(What’s Left of) Our Economy: The Public Outscores the Experts on China Trade Policy

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(What's Left of) Our Economy, allies, America First, Blob, Center for Strategic and International Studies, China, CSIS, elites, globalism, multilateralism, tariffs, Trade, trade war, Trump, World Trade Organization, WTO

So many big takeaways from a new poll on U.S. and global attitudes toward China and U.S. China policy (both the economic and national security dimensions), I hardly know where to begin! But if I could only write a lede paragraph for a single news article (or blog item), here’s what I’d say: The American public is a great deal more sensible on how to deal with the People’s Republic than so-called “thought leaders.” And what I mean by “more sensible” is more “America First-y” and less globalist.

The survey was conducted by the Center for Strategic and International Studies (CSIS), a Washington, D.C.-based think tank not only squarely in the globalist camp, but a charter member of the globalist, bipartisan U.S. foreign policy “Blob” (which includes a sizable trade and economic sub-Blob) that exerted dominant influence over America’s course in world affairs until Donald Trump came along, and whose supposed expertise still mesmerizes the Mainstream Media.

Of special interest, CSIS sampled opinion from everyday Americans, those so-called thought leaders (whose follower-ship, as implied above, is greatly diminished), and thought leaders from countries that are U.S. allies or “partners.”

The gap between public and elites on China policy views seems widest on the economic and trade issues that President Trump has made so central to his approach towards the People’s Republic, and the CSIS survey contains decidedly good news for him and his fans in this area: The general public is much more supportive of the “go-it-alone,” unilateral sanctions and tariffs imposed by Mr. Trump to combat and/or eliminate Chinese transgressions in this area than the Blob-ers.

Although a multilateral approach (using “international agreements and rules to change China” economically) won plurality backing among the general public (34.8 percent), fully 69 percent of the U.S. thought leaders favored this route. Yet nearly a third of the U.S. public (32.8 percent) endorsed employing “U.S. government tools like sanctions and tariffs”, versus only three percent of the deep thinkers.

As I’ve written repeatedly, (e.g., here and here) a multilateral China trade strategy is bound to fail because international institutions (like the World Trade Organization) are too completely filled by countries that either rely heavily on China-style predation to compete in the global economy, and because even (or especially?) longstanding U.S. treaty allies had been doing business so profitably with the People’s Republic that the last development they wanted to see was a disruption of the pre-Trump status quo. So support for multilateralism in this case can legitimately be taken as support for do-nothing-ism – especially since the vast majority of these elites so enthusiastically pushed for the reckless U.S. expansion of commerce with China that’s lined many of their pockets, but that’s undermined American prosperity and national security.

The CSIS poll, moreover, provides some indirect evidence for this argument: Nearly as high a share of the foreign thought leaders backed a multilateral approach for dealing with China economically (65 percent) as their U.S. counterparts. And their support of U.S.-only approaches (seven percent) was only slightly higher than that of the U.S. thought leaders’ three percent. (The foreign thought leaders may be slightly more gung ho for America going it alone due to confidence that their own products will fill any gaps in the China market left by U.S. producers shut out by the trade wars. On a net basis, though, their countries are coming out losers this year.)

At the same time, one surprising (at least to me) economics-related finding emerged from the survey: Whether we’re talking about the American people generally, or thought leaders at home or abroad, just under 20 percent favor substantial decoupling from China as the best economic approach for the United States.

When it comes to messaging, however, the survey isn’t such great news for Mr. Trump – and Trumpers – on China trade issues. On the one hand, answers to the question on evaluating his performance in this area can – although with a stretch – be interpreted to show majority support for the view that his record has achieved noteworthy gains. Principally, 27.8 percent of U.S. public respondents agreed that the President’s China measures have “been effective in producing some tactical changes in Chinese economic policy” and 9.9 percent believe they have “been effective in forcing long-term changes.” Those groups add up to 37.7 percent of the sample.

Another 20.5 percent checked the box stating that Trump policies have “hurt U.S. consumers and exporters but protected important U.S. industries.” A case can be made that at least some members of this group would give these policies good grades, or that many would give them partly good grades, possibly bringing the total for positive views somewhere in the mid-40 percent neighborhood.

