Our So-Called Foreign Policy: Will a Russian Victory Really Bring On a World at War?

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Antony J. Blinken, Biden, China, Council on Foreign Relations, East China Sea, globalism, Japan, Kim Jong Un, national interests, North Korea, Our So-Called Foreign Policy, Russia, South China Sea, South Korea, Taiwan, The Wall Street Journal, Ukraine, Ukraine-Russia war, Vladimir Putin, war, Xi JInPing

Not only do American leaders seem pretty united on the need for the nation to do much more to help Ukraine defend itself from Russian invaders. They and the (overwhelmingly globalist) American political and chattering classes seem largely in agreement on one of the main consequences either of permitting Russia to win, or permitting him to win without inflicting major, lasting damage on Russia’s economy – a return to a world in which aggressive dictators like Russia’s Vladimir Putin will feel much freer than they have for decades to attack their neighbors.

That fear definitely has a troubling ring of reasonableness – and all the more so since, unlike previous historical eras in which such attacks and invasions were much more common, some of the actors possess nuclear weapons.

But there’s something these warnings are overlooking. However vivid such dangers are in principle, it’s hard to identify actual places around the world where potential conquerors have been bidng their time until receiving just the kind of signal that a Russian success in Ukraine allegedly would send.

If you doubt the prominence of this argument for greater U.S. involvement in the conflict, you haven’t been paying attention. For example, in his first public remarks after the invasion, President Biden claimed that “Putin’s actions betray his sinister vision for the future of our world — one where nations take what they want by force.”

In a speech a month earlier, his Secretary of State, Antony J. Blinken, asserted that one of the post-World War II global order’s guiding principles was a rejection of

“the right of one country to change the borders of another by force; to dictate to another the policies it pursues or the choices it makes, including with whom to associate; or to exert a sphere of influence that would subjugate sovereign neighbors to its will.

“To allow Russia to violate those principles with impunity would…send a message to others around the world that these principles are expendable, and that, too, would have catastrophic results.”

The conservatives on the Wall Street Journal editorial board, who don’t agree with the Biden administration on much of anything, similarly contended that “Whether the West admits it or not, the invasion is setting a precedent for what the world will tolerate in the 21st century.”

But check out this assessment of worldwide hot spots from the Council on Foreign Relations, often called the seat of America’s globalist foreign policy establishment. Where exactly are the Putins of tomorrow whose will to international power would be even be sharpened by a Russian victory in Ukraine?

Certainly not on the Korean peninsula or in the East China Sea. North Korea no doubt has designs on neighboring South Korea, but they’ve existed for decades. Ditto for China and Taiwan. It’s true that Kim Jong Un and Xi Jinping might be emboldened by an inadequate U.S. and international response to Putin’s war. But not from any relief that global norms of behavior that had been holding them back had weakened, or that a Russian victory had set some a kind of precedent – with binding power? Because they take the idea of rule of law more seriously in their treatment of foreigners than they do in their treatment of their own people? Please.

Other than these Asian conflicts – which also include China’s expansionism in the South China Sea, but which also long predate the Ukraine war – where are the aggressors-in-waiting who may feel freer to attack their neighbors? Should we include the other East China Sea dispute, where China is involved, too – even though U.S. allies Japan and South Korea are also contesting each other’s claims to some miniscule islands?

More important, where are the global hot spots where current or potential territorial rivalries could explode into conflict that would imperil global peace and security – including America’s? Nagorno-Karabakh (on the border of Armenia and Azerbaijan, unless you’ve been following this tiff closely)? As Mr. Biden would say, “Come on, man.”

I’m sure that there are flashpoints in sub-Saharan Africa that could eventually embroil entire regions in warfare. But it’s as cold-blooded as it is true that these are regions so chronically dysfunctional (and therefore largely disconnected from the wider world) that even complete chaos has no potential to spread much further – or inspire conqueror wannabees in regions of greater concern.

