President Donald Trump’s top economic adviser said the U.S. should allow companies to deduct the entire cost of capital spending, including relocating from China, as the administration looks for ways to jump-start an economy hobbled by the coronavirus pandemic.

“Plant, equipment, intellectual property, structures, renovations -- in other words, if we had 100% immediate expensing, we should literally pay the moving costs of American companies from China back to the U.S.,” Larry Kudlow said in an interview on Fox Business Network on Thursday.

Kudlow’s proposal came in response to a question about how the U.S. can ween itself off its reliance on manufacturing in China.

“I think 100% expensing would be a very good thing, and by the way, it would be a very good thing for American companies here at home,” he said.

The White House is weighing how to safely urge Americans to reopen the U.S. economy after another 6.61 million people applied for unemployment benefits last week. That brought the three-week total to about 16.8 million during the economic shutdown to fight the outbreak.

The administration may create a new working group to focus on reviving the U.S. economy after the pandemic eases. Kudlow would likely be part of the panel, but he declined to elaborate on the plans.

“Presently there’s no formal structure, the president’s seeking advice from everybody, inside and outside the government,” he said.

Kudlow cited the trade deal between the U.S. and China and said Trump has a good relationship with President Xi Jinping.

“I don’t want to pick on China right now, it’s not high on my list,” Kudlow said. “We have engaged with them, we have a good trade deal the president negotiated with them, but there are issues. We’d like more American companies to come back home.”

In a wide-ranging interview:

• Kudlow said the Trump administration wants to open the economy soon so America can start on the road to recovery after so many businesses shuttered due to the coronavirus pandemic. "Let us hope we can reopen this economy in the next four to eight weeks," Kudlow said during the "America Works Together" virtual town hall on Thursday. Kudlow said the administration is working on a plan to do that on a "rolling basis."
• Kudlow said that 500,000 loans had been approved since the Paycheck Protection Program opened last Friday, accounting for $128 billion of the $350 billion fund. Nearly 4,000 bank lenders have participated. “This thing is wide, sweeping,” he said. “It’s a gigantic program,” he said. “Everybody who wants a loan to stay in business, to keep their payroll intact, to cover expenses, everybody who wants one is going to be able to get one,” Kudlow said.