Much more certain, however, is that the most popular single answer (with 41.8 percent support) was that the trade war “has damaged U.S. economic interests without achieving positive change in China.”

Also signaling a Trump China messaging problem – as with much other commentary, the CSIS survey mostly measures China policy success as changing Chinese behavior. In my view, that goal is much less important – because it’s much less realistic, at least in terms of producing verifiable reform – than protecting U.S.-based producers from China’s economic predation. The relative resilience shown by domestic industry both throughout the trade war and into the CCP Virus-induced recession indicate that this goal is being achieved. But neither the President nor his economic nor his campaign team mentions it much, if at all.

CSIS’ polling also found that fully 71 percent of U.S. thought leaders gave Trump’s China economic policies the big thumbs down – and although they don’t vote, their aforementioned influence in the Mainstream Media could partly explain why broader American opinion on the Trump record seems so divided. (For the record, foreign thought leaders weren’t asked to rate the Trump strategy.)

But having established that everyday Americans have a good deal to teach the experts on China trade and economic policy, how do the two compare on China-related national security policies? As indicated above, the gap here isn’t nearly so wide, but worth exploring in some detail – as I’ll do in a forthcoming post!

Im-Politic: Why China’s U.S. Election Interference is a Very Big Deal

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battleground states, Center for Strategic and International Studies, China, Chinese Americans, collusion, Democrats, election 2020, elections, entertainment, Freedom House, Hollywood, Hoover Institution, Im-Politic, Mike Pence, multinational companies, Nancy Pelosi, National Basketball Association, NBA, Robert Draper, Robert O'Brien, social media, The New York Times Magazine, think tanks, Trump, Trump-Russia, Wall Street

It’s baaaaaaack! The Russia collusion thing, I mean. Only this time, with an important difference.

On top of charges that Moscow is monkeying around with November’s U.S. elections to ensure a Trump victory, and that the President and his aides are doing nothing to fend of this threat to the integrity of the nation’s politics, Democrats and their supporters are now dismissing claims administration about Chinese meddling as alarmism at best and diversionary at worst.

In the words of House Speaker Nancy Pelosi, commenting on recent testimony from U.S. intelligence officials spotlighting both countries’ efforts, to “give some equivalence” of China and Russia on interference efforts “doesn’t really tell the story. 

She continued, “The Chinese, they said, prefer [presumptive Democratic nominee Joe] Biden — we don’t know that, but that’s what they’re saying, but they’re not really getting involved in the presidential election.” ,

The Mainstream Media, as is so often the case, echoed this Democratic talking point. According to The New York Times‘ Robert Draper (author most recently of a long piece in the paper’s magazine section on Mr. Trump’s supposed refusal to approve anti-Russia interference measures or take seriously such findings by the intelligence community ), China “is really not able to affect the integrity of our electoral system the way Russia can….”

And I use the term “Democratic talking point” for two main reasons. First, the Chinese unquestionably have recently gotten into the explicit election meddling game – though with some distinctive Chinese characteristics. Second, and much more important, China for decades has been massively influencing American politics more broadly in ways Russia can’t even dream about – mainly because so many major national American institutions have become so beholden to the Chinese government for so long thanks to the decades-long pre-Trump policy of promoting closer bilateral ties.

As for the narrower, more direct kind of election corrupting, you don’t need to take the word of President Trump’s national security adviser, Robert O’Brien that “China, like Russia and Iran, have engaged in cyberattacks and fishing and that sort of thing with respect to our election infrastructure and with respect to websites.”

Nor do you have to take the word of Vice President Mike Pence, who in 2018 cited a national intelligence assessment that found that China “ is targeting U.S. state and local governments and officials to exploit any divisions between federal and local levels on policy. It’s using wedge issues, like trade tariffs, to advance Beijing’s political influence.”

You can ignore Pence’s contention that that same year, a document circulated by Beijing stated that China must [quoting directly] “strike accurately and carefully, splitting apart different domestic groups” in the United States.

You can even write off China’s decision at the height of that fall’s Congressional election campaigns to take out a “four-page supplement in the Sunday Des Moines [Iowa] Register” that clearly was “intended to undermine farm-country support for President Donald Trump’s escalating trade war….”