Closer to home for the United States, according to the Congressionally founded U.S. Institute of Peace, some small countries in Latin America have been quarreling with neighbors over territory since 1990, and if they did ignite conflict, refugees would of course come streaming to U.S. borders. But only once – in 1995 – did one of these feuds result in war (between Ecuador and Peru). And I’m glad I don’t have to make the argument that revanchists in either country are chomping at the bit to get a symbolic green light from a Russian victory in Ukraine.

The big takeaways here clearly are (1) that the world isn’t a tinderbox likely to burst into a series of truly dangerous international conflicts depending on the outcome of Russia’s war on Ukraine; and (2) that the potential conflicts that can affect the United States consequentially are and have long been driven by their own dynamics (including current and longstanding American approaches to these situations).

So as has been the case since Russian policy toward its neighbors became more belligerent, what should be driving the U.S. response should be examinations concerning the nature of concrete, specific U.S. interests that are or are not at stake. Claims that Ukraine’s continued independence and full sovereignty are all that stand between today’s relative calm among countries (if not in terms of civil conflicts) and an entire globe engulfed in war deserve the same fate as previous alarmist concotions like the domino theory – getting tossed onto what former President Reagan memorably called the “ash heap of history.”

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Our So-Called Foreign Policy: Globalists Keep Rejecting Key Tenets of Globalism

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America First, Biden, Council on Foreign Relations, Donald Trump, foreign policy establishment, globalism, international institutions, Our So-Called Foreign Policy, Richard N. Haass

As well known by RealityChek regulars, there’s not much I enjoy more professionally speaking than finding figures with whom I normally strongly disagree on key economic and foreign policy issues unwittingly agreeing with me on the concepts at the heart of these disagreements. (See, e.g., here and here.)

So imagine how pleased I was to see this paragraph in a recent opinion column by Richard N. Haass – a foreign policy establishmentarian if ever there was one, and therefore a leading advocate of the globalist approach to world affairs that I and Donald Trump (in his typically ragged way) believe has been needlessly and indeed recklessly risky and costly for Americans:

“The US will…encounter difficulty in realizing its goal of organizing the world to meet global challenges, from infectious disease and climate change to nuclear proliferation and conduct in cyberspace. There is no consensus and no international community, and the US can neither compel others to act as it wants nor succeed on its own.”

It’s a statement that’s noteworthy not only because it recognizes the fatal flaw of one of globalism’s central pillars – fetishizing international cooperation and therefore striving to systematize and formalize such multilateralism by building strong global institutions. For the point being made by Haass – a former official in the pre-Trump Republican presidencies and now President of the Council on Foreign Relations, often described as the foreign policy establishment’s epicenter – is that creating organizations can’t be equated with solving even problems shared by the entire world because – across the board – so many different countries disagree on the best solutions.

It’s also statement that’s noteworthy because Haass had previously called the rejection of multilateralism and its constituent institutions a defining and especially wrongheaded feature of Trump’s America First-ism. Withdrawal from such arrangements, Haass wrote just last May, has been

“central to the Trump presidency. He has pulled the country out of every manner of multilateral agreement and institution overseas in the name of going it alone. Going it alone, though, makes little sense in a world increasingly defined by global challenges that can best be met through collective, not individual, action.”

But Haass’ new about-face is consequential as welI because it’s essence’ is identical with my own previously stated (anti-globalist) view that

“Precisely because…domestic [political] systems are characterized by a common acceptance of legitimate authority, and by a broader sense of mutual obligation, a true [foreign policy] realist would never disagree that their possibilities for ‘trust, cooperation and growth’ are often encouraging. It is precisely because the international system possesses none of these features that realists’ expectations of achieving such advances abroad are so low.”

P.S. I wrote the above in 2002.

Unfortunately, Haass’ latest makes painfully clear that he has no useful policy advice for President Biden – another multilateralism and international institution fan boy – in a world in which their foreign policy lodestars have become so useless (and in my view have never been essential). I’ve written that recognizing the shortcomings and limitations of international institutions doesn’t require simply abandoning them.

