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Katherine: This morning we got news that China's growth had slowed. What are your thoughts on the U.S.-China trade war?

Newt Gingrich:  Well, I think that President Trump understands that if you're the biggest customer, you have an enormous advantage. No rational company picks a fight with his biggest customer because it's the customer ultimately has the pocket book. And I think that Xi Jinping, uh, didn't quite realize that so much of China's growth had been dependent on American generosity and American willingness to allow the Chinese to break the rules. And now he's discovering, I just saw an article this morning about how many different products are now moving to the Philippines or Vietnam or Thailand and you're seeing supply chain shift out of China, uh, in a way that the president has said openly, if they don't get a deal, pretty soon they're going to find that they are permanently a smaller part of the world supply chain.

Katherine: Do you think they were going to get a deal in the next couple of months?

Newt Gingrich: Probably. I think the pressure on Xi Jinping to reach an agreement is pretty enormous. And I think on the other hand, the president has less and less incentive because he's begun to realize how much real leverage he has over China. So I think the Americans are getting a little tougher in what they want in the agreement, and it's important to remember, whatever the deal is publicly, whatever they sign, what really matters is enforcement. Uh, we've had lots of deals with the Chinese that they just cheerfully ignore. Uh, and so I think that, uh, you always have to look at part two, which is what's the enforcement mechanism? How serious are we about it? Uh, and, uh, do the Chinese come to realize that they really have to change? It can't just be on the surface, its gotta be real change.

Following the news that China's economic growth was slowing, what should U.S. investors be thinking when it comes to the U.S.-China trade war?

Newt Gingrich, a former Speaker of the House, sat down with TheStreet to discuss whether or not he expects a trade deal in the coming months. 

Gingrich also explained his current thoughts on the trade war.

"Well, I think that President Trump understands that if you're the biggest customer, you have an enormous advantage. No rational company picks a fight with his biggest customer because it's the customer ultimately has the pocketbook," explained Gingrich.

"And I think that Xi Jinping didn't quite realize that so much of China's growth had been dependent on American generosity and American willingness to allow the Chinese to break the rules. And now he's discovering, I just saw an article this morning about how many different products are now moving to the Philippines or Vietnam or Thailand and you're seeing supply chain shift out of China, uh, in a way that the president has said openly, if they don't get a deal, pretty soon they're going to find that they are permanently a smaller part of the world supply chain."

Watch the video to find out more about when Gingrich expects to see a trade deal. 

China-U.S. Trade War About To Get Uglier