The University of California economics and public policy professor has assailed China's economic model for costing millions of American manufacturing jobs and taken issue with state-backed hackers stealing valuable US intellectual property.

He has also criticised the orthodox economic acceptance of free trade.

"I read one of Peter's books on America's trade problems years ago and was impressed by the clarity of his arguments and thoroughness of his research," Mr Trump said in a statement on Wednesday in the US.

"He has presciently documented the harms inflicted by globalism on American workers, and laid out a path forward to restore our middle class.

The Trump transition team said the National Trade Council will work with the National Security Council, the National Economic Council, and the Domestic Policy Council to fulfil the President-elect's vision of "peace and prosperity through military and economic strength".

Mr Trump was swept to power by winning industrial states such as Michigan, Ohio, Wisconsin and Pennsylvania and promising to restore manufacturing jobs.

The newly created council inside the White House is unusual because usually US Trade Representative's office is the main appointee responsible for trade. Mr Trump has signalled that billionaire industrialist and Commerce secretary nominee, Wilbur Ross, will also help formulate trade policy.


The appointments of the trade protectionists and pro-manufacturing advisers signals that Mr Trump is serious about renegotiating trade deals and might make good on his campaign threat to hit China with 45 per cent tariffs.

Peter Navarro as head of National Trade Council !!



Hooh boy.



Opening image from his documentary https://t.co/Zx5FLB2N7h pic.twitter.com/GRyR2wj8vq — James Fallows (@JamesFallows) December 21, 2016

In an October opinion article in The Wall Street Journal Mr Navarro and Mr Ross co-wrote that China's 2001 entry into the World Trade Organization was one of the three "worst trade deals in US history" alongside the North American Free Trade Agreement with Mexico and Canada, and the 2012 trade pact with South Korea.

"The Clinton team is primed to pass the worst deal yet—the Trans-Pacific Partnership, which would decimate the American manufacturing base," the pair wrote.

Mr Trump announced last month he would officially withdraw from the 12-country TPP.

Mr Navarro is a "visionary economist" who will develop trade policies that "shrink our trade deficit, expand our growth, and help stop the exodus of jobs from our shores", the Trump team statement said.The National Trade Council will advise the next president on innovative strategies in trade negotiations, coordinate with other agencies to assess US manufacturing capabilities and the defense industrial base, and help match unemployed American workers with new opportunities in the skilled manufacturing sector.

Donald Trump's Twitter diplomacy has injected new uncertainty into the global order. AP

"The National Trade Council will also lead the Buy America, Hire America program to ensure the President-elect's promise is fulfilled in government procurement and projects ranging from infrastructure to national defense."