Im-Politic: The Latest Trump CCP Virus Fake News

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Beth Cameron, CCP Virus, CDC, Centers for Disease Control and Prevention, China, coronavirus, COVID 19, ebola, Im-Politic, National Security Council, NSC, Obama administration, pandemic, Politico, Tim Morrison, TIME, Trump, Washington Post, WHO, World Health Organization, Wuhan virus

I’m getting sick and tired of debunking Mainstream Media myths spread about the Trump administration’s failures in dealing with the CCP Virus (as I have now taken to calling it, in honor of the Chinese Communist Party regime’s role in covering it up and thereby preventing timely responses all over the world). And maybe you’re getting sick and tired of reading them.

All the same, the attacks keep coming, and three in particular that have appeared in the last week – which happen to be closely related to each other – are screaming out for pushback.

Off the bat, though, some essential context: As I’ve tweeted repeatedly, I agree that the President’s anti-Wuhan Virus (another monicker I’ve been using) policy has been flawed. Chiefly, Mr. Trump does deserve criticism for claiming until recently that everything’s under control – although I can’t help but continuing to note that the World Health Organization (WHO) didn’t declare the situation to be a global pandemic until March 11. That’s a grand total of nine days ago.

In addition, testing of course took off way too slowly. I strongly suspect that this stemmed from outmoded guidelines and manufacturing processes at the federal Centers for Disease Control and Prevention (CDC) that predated the Trump inauguration. But the buck in the U.S. government ultimately and rightly stops on the President’s desk, and a Chief Executive who’s described himself as a Can-do-type disrupter should have stopped the agency’s business-as-usual approach faster.

As for the broadsides with much less, if any, merit? The first concerns the claim that the administration foolishly abolished the National Security Council (NSC) office that it inherited from the Obama administration that focused on protecting the country from pandemics. This allegation, first made by that office’s first director, has been (to put it charitably) exposed as misleading by one of her NSC successors, Tim Morrison.

He’s explained that the office’s responsibilities were merged into a new office that looked at pandemics more holistically, because they’re closely related to challenges like those posed by weapons of mass destruction generally. And Morrison has contended – credibly – that thanks to various preparations made by this reorganized NSC, an Ebola outbreak was quashed quickly.

To be sure, as I’ve pointed out, the emergence of diseases in regions like Central Africa, which have scant connections with the global economy, and in places like China, which have extensive connections, pose dramatically different challenges. And I continue to think, as argued, that bureaucratic reforms involving such tiny government agencies are game-changers in real-world terms. But you’d think that the initial accuser, Beth Cameron, might consider apologizing. And that the Washington Post would acknowledge a huge fact-checking failure (though it did run the rejoinder).

What’s even less well known – and has gone even more scantily reported than the Morrison observations – is that Mr. Trump’s predecessors approved decisions that actually do look like genuine pandemic defense downgrades. According to this TIME magazine post:

“The Trump Administration has become the third White House in a row to downgrade or eliminate the senior White House personnel tasked with tracking disease and bioterrorism threats, according to Kenneth Bernard, a retired Rear Admiral and physician, who served as a special assistant to the president for security and health during the Clinton and George W. Bush administrations.”

TIME continues:

Bernard “served in the top role in the Clinton National Security Council, only to be ignored by the incoming George W. Bush Administration, which eliminated his special advisor position.

“But after the 9/11 attacks on New York and Washington spurred fears Al-Qaeda would follow up with a bioweapons attack, and the anthrax attacks of 2001, the Bush Administration re-established the office, bringing Bernard back to serve as the first former Special Assistant to the President for Biodefense, as a subset of the White House’s Homeland Security Council (HSC), which later helped combat outbreaks of SARS and the Avian Influenza.”

And as for the Obama record:

“Under Obama’s NSC, Bernard says the office was downgraded again, until the 2014 Ebola crisis emerged, and President Barack Obama appointed ‘Ebola Czar’ Ron Klain. National Security Advisor Susan Rice later institutionalized the office in 2015, calling it the Directorate for Global Health and Security and Biodefense.”

Not exactly a model of foresight.

The next two myths were propagated (and weirdly invalidated at the same time) by this supposed Politico scoop about a transition-period Obama administration warning to the incoming Trump administration to ramp up for an inevitable big-time pandemic. The thrust of the article, written by Nahal Toosi, Daniel Lippman, and Dan Diamond, is that outgoing Obama officials held a briefing with soon-to-be Trump counterparts on the potential dangers of the kind of bio-threat being faced by the nation right now, and that the Trump-ers were decidedly uninterested.

The allegedly clear implication, as the article quoted former national security advisor Susan E. Rice as recently writing: “Rather than heed the warnings, embrace the planning and preserve the structures and budgets that had been bequeathed to him, the president ignored the risk of a pandemic.”

As noted above, the structures and budgets point is bogus. But so is the warnings point. And we know this in part because, as Politico stated (in paragraph 18), “None of the sources argued that one meeting three years ago could have dramatically altered events today.”

Also important to note: The authors presented documents presented at the meeting, and they make clear the phoniness of both the charge that Trump officials were (uniquely) caught flat-footed by CCP Virus testing requirements, and that the leadership vacuum they’ve created has given the states no choice but to fill a gap that’s not their responsibility.

Except the documents say absolutely nothing about boosting testing capabilities or modifying CDC guidelines. And they specify that “State and local governments lead public health response,” especially when it comes to “hospital preparedness and response.”