Much harder to ignore, though: the claim made last year by a major Hoover Institution study that

“In American federal and state politics, China seeks to identify and cultivate rising politicians. Like many other countries, Chinese entities employ prominent lobbying and public relations firms and cooperate with influential civil society groups. These activities complement China’s long-standing support of visits to China by members of Congress and their staffs. In some rare instances Beijing has used private citizens and companies to exploit loopholes in US regulations that prohibit direct foreign contributions to elections.”

Don’t forget, moreover, findings that Chinese trolls are increasingly active on major social media platforms. According to a report from the research institute Freedom House:

“[C]hinese state-affiliated trolls are…apparently operating on [Twitter] in large numbers. In the hours and days after Houston Rockets general manager Daryl Morey tweeted in support of Hong Kong protesters in October 2019, the Wall Street Journal reported, nearly 170,000 tweets were directed at Morey by users who seemed to be based in China as part of a coordinated intimidation campaign. Meanwhile, there have been multiple suspected efforts by pro-Beijing trolls to manipulate the ranking of content on popular sources of information outside China, including Google’s search engine Reddit,and YouTube.”

The Hoover report also came up with especially disturbing findings about Beijing’s efforts to influence the views (and therefore the votes) of Chinese Americans, including exploiting the potential hostage status of their relatives in China. According to the Hoover researchers:

“Among the Chinese American community, China has long sought to influence—even silence—voices critical of the PRC or supportive of Taiwan by dispatching personnel to the United States to pressure these individuals and while also pressuring their relatives in China. Beijing also views Chinese Americans as members of a worldwide Chinese diaspora that presumes them to retain not only an interest in the welfare of China but also a loosely defined cultural, and even political, allegiance to the so-called Motherland.

In addition:

“In the American media, China has all but eliminated the plethora of independent Chinese-language media outlets that once served Chinese American communities. It has co-opted existing Chineselanguage outlets and established its own new outlets.”

Operations aimed at Chinese Americans are anything but trivial politically. As of 2018, they represented nearly 2.6 million eligible U.S. voters, and they belonged to an Asian-American super-category thats been the fastest growing racial and ethnic population of eligible voters in the country.

Most live in heavily Democratic states, like California, New York, and Massachusetts, but significant concentrations are also found in the battleground states where the many of the 2016 presidential election margins were razor thin, of which look up for grabs this year, like Florida, Georgia, North Carolina, Texas, Michigan, and Pennsylvania.

As for the second, broader and indirect, Chinese meddling in American politics, recall these developments, many of which have been documented on RealityChek:

>U.S.-owned multinational companies, which have long profited at the expense of the domestic economy by offshoring production and jobs to China, have just as long carried Beijing’s water in American politics through their massive contributions to U.S. political campaigns. The same goes for Wall Street, which hasn’t sent many U.S. operations overseas, but which has long hungered for permission to do more business in the Chinese market.

>These same big businesses continually and surreptitiously inject their views into American political debates by heavily financing leading think tanks – which garb their special interest agendas in the raiment of objective scholarship. By the way, at least one of these think tanks, the Center for Strategic and International Studies, has taken Chinese government money, too.

>Hollywood and the rest of the U.S. entertainment industry has become so determined to brown nose China in search of profits that it’s made nearly routine rewriting and censoring material deemed offensive to China. And in case you haven’t noticed, show biz figures haven’t exactly been reluctant to weigh in on U.S. political issues lately. And yes, that includes the stars of the National Basketball Association, who have taken a leading role in what’s become known as the Black Lives Matter movement, but who have remained conspicuously silent about the lives of inhabitants of the vast China market that’s one of their biggest and most promising cash cows.

