positive phone call between Treasury Secretary Steven Mnuchin, U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He.

But he said there are “far reaching consequences” for the dispute that could last “50 years or a 100 years.”

©2019 Bloomberg L.P.

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