Recent news reports have created some optimism that effective anti-CCP Virus medicines may be developed sooner than initially expected.  Too bad there’s no reason to think that another serious malady – Trump Derangement Syndrome – will soon come under control.

Those Stubborn Facts: Why Health Security Should “Trump” Free Trade for Americans

Tags

active pharmaceutical ingredients, CCP Virus, China, coronavirus, COVID 19, European Union, exports, free trade, globalization, health security, India, medical devices, pandemic, pharmaceuticals, surgical equipment, Those Stubborn Facts, Trade

“[White House Office of Manufacturing and Trade Policy Director Peter] Navarro raised a lot of eyebrows when he warned that [international trade] fights over [healthcare-related goods] loomed and told Fox Business Network on Feb. 23: ‘People need to understand in crises like this, we have no allies.’ But what then seemed potentially alarmist now looks like foresight.”

– Bloomberg News, March 16, 2020

Number of countries that have curbed exports of healthcare-related goods*: 38**

 

*Includes pharmaceuticals, active pharmaceutical ingredients, medical devices, surgical appliances and supplies

**India, China, India, Taiwan, Indonesia, Belarus, Malaysia, Thailand, South Korea, Russia, United Kingdom, and the 27 members of the European Union

 

(Sources: “Export Wars Erupt as Officials Curb Supplies to Battle Virus,” by Shawn Donnan, Bloomberg News, March 16, 2020, https://www.bloomberg.com/news/articles/2020-03-16/trade-war-latest-welcome-to-the-coronavirus-export-wars-of-2020-k7uf1k01; “The Global Mask Shortage May Get Much Worse,” by K Oanh Ha, Ibid., March 10, 2020, https://www.bloomberg.com/news/articles/2020-03-10/the-global-mask-shortage-may-be-about-to-get-much-worse; “Export Trade News,” Foreign Trade Online [latest daily edition], https://www.foreign-trade.com/export_trade.htm; “The World Needs Masks. China Makes Them – But Has Been Hoarding Them,” by Keith Bradsher and Liz Alderman, The New York Times, March 16, 2020, https://www.nytimes.com/2020/03/13/business/masks-china-coronavirus.html; and “UK bans parallel export of two COVID-19 treatment candidates to protect national supply,” by Janet Beal, “Life Sciences,” IHS Markit, February 26, 2020, https://ihsmarkit.com/research-analysis/uk-bans-parallel-export-of-two-covid19-treatment-candidates.html)

Making News: Back on National Radio Tonight Talking China, the U.S., & the Wuhan Virus…& More!

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Breitbart News Tonight, China, conservatives, coronavirus, COVID 19, globalization, Gordon G. Chang, health security, Making News, manufacturing, medical devices, offshoring, pandemics, pharmaceuticals, Republicans, The Epoch Times, The John Batchelor Show, Wuhan virus

I’m pleased to announce that I’m scheduled to return to John Batchelor’s nationally syndicated radio show tonight to talk about U.S.-China relations “in a time of Wuhan Virus.”  (Spoiler alert:  They’re not good.  And barring a sea change in China’s behavior, they shouldn’t be.)

The segment, which will also feature co-host Gordon G. Chang, is slated to start at 10:15 PM EST and you can listen live here.  Can’t tune in tonight?  I’ll be posting a link to the podcast as soon as one’s available.

Speaking of podcasts, here’s one of a “Breitbart News Tonight” interview from last Friday night on the economics and politics of this coronavirus era, with a special focus on the implications for small-government Republicans and conservatives.  Click here and scroll down till you see my name.  Moreover, if you’re not into podcasts, you can read a fine summary at this link.  FYI, I don’t use the phrase “extinction event” often.

Finally, my views were covered recently in two Epoch Times articles.  In the first, from March 3, I emphasized the importance of trade and related economic policies needed to ensure that the United States regains its ability to supply its own pharmaceutical and medical device needs.  In the second, I similarly observed that the very idea of globalizing and offshoring the domestic manufacturing base has become more urgent than ever to challenge given emerging threats like pandemics.

And keep checking in with RealityChek for news of upcoming media appearances and other developments.

Our So-Called Foreign Policy: Another Wuhan Virus Lesson Globalists Need to Learn

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alliances, allies, China, core deterrence, coronavirus, COVID 19, Eastern Europe, extended deterrence, globalism, Japan, NATO, North Atlantic treaty Organization, North Korea, nuclear deterrence, nuclear war, Our So-Called Foreign Policy, Russia, South Korea, Soviet Union, tripwire, Western Europe, Wuhan virus

Here’s a seemingly off-the-wall question: What does the Wuhan Virus have to do with U.S. policy toward its global security alliances?

And here’s why it’s not only not a perfectly sensible and even vital question, but why the best answer is “Plenty”: Because these decades-old globalist arrangements now pose to America risks that look like the coronavirus-in-not-so-miniature. Even worse: The benefits to the United States these days are much more modest than  during the Cold War era when they were created.

The purely national security arguments should by now be familiar to RealityChek regulars. (See here and here for fuller descriptions of the points I’m about to summarize.) The North Atlantic Treaty Organization (NATO – which has linked the United States, Europe, and Canada), and the bilateral security relationships between the United States and Japan and South Korea, originally aimed to prevent the Soviet Union from dominating global centers of economic and technological strength and potential, and therefore of military strength and potential.

In fact, these countries and regions were considered so important that American policy made clear that Washington was ready to wage nuclear war – with all the dangers such conflicts would create for the U.S. homeland. Moreover, because the allies (or protectorates, as many call them) understandably doubted that American leaders really would, when the chips were down, “sacrifice New York to save London,” Washington felt compelled to station the U.S. military directly in harm’s way.

