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Phone calls with light heiser and steve mnuchin and several other things happens that implies that there is kind of a hawk group in china that you did not pay much attention to these trade talks the first year. they then began to look into it and perhaps they realized how much change was required. almost like constitutional change in china. if they made this agreement you are alluding to. if they made it legally -- up having some chinese leaders thought this was just a statement of good intentions. we will do our best. but actually, the agreements requires them to change their laws and they ca...

But we are making more progress now and more specific issues than ever before. now let me add quickly trust but verify is very important. ambassador light heiser will be looking very carefully. hete will evaluate and there are timetable mechanisms that nothing in this is done until it is verified to our satisfaction. thatat is a caveat however having said that the chinese own statements are very positive. >> except the president tweeted 40 percent tariff on auto imports for those that were not committed to that and there was a big bump on saturday night president xi and president trump having ...

Well. that is what we are seeing, and that is the mounting trade war. >> and one of the problems is that the chinese are having difficu difficulties with us, because they don't know who to negotiate with. is it steve mnuchin who has a more balanced a approach to the treasury or robert light heiser who is the more steve bannon-esque negotiator or wilbur ross? >> well, the chinese have said that they don't believe that the administration wants to deal. they have said they want to reduce the trade deficit by roughly $100 billion and the administration came back with an answer and no, we have chan...

These and in the second half of the year these factories start producing output. so the idea that the trend may not continue because it's a sugar high is inconsistent with the form it's taking. as for nafta and the light heiser and the whole team have been in negotiations with canada, we continue to be hopeful that we sign on to the 21st century deal with mexico. so i will come over here and i will go back to you. >> i have a question about incremented qualities. have you seen them shrink and are you concerned about people that are poor, not just people that are in the county but people living...