Kudlow also said that the United States and China should both take down trade barriers as part of any agreement.
Kudlow, speaking in a live interview with Politico news outlet, said he backed U.S. Treasury Secretary Steven Mnuchin's efforts to reach an agreement with Beijing and that both countries must take action.
The companies are controlled by the Communist Party of China and could be used for operations to compromise US communications infrastructures, the report said. "It's not clear, of course, if he's planning to really reverse it or think of a solution in a larger context, but it is something that is just out of the norm", said Amanda DeBusk, the chair of the worldwide trade and government regulations practice at the firm Dechert, LLP.
An even higher-stakes fight looms over American allegations that China steals technology and forces US companies to hand over trade secrets in exchange for access to the Chinese market.
Liu's trip to Washington follows a visit by Mnuchin and other USA officials to Beijing earlier this month, where they conveyed a demand that China slash its trade surplus with the U.S.by $200 billion by the end of 2020.
ZTE announced last week the US sanctions would force it to curtail major operations.
President Donald Trump has stepped into the row surrounding the seven year ban on USA companies supplying Chinese telecommunications maker ZTE with software and components.
Winnipeg native and sister of Jets mascot is Golden Knights fan
The victor of this series will play in the Stanley Cup finals, facing off against the victor of the Washington-Tampa Bay series. Louis Blues ... "The team that can play as close to their game as possible - their identity game - wins".
On Monday, Commerce Secretary Wilbur Ross told reporters that the United States would consider alternatives to a supplier ban.
At the Beijing talks, the Trump administration handed China a list of hard-line demands that trade experts said could make it even more hard to resolve the trade disputes. The U.S. forbid American companies from selling products to the company for seven years, resulting in the company announcing last week it would have to shut down major operations.
Washington and Beijing have proposed tens of billions of dollars in tariffs in recent weeks, fanning worries of a full-blown trade war that could hurt global supply chains and dent business investment plans.
"The Chinese have said 'we want to see the specifics.' We gave them all the specifics in terms of trade issues".
Trump is seeking to cut the chronic US trade deficit by $100 billion and gain concessions over the policies that foreign companies say force them to share technology in order to gain market access. China's Commerce Ministry has pledged to immediately.
"We're still very far apart", he said.
Increasing U.S. exports of liquefied natural gas could also be an area where the two countries could agree, he said. "The more we can work things out, the better it's going to be not just for USA and China, but for the entire world economy", he said.