The idea was never to stop Soviet or North Korean or Chinese aggression with conventional forces alone. Quite the contrary. These units were intended as trip-wires. The very likelihood that they’d be annihilated was supposed to put irresistable pressure on a U.S. President to respond to attacks with nuclear weapons. In turn, this prospect was supposed to deter U.S. adversaries from attacking in the first place.

Such an approach (called “extended deterrence” by the cognoscenti – as opposed to “core deterrence,” which sought to protect the United States itself) made obvious sense when the United States enjoyed a monopoly on nuclear weapons. It even made arguable (though less obvious) sense when the Soviets reached nuclear parity, and the Chinese developed their own rudimentary nukes.

Since the end of the Cold War, however, it’s made much less sense, and more recent developments have turned this nuclear umbrella border-line – and crazily – suicidal. For the Soviet Union is gone. It’s been partly replaced with a newly aggressive Russia, but the countries most threatened by Moscow are not the economic and technological giants of Western Europe, but the newer NATO members of Eastern Europe – whose security was never remotely vital to the United States, as evinced by the long decades they spent as Soviet satellites or actual parts of the former USSR.

In East Asia, nuclear forces both in China and in North Korea can now not only hit the United States (or in the case of Pyongyang, are rapidly approaching that capability). When it comes to China, these weapons’ launch platforms have become much more difficult for the United States even to find, much less take out before they can be used. In other words, for all the continuing and even growing economic and technological importance of Japan and South Korea – which is considerable – the nuclear threats to America from their leading potential adversaries have grown faster both quantitatively and qualitatively.

And in all these alliance cases, despite President Trump’s clear interest in a fundamentally new America First-type foreign policy, and even though the allies are amply capable of fielding the forces needed to defend themselves, they choose not to. Therefore, U.S. forces still serve as tripwires in both Europe and Asia.

It’s likely that the economic damage done to the United States from a North Korean nuclear nuclear bomb landing in a big American city or two wouldn’t compare to the coronavirus economic damage we’re seeing now and are likely to see. But who can doubt that this damage will be substantial in economic terms, and catastrophic from a humanitarian standpoint? And in the areas hit, the harm to businesses and their workers could well last much longer. Further, the impacts of the kind of much larger retaliatory strikes that could come from China (if it invades Taiwan) or Russia, would be that much greater.

And these prices paid for maintaining current alliance policies would be all the more unacceptable because they are now completely unnecessary – because of the allies’ capabilities, and because so many of the European countries now under this U.S. “nuclear umbrella” are so thoroughly marginal to America’s safety and prosperity.

The globalist supporters of these alliances insist that these risks are indeed acceptable largely because deterrence has made them so remote. That sounds ominously like the optimism expressed by so many Americans (myself included) the day(s) before the Wuhan Virus threat’s scale became all too real. Now it’s increasingly clear that the globalists’ favored policies of indiscriminate free trade and offshoring-happy globalization policies have gravely endangered the nation’s health security as well as its prosperity, at least in the near-term. Let’s not be needlessly blindsided by a calamity triggered by the globalists’ hidebound alliance policies.

(What’s Left of) Our Economy: A Winning Trade War Message from the Last Pre-China Virus Manufacturing Figures

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aerospace, aircraft, Boeing, China, China virus, coronavirus, inflation-adjusted output, manufacturing, manufacturing production, metals, supply chains, tariffs, Trade, trade wars, {What's Left of) Our Economy

The new Federal Reserve industrial production figures are now out, and although they only bring the story up through February, they contain two vital messages: First, taking into account ongoing safety problems with aerospace giant Boeing (and its vast domestic supply chain), they’re very solid – and reinforce the case that the pre-China Virus manufacturing and overall U.S. economies were faring well despite widespread slowdown fears. Second, they also show that, despite the equally widespread tariff alarmism being mongered throughout the Trump years, domestic manufacturing wound up handling the so-called trade wars just fine.

According to the Fed, inflation-adjusted manufacturing output increased by 0.12 percent month-to-month and remained down on a year-on-year basis (by 0.18 percent). January’s monthly constant dollar production dip was revised down from 0.09 percent to 0.23 percent. Yet this real output is up on net by 1.33 percent since its last low point (last October) and by 0.36 percent since the first full month of significant Trump tariffs (April, 2018).

At the same time, these production levels remain 1.28 percent below those of manufacturing’s last peak – in December, 2018. So these are by no means salad days for domestic industry.

Take a look, however, at the main Boeing-related figures. Aircraft production and parts sank by 5.12 percent sequentially in February. It reached its lowest level since October, 2011 and this drop followed January’s 11.36 percent monthly nosedive.

Moreover, although impossible from the Fed figures to quantify precisely, the production halt of Boeing’s popular 737 Max model that began in January is clearly dragging down output in sectors ranging from metals to industrial machinery to plastics to electronics and instruments.

The rapid recent spread of the coronavirus throughout the United States will start generating very different and much worse manufacturing production and other data going forward. But these latest data show domestic industry’s performance even as tariffs on literally hundreds of billions of dollars worth of tariff on Chinese and metals inputs used by manufacturers remained firmly in place. And if that doesn’t signal loud and clear that both American producers and consumers were withstanding the Trump trade wars – a New Normal that’s likely to survive the passing of COVID 19 – quite nicely, and in fact that the entire economy had been winning it, what could?

