By Jon Dougherty
Former House Speaker Newt Gingrich is confident that the tariffs imposed by POTUS Donald Trump on China, including the latest round of 25 percent levies on $200 billion worth of goods, is much more than Beijing will eventually be able to weather.
During an appearance on “Sunday Morning Futures” withÂ Fox Business host Maria Bartiromo, Gingrich responded to a Twitter post by the president hinting that the Chinese government is “waiting” him out hoping that 2020 Democratic presidential contender Joe Biden wins the presidency next year and things can go back to ‘normal.’
“I think the Chinese are caught in a real box,” Gingrich said. “Because frankly, even if you think Trump’s not going to get reelected — and I personally think he’s gonna get reelected — but even if you thought he wasn’t, you’re talking about January 2021.”
Continuing, Gingrich said that China’s “economy is not going to take the battering that Trump can deliver if they refuse to negotiate” for a much more favorable trade arrangement as far as the U.S. is concerned.
“Remember, the biggest customer (the United States) has a huge advantage in negotiations because the other side needs the sale,” he added. “We don’t need the sale, the Chinese do.”
The former GOP House speaker from Georgia went onto note that he agrees with the president in that the U.S. and China have “had a very one-sided” arrangement regarding trade for decades.
Also, he said China has engaged in wholesale intellectual property theft, their country is essentially “a closed market” that won’t allow American technology companies to compete, even as the Communist government, “in many ways,” subsidizes certain industries.
Gingrich said that the president’s tactic of playing hardball with the Chinese to get a better trading arrangement could actually lead to an expansion of the U.S. economy as more jobs — especially technology manufacturing jobs — either relocate to the U.S. or originate here.
He added that it is important for Americans to be manufacturing sensitive items like computer chips in the United States, not in China so that Beijing cannot use them as tools of espionage after they are installed in American wireless and other technologies.
So, POTUS’ trade negotiations have wider ramifications than simply getting ‘a better deal’ with the Chinese; they also have national security implications.
The former speaker also agreed that now is the right time to have it out with China regarding trade issues because under POTUS Trump, the U.S. economy is extremely strong and vibrant and can withstand minor hits to the stock market, farming, and businesses.
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What’s more, as the economies of European nations including Great Britain continue to suffer tepid growth under socialist regimes, “the Chinese aren’t gonna have a lot of alternative markets, and ultimately, we can take a fight with China on economics a lot better than the Chinese can take a fight with us,” Gingrich said.
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