However indirect this Chinese involvement in American politics is, its effects clearly dwarf total Russian efforts – and by orders of magnitude. Nor is there any reason to believe that Moscow is closing the gap. In fact, China’s advantage here is so great that it makes a case for a useful rule-of-thumb:  Whenever you find out about someone complaining about Russia’s election interference but brushing off China’s, you can be sure that they’re not really angry about interference as such. They’re just angry about interference they don’t like.`      

Im-Politic: What Even Barr Has Missed About the China Threat

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Center for Strategic and International Studies, China, idea laundering, Im-Politic, Jeanne Whalen, lobbying, Mary E. Lovely, multinational corporations, offshoring, Peterson Institute for International Economics, Scott Kennedy, Steven Zeitchik, think tanks, Trump, Washington Post, William P. Barr

As masterly as Attorney General William P. Barr’s Thursday speech about China’s sweeping “whole-of-society” challenge to the United States was – and “masterly” is an entirely fitting description – it still missed one key danger that’s been created by big Americans businesses’ determination to advance China’s agenda. And conveniently, the nature and importance of this danger was (unwittingly, to be sure) made clear by the Washington Post‘s coverage of Barr’s alarm bell-ringing.

The Attorney General’s address was unquestionably a landmark – and a badly needed one – in the history of U.S.-China relations. The decisive break of course was Donald Trump’s election as President. For decades, American administrations had permitted and even encouraged U.S. multinational corporations and their recklessly shortsighted offshoring- and tech transfer-happy agenda to dominate policymaking toward China. (See here for the Bill Clinton-era origins of this approach.) Sometimes raggedly to be sure, the Trump administration has been reversing decisions that had exponentially increased China’s wealth and therefore military to the detriment of U.S. prosperity and national security.

But Barr’s speech indicates the launch of a new phase in this America First strategy – not only spotlighting corporate activities that keep endangering America, but naming and shaming some of the leading perps.

Especially important was the warning about Chinese leaders “and their proxies reaching out to corporate leaders and inveighing them to favor policies and actions favored by the Chinese Communist Party.” As Barr explained:

“Privately pressuring or courting American corporate leaders to promote policies (or politicians) presents a significant threat, because hiding behind American voices allows the Chinese government to elevate its influence and put a “friendly face” on pro-regime policies.  The legislator or policymaker who hears from a fellow American is properly more sympathetic to that constituent than to a foreigner.  And by masking its participation in our political process, the PRC avoids accountability for its influence efforts and the public outcry that might result, if its lobbying were exposed.”

In other words, Barr was talking about a form of “idea laundering” – the practice of pushing proposals that would benefit special interests first and foremost in ways meant to disguise their source of sponsorship and funding.

I identified one variety of idea laundering way back in 2006 – when I testified to Congress about how prevalent it had become for these offshoring-happy multinationals to pay think tanks to create the illusion that their self-serving objectives were also strongly supported by disinterested experts solely dedicated to truth-seeking. Barr has now pointed out that the multinational executives who have been funding idea laundering through think tank studies and op-eds and the like have also begun serving themselves as lobbyists-on-the-sly for China. In addition, he usefully warned them that they risk running afoul of U.S. laws requiring transparency from any individual or entity shilling for foreign interests.

But I wish Barr had mentioned the think tank version of idea laundering because a reminder of its perils came the day after he spoke, in the form of that Post coverage. Reporters Jeanne Whalen and Steven Zeitchik described and cited verbatim most of Barr’s indictment of corporate behavior. They rightly sought and received reactions from some of the companies fingered (Apple and Disney).

But then they played into the hands of the idea launderers when they claimed that “The attorney general’s warnings drew criticism from some economists, who said he at times exaggerated the threat China poses and downplayed benefits American industry has gained by trading with China….”

That’s surely the case, but the two individuals whose views the Post presented were hardly just any old economists. In fact, one – Scott Kennedy – isn’t even an economist, in the sense that he holds no academic degree in economics. Far more important, though, is that both of these authorities work for and get paid by think tanks that are heavily funded by offshoring multinationals – the Center for Strategic and International Studies (which employs Kennedy) in the academic-y-sounding position of “Senior Adviser and Trustee Chair in Chinese Business and Economics” and Mary E. Lovely, who is an economist (at Syracuse University) but who’s also a (academic-y-sounding) “Senior Fellow” at the Peterson Institute for International Economics.