(What’s Left of) Our Economy: When Washington Slept on America’s Dangerous Dependency on Foreign Healthcare Products

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active pharmaceutical ingredients, Bureau of Industry and Security, China, China virus, Commerce Department, coronavirus, COVID 19, globalization, health security, healthcare, India, medical devices, national security, Office of Technology Evaluation, offshoring, pharmaceuticals, supply chains, surgical equipment, Trade, {What's Left of) Our Economy

Last week I wrote that no one in American politics, in either party, deserves blame for failing to anticipate the China Virus outbreak (in the sense of being ready for a genuine pandemic), and especially the Trump administration’s flawed response to its spread within the United States (as opposed to its timely decision on January 31 to start curbing inbound travel from overseas – initially from China). 

But there’s one big aspect of coronavirus-related public policy where potentially calamitous and avoidable mistakes have been made, and where identifying responsibility is essential (largely to prevent repetition). That’s the growth of America’s dependence on pharmaceuticals, their active ingredients, and other healthcare-related goods from foreign sources, especially from China.

It should have been obvious long before the virus broke out in Wuhan (at least as far as we know) that health security is national security, and that the blithe approval of trade and related policies that encouraged the offshoring of production in this crucial sector was as dangerous as the offshoring of crucial defense and defense-related (because so many inputs to weapons and platforms aren’t weapons themselves) products. Even louder alarm bells should have sounded once it became clear that a leading offshoring destination was China – a dictatorship that has challenged U.S. national security interests long before the rise of current leader Xi Jinping, and whose role in medical supply chains inevitably created the threat of supply cutoffs (as has recently been threatened in the Chinese government-controlled press).

And indeed American policymakers had all the evidence they needed as early as 2011. That’s when a small office at the Commerce Department called the Bureau of Industry and Security (BIS) issued a report called – yup – “Reliance on Foreign Sourcing in the Healthcare and Pubic Health (HPH) Sector: Pharmaceuticals, Medical Devices, and Surgical Equipment.”

For many years, BIS’ Office of Technology Evaluation (OTE) has been issuing reports on sectors of the U.S. defense industry and other portions of the economy critical to the nation’s security and their use of foreign parts, components, materials, and other inputs whose availability shouldn’t be taken for granted. And fortunately, the Office and the various acts of Congress that have defined its mission have long understood that, as suggested above, national security-related industries are by no means restricted to those that turn out products that go bang and boom.

Notably, the study was requested by the Obama administration’s Department of Homeland Security (DHS), which shows commendable foresight. And the main results make jaw-dropping reading today:

>“There is a significant amount of U.S.-based manufacturing for critical healthcare-related commodities.” At the same time, “There is…a very high degree of foreign sourcing and dependency for components, materials, and finished products.”

>“Exposure to supply disruptions is widespread, but many respondents consider it a cost of doing business in the healthcare industry.”

>As a result, “Only 34 percent of respondents are taking steps to reduce their exposure to foreign sourcing and dependency issues.”

>When it comes to the chemical ingredients for drugs, where heavy China dependency has attracted so much attention today, in 2011, pharmaceutical companies reported “difficulty limiting their exposure to foreign dependencies primarily because most of the APIs [active pharmaceutical ingredients] are produced outside the United States.”

>Medical device producers stated that they were “vulnerable primarily due to their reliance on other countries for electronic parts.” Japan was the main concern, due at least in part to the earthquake that year that disrupted many industries’ supply chains. But China has become an even more important supplier since then.

Sadly, however, the record also demonstrates that once the findings came in, no serious follow-through was undertaken.

OTE surveyed 161 companies – 70 pharmaceutical producers, 75 manufacturers of medical devices and surgical equipment, and 16 companies that turned out both kinds of products. Roughly three fourths of these companies were headquartered in the United States and roughly one-fourth were foreign owned.

All told, these firms produced 868 individual pharmaceuticals and 833 kinds of medical devices or surgical equipment. Of these, in turn, 290 pharmaceuticals and 128 types of devices and equipment were deemed by OTE “critical to effective healthcare services in the United States,” meaning “needed in various emergency scenarios.” The bureau also looked into the chemical ingredients and parts and components comprising these products.

As for the specific information sought, here it is:

“Survey respondents were asked to identify the pharmaceuticals and medical devices/surgical equipment they manufactured, integrated/assembled, and/or sold for use in the United States. For each product area selected, companies were then asked to provide the top three company proprietary products they make and the location of manufacture. Finally, companies identified, to the best of their knowledge, whether they were the sole U.S.-based manufacturer, sole global manufacturer, or not the sole manufacturer of each product.”

Some of the above results in greater detail:

More than 73 percent of the total surveyed companies depended on suppliers located abroad for at least one critical component, manufacturing material, or actual finished good. And the average number of such foreign-sourced goods per company surveyed was 11.4. Seventy-nine percent of pharmaceutical firms surveyed reported themselves in this situation versus 63.7 percent of the device and equipment manufacturers, and the average number of foreign-sourced products was 11.4 for the drug companies versus 9.8 for their device and equipment manufacturers.

Interestingly, even at this point, China loomed pretty large large in the picture at that time – especially for medical devices and surgical equipment. Its entities represented 13.8 percent of the total number of foreign suppliers to U.S.-based producers. For pharmaceutical companies, they accounted for 9.1 percent – less than leader Italy (15.7 percent), India (12.8 percent), and Germany (10.6 percent). Not that this result should be especially comforting, as India – a major global producer of generic drugs – has recently announced to restrict exports because it’s experiencing difficulty getting chemicals from China and (surprise?) wants to make sure it can provide for its own population.

