In an interview with The American Prospect posted online yesterday, Bannon tells the liberal publication that the US is losing the economic race against China. He also talks about purging his rivals from the Defense and State departments.
Bannon is also asked about the white supremacist movement, whose march on Charlottesville, Virginia, last weekend led to deadly violence. He dismisses them as "losers," "a fringe element" and "a collection of clowns."
"There's no military solution (to North Korea's nuclear threats), forget it," Bannon says. "Until somebody solves the part of the equation that shows me that 10 million people in Seoul don't die in the first 30 minutes from conventional weapons, I don't know what you're talking about, there's no military solution here, they got us."
Trump tweeted earlier yesterday that North Korean leader Kim Jong Un "made a very wise and well-reasoned decision" by backing down after heightening fears of nuclear conflict in a series of combative threats, including against the US territory of Guam.
"The economic war with China is everything," Bannon says.
"And we have to be maniacally focused on that. If we continue to lose it, we're five years away, I think, 10 years at the most, of hitting an inflection point from which we'll never be able to recover."
A Chinese foreign ministry spokeswoman, Hua Chunying, said yesterday both sides have benefited from trade.
Hua appealed for dialogue to "preserve the sound and steady growth of China-US relations."
Bannon was a key general election campaign adviser and has been a forceful but contentious presence in a divided White House. The former leader of conservative Breitbart News, Bannon has drawn fire from some of Trump's closest advisers, including son-in-law Jared Kushner.
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