China's economy will not be able to withstand the "battering" President Donald Trump can deliver if the country does not negotiate a satisfactory deal on trade, former House Speaker Newt Gingrich said Monday.
"We don't need the sales, the Chinese do," Gingrich told Fox Business' "Mornings with Maria." "The basic argument Trump makes, that I agree with, is that we've had a very one-sided relationship."
China has participated in intellectual property theft and has the "enormous advantage" of having a closed market that blocks most U.S. high-tech companies from competing, Gingrich said.
"The Chinese are faced with a real crisis because we're telling them we are going to change the rules of the game," Gingrich said. "The core principle is simply China got to be this big and this wealth because all the rules of the game favored them and we tolerated behavior that is intolerable."
The market, meanwhile is "responding psychologically," Gingrich said, but if U.S. manufacturing is rebuilt under Trump and American-made products substitute for those made in China, "you may actually see a bigger American economy, not a smaller one."
Meanwhile, with the European market being "totally messed up with a system that doesn't work," the Chinese might not have many alternative markets, meaning the United States can withstand a fight more than China can.
"As Larry Kudlow said, we are engaged in a prosperity cycle, and [there is] every reason to believe it is going to continue and accelerate," Gingrich said. "We may be the only country in the world that can withstand this pressure because our domestic economy has been liberated. Entrepreneurs are going back to work."
Sandy Fitzgerald ✉
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.
© 2023 Newsmax. All rights reserved.