The OTE survey, in other words, found that, in 2011, healthcare products companies operating in the United States relied on a diverse global supply chain. But significant vulnerabilities were reported, too. Principally, for pharmaceuticals, “there was no U.S.-based source for at least 65.5 percent of [total goods] identified by survey respondents.” And for medical devices and surgical equipment, the figure was at least 60.5 percent. More troublingly, in the device and equipment sectors, the greatest dependencies tended to be in complex products.

Moreover, when thinking about the safety of imported healthcare goods, keep in mind BIS’ finding that only 60.3 percent of the companies in total could identify the suppliers of their suppliers.

Nor were significant supply disruptions unknown by healthcare products companies. Thirty percent of these businesses reported experiencing at least one of these events between 2007 and 2010, 40 percent of these came from foreign suppliers, and 17.5 percent came from China – the biggest share for any single country. Both domestic- and foreign-origin disruptions lasted an average of 155 days. Nonetheless, these figures are surely way too low, as only 18.3 percent of responding companies said they tracked foreign supply disruptions.

Even so, the study oddly found that “Only 16.6 percent of companies foresee a risk of supply disruptions from outside of the United States” but that 29 percent “believed their company was vulnerable to serious and/or prolonged supply chain disruptions from events or dependencies outside the United States.” For pharmaceuticals, the top concern again was lack of API availability domestically.”

OTE made several policy recommendations to strengthen America’s health security. For example, various major relevant federal agencies should “further examine [the] survey data to prioritize the foreign sourcing and dependencies that could have the greatest impact on the healthcare supply chain in an emergency situation.”

In addition, these agencies, “in coordination with DHS and the Department of Commerce, should assess whether the use of Defense Production Act authorities, such as the Defense Priorities and Allocations System (DPAS), could provide the ability to rapidly expand or surge capacity of U.S.-based pharmaceutical and medical device/surgical equipment facilities to meet demand in an emergency situation.” As made clear, however, by the continued sky-high levels of the healthcare industry’s China and other foreign dependencies, the problem was promptly ignored.  

Such measures, along with many others in the trade, tax, and regulatory fields will no doubt be crucial to rebuilding the kind of domestic healthcare industry so many Americans and even their leaders finally recognize is essential. But if the nation really is seriously behind the idea that health security is national security, it’s going to need updated detailed information on foreign dependencies. In other words, time to put the OTE to work again.

Im-Politic: In Case You Still Doubt It’s a China Virus

Tags

China, China virus, coronavirus, COVID 19, decoupling, elites, globlalism, Hong Kong, Im-Politic, Iran, Italy, pandemics, Taiwan, The Epoch Times, Trump

Yesterday’s RealityChek post explained why Americans looking for current domestic scapegoats for the sluggish China Virus outbreak response are barking up the wrong tree. But despite the predictable criticisms from globalism- and political correctness-happy elites and the Mainstream Media journalists who follow their cues, the search for foreign scapegoats is absolutely legitimate – primarily because one country above all has unmistakably earned the title: China.

Skeptical? Then check out this editorial from The Epoch Times. As it compellingly demonstrates, “Where Ties With Communist China Are Close, the Coronavirus Follows.”

More specifically, although the editorial writers note that numerous drivers lie behind COVID19’s spread, “the heaviest-hit regions outside China all share a common thread: close or lucrative relations with the communist regime in Beijing.”

One reason I found the editorial especially important was its explanation for the virus’ concentration in Italy. Some convincing explanations for high levels of Italian mortality rates have come out, but I’ve yet to run across any material on why China Virus became so common in Italy to begin with. The Epoch Times spotlights some major reasons:

“Italy, the most heavily affected country outside China as of March 10, was the first (and only) G-7 [“Group of 7” – an official organization of the world’s seven biggest economies] nation to sign onto the PRC’s Belt and Road Initiative (BRI, also known as One Belt, One Road). In an attempt to prop up its weakening economy, Italy has also sought to capture the Chinese market for selling its luxury goods….

“Italy also has signed scores of sister-city agreements with China, with the cities of Milan, Venice, and Bergamo included among them. These are the areas hardest-hit by the virus.”

China ties also seem largely responsible for the coronavirus’ outsize impact on Iran:

“The Iranian regime has had a comprehensive strategic partnership with China since 2016, and its ties with Beijing began years before that. In violation of international sanctions, Iran has imported embargoed materials from China, while continuing to sell oil to the PRC. The Islamic Republic allowed flights in and out of four major Chinese cities until the end of February.”

And reinforcing the case for a vital Iran-China connection is this Wall Street Journal piece. It reports that the Iranian city of Qom, which Iran’s government calls the country’s COVID19 starting point, has been the site of numerous infrastructure projects built by Chinese engineers and technicians as part of that Belt and Road program.

As the Times notes, even South Korea’s government – whose comprehensive and seemingly testing program has garnered widespread global praise – seems to have set itself up for China Virus troubles “for refusing to ban Chinese tourists at large and instead only barring entry for those who recently traveled to Hubei Province, the epicenter of the epidemic in China.”

Don’t forget, moreover, that one big reason surely has concerned South Korea’s long surging economic relations with China – which assembles lots of high-value manufactured goods containing numerous South Korean parts and components. The same goes for Japan, another coronavirus hotspot.

The Epoch Times‘ conclusion is also borne out by the experiences of two other places with extensive economic relations with China that seem to have the disease contained: Hong Kong and Taiwan. (And I don’t mean to suggest that the latter isn’t a “country.”)

