Washington: A top US official on Wednesday described China as a "problem" and said Beijing has not responded to America's queries on trade and intellectual property.
"China is a problem. They have not responded to our asks. It's not just the trade deficit per say. It's the theft of IP (intellectual property), it's the force transfer of technology," White House Chief Economic Advisor Larry Kudlow told Fox Business News.
Kudlow said that the Chinese just put a new rule in China about cyber security where the police are allowed to hack in to American and other foreign companies.
"That's outrageous," he said.
Responding to a question, Kudlow said that China should rethink its strategy if their strategy is to wait until after the mid-term elections in the hopes that the Republican party loses the House and they have more leverage.
"If that is their thinking, they better rethink their thinking because, look, the House may change hands or not. I think it's going to be very close. The president is not going to change his view, point number one. China has got to come back into the world of lawful trading practices. They are not, and everybody around the world know that," Kudlow said.
"The whole world knows that China is wrong," he said.
Irrespective of the election results, he said, President Donald Trump is not going to change his view.
Kudlow said this is an era where the US is defending the economic rights for its workers, manufacturers and its overall economy.
"China will miscalculate if they think there's going to be some change in November regardless of who wins," he said.
"The president will probably meet with President Xi Jinping at the G20 in Argentina. We will see whether that person-to-person diplomacy yields any benefits. I think it's always better to talk than not to talk," he said, adding that the talks with the Chinese have been unsatisfactory so far.
"I want to see a trade deal. I have become very cynical because we've given our ask and China does respond. I worry that they're moving in the wrong direction with a more closed economy and a less liberal economy. And the great reforms of Deng Xiaoping have basically been abandoned. That's a trouble spot," Kudlow said.