A favorable trade deal would be "very good" for China's economy as well as for the United States, Chairman of the Council of Economic Advisers Kevin Hassett said Monday.

"I think right now there's been almost a freeze on capital spending over there because people are worried that maybe there's not going to be a deal," Hassett told Fox Business' "Mornings with Maria." "I think if we open up Chinese markets to U.S. firms, U.S. farmers, to natural gas producers, and people with intellectual property they didn't move over there because they're worried it might get stolen, there would be a massive amount of new business."

Meanwhile, the Federal Reserve on Friday issued the GDP forecast for the first quarter at .3 percent, a low figure that could improve if there is another large number of jobs posted.

"We're going to get jobs again this week," Hassett said. "If we get another really big number, we'll have a lot of confidence that something as low as 3/10 isn't going to happen."

He also discussed capital expenditure spending, noting that this year, a little less is expected from last year's 9 percent amount, but still, "we're going to get plenty of output because all of the machines we bought and the factories we built last year will produce output this year."

Consumer spending, meanwhile, is holding steady, with people spending "what they earn, a little bit less," and the savings rate is "seasonable and savings is funding an investment boom," said Hassett, adding it is "hard to think of a sweeter spot for the economy to be in."

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