The city, located right next to another China Virus epicenter, Guangdong Province, has basically shut its border with the People’s Republic. Taiwan “began to board planes and assess passengers on Dec. 31, 2019, after Wuhan authorities first confirmed the outbreak. In early February, Taiwan banned entry to foreign nationals who have traveled to the PRC.”

Of course, now that the virus has spread far beyond China, government authorities need to focus on more domestically focused strategies – although plugging remaining foreign travel gaps, as President Trump approved in his otherwise unsuccessful Wednesday night Oval Office address, can certainly be justified in many circumstances.

Moreover, China’s primo role in not only the coronavirus outbreak but the previous Bird Flu and ongoing Asian Swine Flu episodes indicates that there’s something about China that makes it particularly (if not uniquely) plague-prone. As a result, further curbs on commerce with the PRC seem imperative even leaving aside (as no one should) Beijing’s recent threat to cut off shipments of vital medicines and their chemical ingredients to the United States. In other words, keeping the focus on China’s responsibility will help American leaders keep and intensify their focus on desirable, broader economic decoupling.

And China’s disgraceful effort to place blame for the virus on the United States amounts to a major additional reason to spotlight the above transnational coronavirus links.

“Blame games” in politics and policy are often condemned, and surely they’re often wrongheaded or overdone. But they also serve the valuable purpose of clarifying thought, accurately identifying problems, and – as suggested above – speeding the discovery of effective solutions. That’s why The Epoch Times editorial gives me more reason than ever to keep calling the coronavirus the China Virus – and why the same should go for all Americans.    

Im-Politic: No U.S. Politicians Own China Virus Bragging Rights (& That’s Not a Scandal)

Tags

Biden, budgets, CDC, Centers for Disease Control and Prevention, China, China virus, coronavirus, Democrats, election 2020, health security, Im-Politic, Joe Biden, public health, Trump

Since the coronavirus’ serious threat to Americans’ health and their economy became clear, a blizzard of charges has accused President Trump of being caught flat-footed by the pandemic. I agree that the President didn’t expect a dangerous plague to break out overseas and swiftly cross America’s borders. I’ve also written that Mr. Trump made a big mistake in cutting funding for the Centers for Disease Control and Prevention (CDC) – but mainly for political reasons. For the amounts of money involved are so small that they couldn’t possibly even move the needle in terms of reining in federal spending and cutting deficits.

In fact, given the tiny sums, the picture looks pretty good when it comes to the latest Trump budget request for the CDC programs that actually deal with coronavirus-type threats. Check out the line items for “Emerging Infectious Diseases” and “Global Disease Detection and Other Programs.” The former is down only marginally from actual spending levels previously agreed to by Congress (including of course its Democrats) and the latter is up significantly.

But more important, the allegations seem to assume that the American political system has been chock full of leaders who can boast the foresight the President lacked, and that the nation’s response would have been much more effective had one of them occupied the Oval Office. Is there any actual evidence for this proposition?

One crucial test is whether well before the virus became front-page news any of the leading recent and current Democratic candidates for President rolled out plans for beefing up American capabilities to respond to pandemics before the virus’ breakout in China. And do you know how many did? None – with the possible exception of former New York City Mayor and media magnate Michael Bloomberg.

That’s based on checking the polcy sections of the websites of former Vice President Joe Biden, Vermont Senator Bernie Sanders, and drop-out Massachusetts Senator Elizabeth Warren. Drop-outs Minnesota Senator Amy Klobuchar and South Bend, Indiana Mayor Pete Buttigieg have taken all the content down from their sites.  But a wide-ranging media survey of their positions reveals no attention paid to pandemics, either.

I describe drop-out Bloomberg as a possible exception because his site did Mr. Trump’s “erratic leadership, go-it-alone approach, and distrust of science” for putting the country “in a vulnerable position should a major public health emergency, such as the novel coronavirus…materialize.” And he outlined what can fairly be called a plan.

Yet it’s not clear when these Bloomberg proposals were unveiled, and there’s no evidence that he was thinking about such matters before COVID 19’s appearance.

The same goes for Warren and Klobuchar, whose plans only dated from late January. Biden published an op-ed detailing his own ideas at about the same time. (See this post for links.)

I don’t believe that any of these politicians (including those with long years of public service) deserve any blame for failing to anticipate the virus threat on a timely basis – and for the same fundamental reason I don’t believe Mr. Trump should be pilloried. Because this kind of pandemic (coming from a country with extensive ties with the U.S. and global economies, like China, as opposed to regions like Central and West Africa, with almost no such ties) really couldn’t be anticipated adequately.

And incidentally, this point is also relevant to the charge made by Biden and others that the President not only cut the budget for the CDC, but for the country’s foreign aid agency, and also dismantled the White House global health security team created during the Obama years.

But anyone honestly believing that a little office somewhere in the Executive Office of the President would have made a meaningful difference in preventing or fighting the virus is guilty of drinking the policy wonk kool-aid claiming that augmenting bureaucratic flow-charts in any way amounts to solving problems – even those that emerge suddenly. As for the foreign aid cuts, the U.S. Agency for International Development (USAID) has been working on helping prevent the spread of infectious diseases like the coronavirus, but Beijing made clear early on that American government help wasn’t wanted. (Nor was World Health Organization help.)

In other words, life is full of unpleasant surprises and shocks, and from time to time they’re big. Human beings don’t come with perfectly functioning crystal balls in their heads, and learning curves are rarely as steep as we’d like because lessons from experience and history tend to be excruciatingly difficult to draw. Hindsight can be superb, but says nothing about clairvoyance. Governments, moreover, although indispensable in such situations, are often not the most efficient actors, and in crises, they’re often forced to scramble.