Instead, because cooperation inevitably sometimes be worth seeking, it means recognizing the hard-ball politicking typically needed to prevail; and amassing the power (in all dimensions) needed both to succeed, and to survive and prosper through America’s own devices if others prove recalcitrant. 

In fact, the virtues of this foreign policy strategy seem so obvious that I’ve got the sneaking suspicion that a big reason they became controversial was because they were championed by Trump.  Which raises the intriguing possibility that the Biden administration could wind up adopting an America First-type foreign policy, but in the worst conceivable manner – unwittingly, and even kicking and screaming all the way.      

Our So-Called Foreign Policy: America First by Any Other Name?

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America First, Council on Foreign Relations, establishment, Foreign Affairs, globalism, internationalism, Michael Beckley, Our So-Called Foreign Policy, Trump

Here’s a blog post lede I never thought I’d write. And if you’re familiar with the ongoing but almost always blinkered way the establishment debates U.S. foreign policy, you’ll find it pretty starting, too:

An intellectually interesting article appeared in Foreign Affairs. Or maybe more accurately, an article that’s far more intellectually interesting than either its author or the magazine’s powers-that-be realized.

First, here’s why this matters. Foreign Affairs is the journal of the New York City-based Council on Foreign Relations – an organization that literally was created in the shadow of World War I by America’s then-Northeast-centric ruling classes to push the nation to abandon its domestically focused collective impulses and priorities and remain comprehensively involved in world affairs following the conflict.

The organization became so influential that in 1962, the journalist Richard Rovere published an article (which appeared in various forms, notably Esquire) arguing (in my opinion, with tongue not so firmly in cheek) that the Council and its members were pillars of a broader national establishment that not shaped decisively not only American public policy, but the definition of which viewpoints were and weren’t legitimate to air in nationally influential media. (Full disclosure: From the mid-1980s or so through the mid-1990s or so, I was a member until I decided that the dues were no longer worth the candle.)

It’s not that Foreign Affairs never runs material that challenges the orthodoxy in the field of foreign policy – which historically has been called “internationalism” and which President Trump has re-labeled “globalism.” But such articles are published so rarely that their very infrequency clearly telegraphs even to minimally perceptive readers that they’re exercises in tokenism. Another big clue along these lines – they’re given the magazine’s blessing usually only after internationalist policies lead to outright national disasters.

One leading example is this piece, which came out at the height of the Vietnam War. Much less important examples include two pieces of my own, which indicated the Council’s willingness to consider that, with the Cold War ended, America’s military reach was needlessly and dangerously exceeding its grasp; and that the standard economic theories sanctifying free trade policies weren’t all they were cracked up to be.

Yet Michael Beckley’s essay in Foreign Affairs‘ November/December issue falls into a different category altogether. It not only decimates globalism’s core tenets. It does so unwittingly. And there’s no reason to suspect that the magazine’s editors or their superiors understand its profoundly subversive implications, either.

Even more startling: the author’s main arguments closely mirror those made in this 2018 article of mine (and foreshadowed in this Atlantic Monthly piece from…wait for it…nearly 30 years ago).

My own case against globalism first and foremost challenges its assumption that the United States has become exquisitely sensitive, and indeed downright vulnerable, to virtually every disturbance of a set of global circumstances whose default position is called “order” – even though the stability of the entirety of this so-called system itself in turn is considered as fragile as a pyramid of champagne glasses.

In fact, I’ve contended, because of America’s unique combination of geographic isolation, technological prowess and therefore military power, and natural wealth, it’s substantially unaffected by most outbreaks of instability overseas.

