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National Economic Council Director Larry Kudlow said Thursday that trade talks between the U.S. and China are going great, noting the two countries are making "fantastic" progress in meetings last week.
"Last week was fantastic," Kudlow told CNBC's "Squawk on the Street. " "We're making great headway on nontariff barriers and tariffs regarding various commodities such as soybeans and energy and beef. We have mechanisms with regard to enforcement, which is — I think — unparalleled."
"The progress has been terrific," Kudlow added. But "we have to hear from the Chinese side. We have to hear from President Xi Jinping, of course. I think we're headed for a remarkable, historic deal."
U.S. equities briefly pared some of their losses following Kudlow's remarks.
Kudlow also said China has expressed willingness to make key structural changes to prevent intellectual property theft, a highly contested issue in these negotiations.
Kudlow's comments follow testimony from Robert Lighthizer, the U.S. trade representative. Lighthizer told members of the House Ways and Means Committee that China needed to do more than just buy more U.S. goods for the two countries to strike a permanent trade deal.
But Lighthizer said after the testimony, according to The Wall Street Journal, that formal steps would be taken to abandon plans of raising tariffs on Chinese goods. This is a clear signal that a trade deal could come in the near future.
"Lighthizer has worked miracles on this Chinese deal," Kudlow said. "We've never come this far on China trade."