That’s not to say that the President may not pay a political price for his coronavirus record, or that Americans don’t have a right to be frustrated with his actions to date, much less that he deserves reelection on any grounds. Indeed,  here’s a great suggestion for the kind of speech Mr. Trump should have made by now, and still should make – which urges him to use the virus crisis as an opportunity both to stimulate the economy and prepare better for future pandemics with major spending and other measures to bolster national health security.

But it is is to warn that none of President Trump’s critics or challengers can legitimately claim to have done better, let alone that they’ll act more effectively when the next black swan – biological or not -flies into our lives.

Im-Politic: The China/Biden Opportunity Sanders Needs to Seize

Tags

Bernie Sanders, China, China virus, coronavirus, Democrats, drugs, election 2020, health security, Im-Politic, Jobs, Joe Biden, manufacturing, Michigan primary, pharmaceuticals, technology, Trade, World Trade Organization, WTO

Since he emerged as a major rival to Hillary Clinton for the 2016 Democratic presidential nomination, Vermont Senator Bernie Sanders has been criticized for lacking a killer instinct. Specifically, he’s generally declined to attack his competitors as harshly as many supporters and supposed political pros would like. (The articles here and here nicely frame the history.)  

I don’t feel qualified to weigh in on this debate, but with a crucial primary coming up in Michigan tomorrow, it’s clear to me that the progressive standard-bearer could use more of a killer instinct on a big policy issue: former Vice President Joe Biden’s record on China issues.

Sanders has decided to assail Biden on his overall trade record, which makes sense considering the latter’s support for the kind of trade deals and policy decisions (like NAFTA, the North American Free Trade Agreement, and the rush to expand commerce of all kinds with China) that have hammered workers in manufacturing-heavy states like Michigan. 

But his focus is far too narrow, especially considering developments over the last few years and particularly the last few months. For the Democratic Socialist is solely emphasizing the job and wages loss resulting from agreements like the Biden-endorsed deal that supported China’s entry into the World Trade Organization (WTO) in 2001 – which granted Beijing vital legal protection against unilateral American efforts to fight its protectionism and other forms of economic predation. That mattered greatly because many of these Chinese transgressions persisted post-WTO and by all accounts have worsened under the regime of Xi Jinping.

It’s now clear, however, that the China threat is even worse because it’s far broader; that Biden as long-time Senator from Delaware in particular flunked those non-economic policy tests, too; and that the biggest arguably was the WTO vote. So despite signs from polls that Americans generally (though not necessarily in manufacturing centers) aren’t as opposed to pre-Trump trade policies as in the past, the same surveys make clear that all manner of China-related concerns are mounting, and that therefore hitting Biden for supporting measures that have clearly increased Beijing’s wealth, power, and consequent capacities to threaten key U.S. interests in many fields would succeed roaringly.

Indeed, Biden’s stated justification in 2000 for favoring the crucial WTO decision looks especially and dangerously loopy nearly two decades later, when a Chinese cover-up helped the coronavirus become a serious threat to the United States and the rest of the world at large, when American leaders have finally become aware of how the industrial offshoring accelerated by the WTO move has made the nation shockingly dependent on healthcare products from China, and when the PRC’s official press has just published an article all but threatening to plunge the United States into coronavirus hell by blocking the export of the drugs and their chemical ingredients needed to fight the pandemic.

For in 2000, Biden made clear that he mainly supported China’s entry into the trade body – and ending the policy of granting Beijing tariff breaks only on an annual basis and only if its repressive human rights practices improved – in the belief that this new approach would both promote political and economic freedom in China and help “encourage” its “development as a productive, responsible member of the world community.”

Moreover, Biden not only guzzled the kool-aid of claims that WTO entry would foster greater political as well as economic freedoms in China. He argued that such change was exactly what most of China’s leaders intended. These dictators, he argued,

“have consciously undertaken–for their own reasons, not ours–a fundamental transformation of the communist system that so long condemned their great people to isolation, poverty, and misery. They have been forced to acknowledge the failure of communism, and have conceded the irrefutable superiority of an open market economy.”

Biden was right in noting that economic reforms already by then undertaken had greatly improved living standards for enormous numbers of Chinese. But he was completely wrong in believing that “this growing prosperity” would start bringing more democratic reform and a move toward genuinely open markets. Nor did he foresee that because China’s economic progress depended on amassing ever greater trade surpluses in ever more sophisticated products – and especially with the United States, the world’s biggest, most lucrative market – much of the rise in Chinese living standards would come at the expense of American domestic manufacturing and its workforce.

In fact, Biden explicitly scoffed at fears that WTO entry would bring about “the collapse of the American manufacturing economy, as China, a nation with the impact on the world economy about the size of the Netherlands, suddenly becomes our major economic competitor.”

But in light of China’s growing international belligerence particularly under Xi Jinping, it’s disturbing that the then-Senator – supposedly a foreign policy expert – was equally blind to the likelihood that a WTO-fostered “emergence of a prosperous, independent, China on the world stage” would enable China to flout “international norms in the areas of trade, security, and human rights” whenever it chose, rather than strengthen China’s loyalty to that “liberal global order.” 

Sanders and other critics of the WTO decision rightly derided all of these declared convictions. But I’ve yet to hear him spotlight the dangers to America’s global technology leadership and therefore national security (including health security) generated and continually worsened by the richer, stronger China made possible by the policies supported by Biden and the rest of the bipartisan globalist establishment that ran Washington, D.C. – and U.S. China policy – before Donald Trump’s election as President. P.S. A China that achieved its strategic goals could decimate American living standards still further.