And where globalism claims that because of this vulnerability, U.S. foreign policy must engage in a ceaseless effort to create, maintain, or restore order and stability abroad, I’ve argued that because developments within the United States (including its actual or potential foreign vulnerabilities) are far easier for Americans to control than developments without, even when foreign developments threaten to impinge on its security and prosperity, the U.S. government is best advised to respond by addressing its own weaknesses and shoring up its own defenses rather than trying to fix what’s broken overseas.

There’s definitely a paradox at work here, but a paradox that makes perfect sense to the open-minded: The United States is anything but capable through its own devices of ensuring its security and prosperity by making or keeping the world safe and stable. But it’s entirely capable of ensuring through its own devices its own security and prosperity in a world that remains unsafe and unstable.

So imagine my surprise upon reading Beckley statements like:

>”By 2040, the United States will be the only country with a large, growing market and the fiscal capacity to sustain a global military presence. Meanwhile, new technologies will reduce U.S. dependence on foreign labor and resources….”

>”Remaining the most powerful country, however, is not the same thing as remaining the guarantor of a liberal international order. Somewhat paradoxically, the same trends that will reinforce U.S. economic and military might will also make it harder to play that role—and make Trump’s approach more attractive.”

>For much of its history, “The United States could afford to pursue its goals alone because it, unlike other powerful countries, was self-sufficient. By the 1880s, the United States was the world’s richest country, largest consumer market, and leading manufacturer and energy producer, with vast natural resources and no major threats. With so much going for it at home, the United States had little interest in forging alliances abroad.”

>With the passing of the Cold War-era Soviet threat that could only be adequately contained with alliances (I disagree, but that’s a separate issue) “Americans will feel less dependent on foreign partners than they have in generations.”

>”As other major economies shrivel, the United States will become even more central to global growth and even less reliant on international commerce.”

>”The United States will also have less need for staunch allies, because rapid aging will hobble the military expansion of its great-power adversaries.”

>”The United States’ task of leading the liberal world order will grow harder as nationalists gain power and raise tariffs, close borders, and abandon international institutions.” 

One likely reason that neither Beckley nor the folks at Foreign Affairs or the Council understood the real importance of his article is that the author works so hard to paint such unattractive – and even ominous – picture of the rest of the world if the United States does pursue a go-it-alone strategy. Indeed, his portrayal of this kind of America (“rogue” and “illiberal”) isn’t exactly flattering, either.

Another likely reason for this obliviousness is that the second-best version of globalism that Beckley proposes as an alternative to the pre-Trump iteration isn’t so terribly different from traditional globalism.

It essentially entails a more explicit use of U.S. power and wealth to pressure current allies and neutrals into following U.S. leads in exchange for using its still (and increasingly formidable) military edge to protect them against China and Russia and other predators. But although, in Beckley’s words, this foreign policy approach would be “more stingy and uninspiring” than today’s globalism, to my eyes, it also looks comparably (and needlessly) ambitious, interventionist, and risky – especially if America’s relative military prowess doesn’t prove to be nearly as intimidating as the author expects, and the U.S. homeland remains exposed to the risk of nuclear attack from foreign aggressors.

Also crucial to remember – at this stage, even though Beckley’s views have been given something of a Good Housekeeping Seal of Approval by the Council, his voice remains an awfully lonely one. In particlar, there is absolutely no indication yet that anyone associated with the Biden presidential campaign remotely agrees.

At the same time, changes in national strategy rarely develop through knowing adoption of the master plans laid out by policy writers like him (or me). In fact, one of my favorite lines in non-fiction has been been the Victorian era British historian J.R. Seeleye’s contention that his countrymen “seem to have conquered and peopled half the world in a fit of absence of mind.”

I’m not saying I believe Seeleye entirely. But he usefully spotlights the crucial role played by the force of circumstance in producing national course changes. And that’s mainly why Beckley’s article genuinely deserves the descriptor “subversive.” It’s ably identified the many of the developments (including some I haven’t considered) that demonstrate the attractiveness of a genuinely America First-type foreign policy, and could well push the United States to adopt one whether he – or the still powerful globalist U.S. national establishment – likes it or not.

