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White House advisor Peter Navarro says 'China is trying to steal our future' — Comments knock stocks

Key Points
  • White House trade advisor Peter Navarro tells Japanese newspaper Nikkei that an agreement in 90 days will be “difficult” and Beijing needs to be “prepared for a full overhaul of its trade and industrial practices."
  • "China is basically trying to steal the future of Japan, the U.S. and Europe, by going after our technology," Navarro, a well-known China hawk, says.
  • President Trump and Chinese President Xi Jinping struck a 90-day trade truce at the G20 meeting in Argentina but have yet to reach a permanent deal.
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White House's Peter Navarro weighs in on China and Fed

President Trump's hard-line advisor Peter Navarro added to doubts of a U.S.-China trade agreement happening in the next three months.

Navarro, a well-known trade hawk, told Japanese newspaper Nikkei that it would be "difficult" for the two countries to arrive at a long-term agreement unless "Beijing was prepared for a full overhaul of its trade and industrial practices."

"China is basically trying to steal the future of Japan, the U.S. and Europe, by going after our technology," Navarro said in an interview with Nikkei this week.

The publication of his comments helped send the Dow Jones Industrial Average to its lows on Friday. The Dow finished the week lower by 6.8 percent, for its worst week in 10 years.

President Trump and Chinese President Xi Jinping met over dinner at the G-20 summit in Argentina, which was a "great success," according to the president. China and the U.S. struck a 90-day trade truce at that meeting, according to the White House. In a series of tweets after the meeting, the president expressed hope about reaching a "fair deal," but stressed that he is "a Tariff Man" if talks fall through.

The arrest in Canada of Meng Wanzhou, the chief financial officer of Chinese tech giant Huawei, escalated tensions after the G20 meeting. China strongly opposed the arrest of Meng, who currently faces extradition to the U.S. Her arrest is reportedly related to violations of U.S. sanctions.

Navarro said China needs to address all of the White House's concerns without "half-measures." He called the Made in China 2025 initiative a "label for a Chinese strategy to achieve dominance in the industries of the future."

Navarro went through a litany of China's economic aggression — from "consolidating of state-owned enterprises into national champions," to "debt-trap financing to developing countries," and "dumping below cost into foreign markets." According to the Japanese newspaper, Navarro said "virtually everything on here is against the rules of the World Trade Organization."

— Read the entire Nikkei report here.

— CNBC's Kevin Breuninger contributed to this report.