President Trump should intensify his trade battle with China by barring Chinese businesses from US capital markets and technology, his former White House chief strategist, Steve Bannon, said.
‘He has to go all the way; it’s not a trade war, it’s an economic war they’ve been running against the West,’ Mr. Bannon said in an interview Friday in the central Asian state of Kazakhstan. ‘You cut off the access to the capital markets and you cut off the access to technology, they fold immediately.’
Amid escalating confrontation between the world’s 2 largest economies, President Trump raised tariffs on $250-B of Chinese exports this month and blacklisted Huawei Technologies Co. as well as scores of its affiliates.
Talks on a trade deal have stalled and President Trump warned Monday that tariffs on Chinese goods ‘could go up very, very substantially.’
China accused Washington of seeking an ‘unequal trade deal’ and said tariffs would have a limited impact on its economy while also hurting the US.
‘I do not think Trump backs off for a second’ because the conflict ‘is about fundamentally changing the Chinese economy so they can work with the free market economies of the West,’ said Mr. Bannon. ‘You have two systems right now that are incompatible.’
Mr. Bannon was the architect of many of President Trump’s populist ‘America First’ policies before he left in August 2017 after the arrival of then Chief of Staff John Kelly.
President Trump has ‘Zero chance’ of improving US relations with Russia amid increasingly ‘vicious’ political infighting in Washington over Special Counsel Robert Mueller’s investigation, Mr. Bannon said. ‘When China is the only thing that matters, Russia is a sideshow,’ he said.