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Bob Hormats, undersecretary of Economic, Energy & Agricultural Affairs, weighs in on free trade and how the U.S. should handle its trade issues wi...
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You while democratic whip Steny Hoyer slamming China's alleged currency manipulation for costing.
More than a million US jobs house Democrats are vowing today to push on with a controversial legislation punishing China for its transgressions but critics say.
It may trigger all out trade war instead.
Well let's get the real deal -- Bob formats in a Fox Business exclusive he's former Goldman Sachs vice chair and current undersecretary of state for economic energy and agricultural affairs.
Is this going to turn Bob into an all out trade war with China they've already its Saber rattle the little bit saying.
If you push us to do this.
Meaning let their currency float more freely against does the US dollar than -- it'll be very bad for all of us what are you most worried about.
Well I think that at this point I'm not -- get into the specific legislation or what the Chinese are likely to do.
But I want to make one fundamental point here in that is.
That there are in the United States a growing set of concerns about.
China on the part of American business.
With respect to access to the Chinese market with respect intellectual property with respect to.
A level playing field and without commenting on where the legislation is going.
I do think that it is very important that the Chinese recognize.
That there are a lot of growing.
Concerns here on the part of companies that are doing business in China on all on hold a large number of those -- Saab hasn't hit a -- effort thus -- -- we had John Snow former Treasury Secretary going back to Paul O'Neill Treasury Secretary complaining to the Chinese come on the be more fair if you want to be a player in the World Trade Organization you have to be fair so what's new about now.
Well what's -- about now is that I think you're seeing a a growing set of concerns by a wider range of companies than ever before.
And the second thing is that the US government is taking a very firm position I'd say a firmer position.
Than.
In many cases in past years and addressing this we're going to be.
Disgusting and very firm terms issues such as intellectual property force transfers of intellectual property.
And the sort of a whole -- that the Chinese direct to companies that are doing business and then.
What happens -- -- for property is it goes to a Chinese partner.
As a precondition for the company investing there and then the Chinese partner in some cases and in many cases.
Use it to compete with the original provider of the technology.
That kind of thing and and the other is that Chinese state enterprises.
Play it and and state supported enterprises play a very strong role.
We're going to be pushing back on a lot of this and we call will.
A drive for a level playing field or competitive neutrality.
So what's what's changed is the magnitude of the problem and the amount of resources the Chinese have to devote.
Through strengthening their industries.
Are frequently at the expense of other countries and and distorting the playing field.
But that the fact is is that we all agree they're not playing on a level playing field there there we all agree that they're violating the rules.
And other than just talk what do we do to make them pay a price for violating those rules.
Well we do is we.
We go to the Chinese and we make a very strong case along lines that I have indicated as -- Sam not going to get in view that this -- -- legislation.
But I would say that there are a lot of ways we can address.
The Chinese problem.
Might happen to have those problems.
Ever -- sufficiently addressed with -- with anything other than words I mean it seems that the words of as you mentioned before previous administrations have had tough words that hasn't worked why would you are tough words -- -- has there has been.
-- there has been some progress on let me just identified a few areas on the issue of of innovation and did what they called indigenous innovation.
We actually have seen some progress at the federal level the national level.
The progress has not gotten down sufficiently.
To the various provinces but -- actually has been some progress.
In fact some of American Software companies I've talked to indicate that there has been some progress.
On intellectual property by no means enough so that doesn't there is not an environment which.
No progress has been made it just that the progress has been very slow.
And it's a big country it's not so easy to get.
Them to make these changes in a dramatic or quick way but work constantly.
Pressing in fact I'm going to China next week.
And I'm gonna have conversations with a number of senior officials there about this there are no guarantees that there's gonna be resolved overnight but we're certainly pressing very hard on this issue.
Bob quick question on Iran.
We we know about this plot that developed thankfully was uncovered before anybody was hurt.
What is the what is the role of the US -- -- with regard to to business interest of of Iran and trying to prevent them from doing this in the future.
Well I'm not gonna get -- the actual.
Issue but I do think as you probably know the United States has been.
In the lead in trying to tighten sanctions on Iran even before this.
Because of what they're doing in the nuclear area were going to continue to do this.
We would like to get more support from some countries.
For tighter sanctions but sanctions that would tighten up and those sanctions of actually had a very significant effect on the on the Iranian economy so.
We we do not.
Take this event lightly we certainly have not taken.
The the nuclear policies of strong lightly and we're pushing very hard for tighter and tighter economic sanctions and from all we've heard.
Those -- sanctions.
And tightening sanctions of having that effect on an adverse effect on the Iranian economy so that they have felt.
This.
Across the war.
-- you know maybe the Syrian see that they were target as well they might join us that would be nice good to see -- secretary we want as many countries to join us want to robustly as possible.
Thank you that's a good -- to get what I think thank you Bob good to see you thank you very much of the support Bob Hormats.