Im-Politic: Why the Haters are Wrong About Trump and the Coronavirus

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CDC, Centers for Disease Control and Prevention, coronavirus, Council on Foreign Relations, Im-Politic, impeachment, pandemic, public health, Senate, The New York Times, Think Global Health, Trump, WHO, World Health Organization

President Trump sure is getting slammed for his response to the coronavirus outbreak, both by the Mainstream Media, many Democratic Party politicians, and even some public health specialists. (See here and here.) Their main indictments: He’s been hopelessly behind the curve. Or has it been that he’s been too alarmist? Both charges have been made, making clear that the substance doesn’t matter much to the critics.

One allegation seems justified to me: The President’s latest (fiscal 2021) budget request included a 16 percent cut in outlays for the Centers for Disease Control, the branch of the Cabinet-level federal Department of Health and Human Services in charge of the nation’s health security. The budget document was made public eleven days after the World Health Organization declared the outbreak to be an international public health emergency, and six days after Mr. Trump promised in his State of the Union address to take “all necessary steps” to protect Americans from the disease.

But the main problem with the CDC decision, as I see it, is political. Clearly, the timing was terrible, and was bound to be jumped on by reasonable and unreasonable critics alike. Indeed, all of the President’s budget requests have sought such cuts – which also deserves criticism even though Mr. Trump eventually accepted higher funding in the final budget deals each time.

Substantively, however, it’s inconceivable that had any of the sought cuts been actually made, they would have made a discernible difference in the nation’s early-stage anti-coronavirus efforts at least. After all, how could even more money have enabled the agency to predict or identify the virus once it broke out, since it cught China itself by surprise; and since Beijing still refusedsto let U.S. officials as such into the country to aid its own efforts?

It’s true that last year, the Trump administration ended a program in the U.S. government’s foreign aid agency aimed precisely at improving the detection of corona-type viruses “with pandemic potential.” According to ABC News, the program (called PREDICT) “is credited with identifying nearly a thousand” of these maladies since its creation in 2009. Which sounds great. Except the coronavirus clearly wasn’t one of them.

But as for being slow on the coronavirus uptake (a line of attack that’s – understandably – shown more staying power than the “overreaction” claims), timelines showing milestones in the virus’ identification and spread, and principal Trump administration responses demonstrate nothing of the kind. (My main sources are the Think Global Health initiative of the Council on Foreign Relations, a leading U.S. think tank; and The New York Times.)

They remind us that the first recorded onset of symptoms, in Wuhan, China, came on December 1, that Chinese authorities first told the World Health Organization (WHO) that something was rotten in that city on December, 31, and that Beijing took its own first anti-virus action the following day – closing a seafood market thought to have been the the origin point.

On January 21, the United States confirmed finding the first domestic American case of the virus – in a man who had traveled to Wuhan. By this time, China had reported six virus-related deaths, and several hundred cases.

A day later, WHO convened its first coronavirus meeting, and ultimately decided against declaring the outbreak to be a Public Health Emergency of International Concern. On January 23 came the first Chinese travel restrictions and quarantines.

Between January 24 and 26, Washington identified four more American cases, and on the 27^th, by which time 3,000 victims around the world had contracted the disease and 60 had died, announced screening programs at domestic airports that handled 90 percent of passengers coming from China along with CDC initiatives “to identify potential cases.” In addition, a high level State Department travel advisory had been announced for Wuhan, and President Trump had spoken with Chinese leader Xi Jinping and offered assistance.

On January 28 and 29, the United States began evacuating its nationals from Wuhan – dates which are significant because it wasn’t until the following day that WHO finally decided to declare the virus an official public health emergency. On the 31^st, as The New York Times reported, the administration announced that it “would bar entry by most foreign nationals who had recently visited China and put some American travelers under a quarantine as it declared a rare public health emergency.” At the time, worldwide deaths totaled 213 and cases approached 9,800 (eleven in the United States). Also significant – these actions came a day before the first coronavirus death outside China was reported (in the Philippines).

