Watch CNBC's full interview with Steve Bannon on the US China trade war

Seems to me a story of both the Europeans

And our Asian allies it is why I supported TPP

Call me why I did oppose this

Steel end dump

Aluminum tariffs on year I think we all needed to line up

Shoulder to shoulder on

It should not be us alone

Because if you talk to the Europeans I'm sure you have

You then exact

Back same problem

What are you hearing over there what are they saying

About our strategy

See but I think Trump strategy here is working these bilateral deals with Korea increase defense spending a bilateral deal Japan

Now a bilateral do is when you get into with the EU

It's here in Germany their business model of advanced Precision Manufacturing

Is what's going to be good at first

They are the tip of Siri look at made in China 20-25 it's the great you mention your article caca

Robotics company is the centerpiece

That they've taken

It's German bisque Germany business my when I talk to about politicians

Think Tank people in business people they understand

The storm is right over the horizon there going to be the tip of the

They're really going to be I think the first industrial power that's really got it

And the Europeans understand but you got to remember something

The EU or just like Hillary Clinton these people

The Elites in our country, you know this

They thought the rise of China on this business model of China was like the second law of thermodynamics

Physical reality we just had to accept

Thucydides trap says where the declining power

They're the rising power what Donald Trump says you've got it wrong

Where the rising power where the dominant power and we're going to reform the world along lines of

Democratic capitalist

And here's how it's going to be

You've got to break you got a

You got to Lance the boil

And that's what Donald Trump is doing right now I think our European allies going to come around I think they're going to individually come around to this cuz I think they

They see the wisdom

In the toughness of what trumps doing

Steve has always been clear to me the Chinese wanted to negotiate with mnuchin and not lighthouse

Because

I think life is

Someone who knows every carpet the Chinese have sold us over the last 30 years

How do you think that will play out in the administration

I think you're dead spot on I think Bob light I look at President Trump from my m&a days at Goldman Sachs

It's probably like the chairman CEO of the company in a massive bet the company

M&a

Inflight hearts

Is the Skadden Arps partner that your deal lawyer

Bob lighthizer

There's no