This presidential campaign has already featured so many ups and downs, and so many front-runners who have risen and fallen, that Michigan probably won’t be  Sanders’ last chance to mount a broad-brush attack on Biden’s atrocious China record. (Just FYI, as of this afternoon, the polls show Sanders getting thumped.) The continuing coronavirus fallout could create further opportunities for him as well.

What is clear, however, and to large, growing numbers of Americans, is that enabling the rise of China ranks as one of the most potentially calamitous mistakes in American history.  And the sooner Sanders starts exploiting Biden’s role in enabling it (which continued during the do-nothing Obama administration), the better.     

(What’s Left of) Our Economy: Score Another Victory for Trump’s Tariffs – on Metals

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aluminum, Bob Tita, China, metals, overcapacity, steel, tariffs, The Wall Street Journal, Trump, World Steel Association, {What's Left of) Our Economy

Wall Street Journal manufacturing reporter Bob Tita, who knows his stuff, more than earned his paycheck with a new story on how all the coronavirus-related disruption to the global economy is worsening a chronic global glut of key metals – especially steel – that’s likely to keep ballooning thanks to continued over-production from glutter-in-chief China.

Especially alarming seems to be this Tita finding: As the PRC’s economy and manufacturing sector have slowed markedly due to the outbreak, and reduced demand for metals,

“many of the country’s steel mills and aluminum smelters have continued to operate because stopping and starting equipment handling molten metal is expensive and risky. Millions of tons of steel and aluminum produced during what is now the worst manufacturing slump on record in China have created a surplus of metal that will take months to shrink, even if the epidemic is contained and demand recovers later this year in China and beyond.

“As a result, the global stockpile of steel and aluminum threatens to push down prices and put new pressure on producers in the U.S., Western Europe and elsewhere. Many of those companies were already struggling to earn a profit on steel and aluminum because of lower prices and weakening demand from manufacturers.”

Indeed, he quotes a U.S. scrap steel broker as fearing that “We could see China swamp the entire world with steel.”

Yet Tita – and the broker – seem to be missing something crucial about the steel glut’s recent past, present, and likely future: The situation then, now, and going forward would’ve been much worse if not for the global nature of President Trump’s steel tariffs. And the latest global output data from the World Steel Association have just proven this point yet again.

When first imposed, in March, 2018, the levies were blasted as catastrophic mistakes by globalist and free trade conventional wisdom-mongers in politics, the Mainstream Media, big metals-using industries, and their hired guns in the think tank world. Yes, they acknowledged, China has been guilty of dumping its bloated steel (and aluminum) output overseas at artificially low prices, thereby exporting not only metals but a metals recession and unemployment around the world. But the United States was an exception, because of steel tariffs already imposed under the Obama administration.

The new U.S. duties were hitting America’s trade partners indiscriminately, including supposedly loyal allies in Europe and East Asia (along with Mexico and Canada). What could be dumber or more short-sighted – especially since these countries had joined with the United States to start putting multilateral pressure on China to cease and desist?

But as RealityChek regulars know, none of these complaints held even a drop of water. For the rest of the world was likely to continue responding to the metals flood from China the way it always had – by ramping up their own exports to the United States, and/or putting the Chinese metals inundating their own markets into new boxes with their own labels and sending them state-side – a practice known as transshipping (and involves committing customs fraud).

Moreover, after achieving exactly nothing since it was created in September, 2016, the multilateral steel talks seem doomed because China has decided it’s had it even with pretending to be interested in cutting its capacity meaningfully.

Yet thanks to the global scope of the Trump tariffs, the U.S. economy is no longer serving as the world’s steel buyer of last resort – and manufacturing punching bag. I first documented their effectiveness in this May, 2019 op-ed. And I’m pleased to report that as of January, 2020, the World Steel Association’s figures show that they’re still working exactly as intended.

The Association tracks output for 64 countries that comprise the vast bulk of global production. And its new figures show that on a January-January basis, China’s steel production rose in tonnage terms by 7.2 percent. That’s considerably faster than world production growth of 2.1 percent.

But the American industry expanded output by more than the global industry, too – by 2.5 percent. And much of this relative improvement stemmed from the poor production performances of other regions and countries that traditionally viewed the United States as the world’s big steel dumping ground. For example, during this year-long stretch, steel tonnage production in Japan rose by only 1.3 percent. For South Korea and Taiwan, it actually fell – by eight percent and 14.6 percent, respectively. And overall European Union production sank by twelve percent.

This success contrasts sharply with the pre-tariffs situation, when the United States was clearly the world’s biggest steel production loser as the result of gluts not only in China but created by many other economies.  

At the same time, the battle to safeguard American domestic metals producers hasn’t been won once and for all. As Tita notes, although “Tariffs have made many types of metal made in China uncompetitive in the U.S.,” China’s still “large steel-and-aluminum output drives up supply and weighs on prices around the world. Excess metal in China could create more competition for U.S. steel exports or enter the U.S. indirectly as imports from Canada and Mexico” – where the American levies have been lifted in connection with the signing of the new U.S.-Mexico-Canada trade agreement (USMCA), the follow-on to the North American Free Trade agreement (NAFTA).

But the new U.S. and global production numbers also show indisputably that Mr. Trump was right and his critics wrong about his sweeping approach to the metals tariffs. Just don’t expect any of the critics to admit it.