Official U.S. actions by no means stopped then. On February 5, all Peace Corps volunteers were evacuated from China and the CDC starting sending diagnostic kits to more than one hundred laboratories in the United States. (The Food & Drug Administration authorized the tests to be conducted by the kits the day before.) Two days later, on the seventh, the administration pledged $100 million to the global coronavirus fight.

The last week of January, incidentally, was kind of interesting for another reason: President Trump was being tried in the Senate on two articles of impeachment – which themselves represented the culmination of what I’m sure we’ll all agree was a great deal of work by Democrats in the House and Senate, as well as voluminous reporting by the national media. The journalism of course, included the publication of scoops of any number of supposed bombshell revelations about the President’s misdeeds, and even though acquittal seemed certain to most, they clearly sent the President and his top aides scrambling on an ongoing basis and surely occupied a great deal of their time.

Moreover, the trial didn’t end (with the acquittal vote) until February 5 – the date that the Peace Corps volunteers were being evacuated and the CDC diagnostic kits were being issued.

I fully accept that Presidents need to be able to walk and chew gum at the same time, and that indeed, the ability to manage crises successfully, and during the worst of circumstances, is the most important qualification for the job. It’s also possible that the administration has already lost crucial time in the anti-coronavirus fight, and that consequently it will never catch up.

But the above timelines reveal to me, anyway, that the American record so far measures up well versus that of any other national government, and especially well versus that of WHO, which is supposed to be the tip of the spear here. Moreover, the Trump administration response seems all the more alert upon remembering that, as the virus was breaking out, the President was, if not literally fighting for his own life, relentlessly besieged by adversaries both inside and outside his government.  I suspect that posterity, as a result, will need to struggle to judge his initial coronavirus policy decisions as failures.

Our So-Called Foreign Policy: The Globalist Blob Wants the U.S. to Keep Looking for Trouble

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alliances, Blob, China, Council on Foreign Relations, East Asia-Pacific, extended deterrence, globalism, Japan, North Korea, nuclear weapons, Our So-Called Foreign Policy, Project-Syndicate.org, Richard N. Haass, South Korea, Taiwan, Trump

I’d like to offer a deal to anyone in America’s bipartisan globalist foreign policy establishment: You come up with defenses of the pre-Trump strategies and approaches you support that aren’t transparently ridiculous, and I’ll start portraying them as something other than sick jokes.

Judging by Richard N. Haass’ latest column for the Project Syndicate website, it’s clear that even if these members of the Blob (a wonderful nickname for this crew of former officials, genuine scholars, think tank creatures, Mainstream Media journalists, and business and finance leaders) cared about what I think, they’d flunk this test.

Haass is an especially important Blob-er because he not only served as a top policymaker under three Republican presidents (and in a more junior position during Jimmy Carter’s administration). He’s the President of the Council on Foreign Relations – the Blob’s oldest and most prominent think tank. (Truth in advertising: He also preceded me by two years at our Long Island, N.Y high school, but we had no personal dealings.)

But we should all hope that the advice he dispensed in government was much better than that he seems to have offered in “Asia’s Scary Movie.” Because his arguably underlying message – that the United States should reinforce its commitment to militarily defending the East Asia-Pacific region even though the region shows signs of fracturing on the economic and security fronts – is nothing less than a recipe for increasing America’s exposures to perils it can’t possibly control.

Especially and dangerously nutty is Haass’ clear belief that the United States should maintain its security relationships with Japan and South Korea even though the two countries are engaged in a literal trade war that’s disrupting interactions between their two gigantic clusters of information technology hardware manufacturing – which are so big that global trade and production in these critical sectors could take a major hit if the feud escalates further.

