After the signing ceremony to celebrate a historic U.S-China ‘phase-one’ trade agreement, President Trump and the U.S. trade delegation hosted Vice-Premier Liu He and the Chinese delegation for a luncheon. [Video and Transcript Below]

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[Transcript] – PRESIDENT TRUMP: I thought that we would do it the way other; that the more I thought about this, the better it is. It’s — you can get your arms around it better the way we’ve got it. I like it better the way we’ve done it.

I just want to say this is a great day for both China and the United States. This is an agreement that people have been talking about for 40 years and never were able to get even a piece of paper signed. And we never had an agreement. And this is going to be a great agreement for both countries. It’s far greater than $200 billion, and it’ll grow every year. It also unifies the countries.

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White House National Economic Council Director Larry Kudlow appears on FOX Business for his first interview since the signing of the U.S.-China trade deal.  Mr. Kudlow is optimistic but also shares notes of caution for the compliance and enforcement aspects.

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In the background of the delegation it should be noted Chinese Chairman Xi Jinping sent a hard-line handler, Commerce Minister Zhong Shan, to accompany the more moderate Vice-Premier Liu He.  Zhong Shan was noted at the center of the signing ceremony and directly opposite Robert Lighthizer at the luncheon.
The two Beijing representatives highlight the ongoing Dragon -vs- Panda dynamic within China.
Internal to Chinese politics…. If the reformers are successful (Liu He) the compliance and enforcement mechanisms will succeed and ‘phase-one’ will lead to future negotiations.  However, if the hardliners block reform (Zhong Shan), then the compliance and enforcement mechanisms will fail and ‘phase-one’ becomes a dead end.
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Earlier today President Trump, together with his trade delegation and the delegation from China represented by Vice-Premier Liu He, signed a new, fully-enforceable Phase One Trade Agreement. This is the first ever trade agreement any nation has attempted to change the dynamic of how a free-market system (USA) can engage with the Communist system within China. [Video Below – Transcript ADDED]
While ‘phase-one‘ was structurally created to set the foundation, and test the principles of enforcement, this historic trade agreement will frame the text that all other free-market nations will follow in their own efforts to come to a substantive agreement with Beijing.
This is a really big deal on a worldwide scale of international commerce.  Structurally the biggest changes inside China relate to Intellectual Property protections, U.S. ownership of assets, and changes within the Chinese legal system to stop Forced Technology Transfer.
During the ceremonial remarks Vice-Premier Liu read a statement from Chinese Chairman Xi Jinping to commemorate this historic trade agreement.

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[Transcript]  PRESIDENT TRUMP: Thank you very much. Please. We greatly appreciate your joining us at this White House event. This is a very important and remarkable occasion.

Today, we take a momentous step — one that has never been taken before with China — toward a future of fair and reciprocal trade, as we sign phase one of the historic trade deal between the United States and China. Together, we are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers, and families.

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U.S. Treasury Secretary Steven Mnuchin appears on FOX Business to discuss the U.S-China ‘phase-one’ trade agreement, the benefits, enforcement mechanisms and retention of tariffs and particular sanctions until compliance can be reviewed.
Phase-1 establishes the baselines; resets the ability of U.S. companies to enter China; establishes rules for market entry; and sets the parameters for enforcement.  Any future phase is contingent upon evaluation of phase-one enforcement mechanisms.

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U.S. Trade Representative Robert Lighthizer is a smart, serious and deliberate professional on a very specific and important mission for the United States.  In my opinion Lighthizer is the most under-appreciated member of an exceptionally good economic team. Everything about Lighthizer’s approach is based on enforcement.
Ambassador Lighthizer has been consistent over multiple years, on his intention to create enforceable trade reform between the U.S. and China, or, if needed, decouple the two economies if China fails to accept the necessary structural reforms.
Tonight, as the Chinese delegation arrives, Lighthizer discusses the U.S-China ‘phase-one’ agreement with Lou Dobbs. WATCH:

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As you review this story keep in the back of your mind that U.S. DC Attorney Jessie Liu has been recently moved to head the Financial Crimes Division of the Treasury Department.
CTH noted last year when John Fry, an intelligence analyst with the IRS’s law enforcement arm, was arrested that something more was happening in the background of his case and the DOJ case against Natalie Sours-Edwards.   Today Ms. Sours-Edwards pleads guilty to downloading & distributing the financial records of people connected to the Trump orbit.
You might remember back in May 2018 when sketchy porn lawyer Michael Avenetti was releasing U.S. Treasury notifications on Michael Cohen received from an unknown source within the Treasury Department [See Here].  You might also remember when New Yorker’s Ronan Farrow wrote a sympathetic article after talking to the leaking treasury official [See Here].  As a result the Treasury Inspector General began an investigation.

(VIA DOJ) Natalie Mayflower Sours Edwards Illegally Repeatedly Transmitted SARs and Other Sensitive Government Information To A Reporter Resulting In Approximately 12 News Articles Over 1-Year Period.
Ms. Sours-Edwards, a former senior adviser at the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”), pled guilty today to conspiring to unlawfully disclose Suspicious Activity Reports (“SARs”).
Beginning in approximately October 2017, and lasting until her arrest in October 2018, EDWARDS agreed to and did unlawfully disclose numerous SARs to a reporter (“Reporter-1”), the substance of which were published over the course of approximately 12 articles by a news organization for which Reporter-1 worked (“News Organization-1”).

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Secretary of Treasury Steven Mnuchin appears with Maria Bartiromo to discuss the latest round of sanctions against Iran.  Secretary Mnuchin notes the economic engagement by China with Iran may open up Beijing to countermeasures for violating sanctions.
Additionally, Secretary Mnuchin outlines some aspects of the U.S-China ‘phase-one’ trade agreement and affirms the key point of enforcement mechanisms built into the agreement by U.S.T.R. Robert Lighthizer.  The official signing is this coming Wednesday.

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The BLS released the December jobs report earlier today showing a stable 145,000 new job gains last month, and the unemployment rate remaining a very low 3.5%.
During an interview discussing the health of the U.S. economy in 2020 with National Economic Council Director Larry Kudlow, the DOW Jones industrial average crossed 29,000 for the first time in history.

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Earlier today Secretary of State Mike Pompeo and Secretary of Treasury Steven Mnuchin held a press conference in the White House to announce new sanctions against Iran. The secretaries also took questions from the press pool. [Video and Transcript Below]

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[Transcript] – SECRETARY MNUCHIN: Good morning, everybody. Thank you for being here today. I’d just like to make a brief comment before we talk about Iran sanctions. I’m sure everybody saw that the DOW hit 29,000. The President’s economic plans are clearly working. We’re looking forward to the China signing, USMCA, and a very strong economy this year.
As previously announced by the President, we are announcing additional sanctions against the Iranian regime as a result of the attack on U.S. and allied troops.
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A new ADP Payroll Report shows job gains of 202,000 from November to December 2019 far surpassing expectations. The increase was the largest gain since April ’19: “largest gain since April, driven mainly by professional and business services. Job creation was strong across companies of all sizes, led predominantly by mid-sized companies.”

(Reuters) – U.S. private payrolls increased by the most in eight months in December, pointing to sustained labor market strength though job gains last month were likely flattered by a seasonal quirk.
The ADP National Employment Report on Wednesday showed private payrolls jumped by 202,000 jobs last month, the largest gain since April, after an upwardly revised 124,000 rise in November.

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