Moreover, it’s crucial to note that both the Center for Strategic Studies and the Peterson Institute are also financed both by foreign multinational companies and even foreign governments with stakes in returning to the pre-Trump U.S. China trade and global trade policy status quo just as great as that of U.S.-owned multinationals. In fact, the Center even lists a contribution in the $5,000-$99,000 annual range from the Shanghai Institutes for International Studies, which, like all Chinese think tanks, is an arm of the Chinese regime. (It receives U.S government funding as well – in the greater-than-$500,000 annual neighborhood.)

To repeat a point I’ve made…repeatedly… there is nothing intrinsically wrong with any of these individual think tankers, the think tanks themselves, businesses, or even foreign governments trying to influence U.S. public policy. But as Barr has noted, there is everything wrong with these activities being conducted deceptively, which is the case with both forms of idea laundering. And the dangers to American democracy and U.S. interests are greatly compounded when journalists who should know better (and the two Washington Post reporters named above are hardly the only examples) help sustain this charade.

Im-Politic: The Foreign Governments Funding Think Tank Experts on Trump Tariffs

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aluminum, Brookings Institution, Center for Strategic and International Studies, Im-Politic, Peterson Institute for International Economics, steel, tariffs, think tanks, Trade, Trump

With the announcement of the Trump tariffs on steel and aluminum – and the prospect of more trade curbs to come – the news organizations on which Americans rely for accurate and impartial information have understandably turned to private sector specialists for facts and analysis.

What’s much less understandable is that many of these specialists work at Washington, D.C.-headquartered think tanks that receive significant funding from foreign governments – many of whose economies will be profoundly affected by any major changes in U.S. trade policy. Even worse, the press coverage of the Trump tariffs has consistently failed even to mention these conflicts of interest – even though some news outlets have reported on the subject in considerable detail.

To give you an idea of how widespread these conflicts are, here’s a list of the foreign government donors for three major think tanks, drawn directly from their websites, and some figures indicating the often major sums these governments (including groups they fund) have contributed to these organizations’ budgets for the most recent data year available:

 

The Brookings Institution, 2016-17:

$1 million – $1.999999 million

Government of Norway:

$500,000-$999,999

Australian Government, Department of Foreign Affairs & Trade

United Arab Emirates

$250,000-$499,999

The Japan Foundation Center for Global Partnership

Japan International Cooperation Agency

Taipei Economic and Cultural Representative Office in the United States

$100,000-$249,000

Australian Government, Department of Industry, Innovation, & Science

$50,000-$99,999

Government of Denmark

European Recovery Program, German Federal Ministry of Economic Affairs and Energy

European Union

Government of Finland

Korea International Trade Association

CAF-Development Bank of Latin America

Department for International Development, United Kingdom

Embassy of France

Japan Bank for International Cooperation

Temasek Holdings

The Korea Foundation

Korea Institute for Defense Analysis

Embassy of the Kingdom of the Netherlands

 

Peterson Institute for International Economics, 2016

$25,000-$49,999

Korea Institute for International Economic Policy

Swiss National Bank

Up to $24,999

Central Bank of China, Taipei

European Parliament

Japan Bank for International Cooperation

Korea Development Institute

Korea International Trade Association

Embassy of Liechtenstein

Monetary Authority of Singapore

 

Center for Strategic and International Studies 2016-17

$500,000 and up

Japan

Taiwan

UAE

Academy of Korean Studies

Korea Foundation

$100,000-$499,999

Australia

Denmark

South Korea

Turkey

$5,000-$99,999

Canada

China

France

Liechtenstein

The Netherlands

United Kingdom

Japan Foundation Center for Global Partnership

European Development Finance Institutions

Norwegian Institute of Defence Studies

Norwegian Institute of International Affairs

Shanghai Institutes for International Studies

Taiwan Foundation for Democracy

 

As I’ve written before, even analysts whose paychecks are wholly or partly written by foreign governments (or other special interests, like offshoring-happy multinational companies) can provide valuable insights.  They also have every right to weigh in on any policy debate they choose.  But unless you believe we don’t live in a world in which money talks, and that this goes double in a national capital, it’s clear that news consumers have an equally important right to know the source of the money behind the views they’re reading about – and that the media is letting its readers, viewers, and listeners down when this information is kept concealed.