After all, as noted in that post linked just above, American ties with these two countries are “vital to its aims of balancing China and addressing the threat from North Korea” – both of which threats Haass correctly describes as growing and as worrisome as ever, respectively. In other words, in the event of trouble that may require a military response, the United States is relying on help from Tokyo and Seoul – which, in turn, are going to need to be working together.

But military relations between these two Asian countries have long been threadbare at best. Worse, their latest dispute – amid the backdrop of the rising China challenge and the ongoing peril from North Korea, which endanger both – has broken out because of grievances and grudges dating from Japan’s long and brutal occupation of the entire Korean peninsula in the decades preceding the end of World War II.

Given the history, it’s easy to understand why there’s no love lost between these two peoples. But alliances make sense only when the participants can count on each other for effective assistance if and when the shooting starts. Can anyone seriously believe that Japan and South Korea are going to get their act together suddenly if North Korean forces barrel across the Demilitarized Zone, or if Beijing moves against Taiwan? Or that responsible American defense planning should assume this rosy scenario?

Even worse, if trouble does break out on the Korean peninsula, nearly 30,000 American troops will be right in the middle. As I’ve written repeatedly, their vulnerability to superior North Korean conventional forces means that a U.S. President might need to use nuclear weapons to save them. For many years, North Korea’s inability to hit the American homeland with its own nukes made this threat (known as “extended deterrence”) credible and helped keep the peace. Given the North’s major progress toward precisely this capability, the current U.S. strategy could soon amount to risking the complete destruction of a big American city – or two. That may even be the case now.

In other words, given all these major, worsening Asia problems, the logical U.S. response is not stubbornly staying seated atop a powder keg. It’s to disengage ASAP. But any disengagement is such anathema to Haass and the rest of the Blob that he’s actually portrayed President Trump’s various statements criticizing the wisdom of America’s alliances as major contributors to East Asia’s stability.

Ironically, though, despite the Blob’s complaints, Mr. Trump’s biggest mistake along these lines clearly has been to continue his predecessors’ alliance policies, and even to double down in Eastern Europe – a region that could be as dangerous as East Asia.

That is, Haass and the rest of the Blob should be resting a lot easier. What a tragedy that there’s no reason to say that for the rest of us.

(What’s Left of) Our Economy: The Latest Trump Tariff Debunkers Debunked

Tags

Benjamin Della Rocca, Benn Steil, China, Council on Foreign Relations, goods imports, imports, merchandise imports, n, Peter Navarro, tariffs, Trade, tradewar, Trump, Washington Post, {What's Left of) Our Economy

Only in the free trade-worshiping American Mainstream Media could an op-ed piece titled “Debunking Trump’s Tariff Claims” be published that’s chock full of easily debunk-able claims itself.  

The first such allegation in the article, which came out on the Washington Post’s website yesterday, holds that the administration’s view that China “bears most of the burden of the tariffs” imposed by the President over the last year is based solely on adviser Peter Navarro’s explanation that China is lowering the prices of its goods in order to offset them. Authors Benn Steil and Benjamin Della Rocca of the Council on Foreign Relations note, correctly, that U.S. government data show that prices of Chinese imports haven’t fallen by nearly as much as they’ve been increased by Trump tariffs.

What Steil and Della Rocca have left out, though, could fill a book. For instance, the tariffs still only cover $250 billion worth of America’s total goods purchases of China – which last year totaled just under $540 billion. So that’s well under half. In addition, the vast majority of these levies have been in place for considerably less than a year.

Moreover, the prices of imports from China – which stem from numerous influences aside from tariffs (U.S. and other foreign market conditions for the various products involved, levels of Chinese subsidies – including value-added tax rebates that were increased last September) – have definitely shifted gears. During the pre-tariff period May, 2017-May, 2018, they rose 0.40 percent. During the largely post-tariff period May, 2018-2019 (encompassing the latest available data), they fell by 1.4 percent.

Equally interesting: Those May China import prices hit their lowest absolute level since September, 2007, nearly 12 years ago. Coincidence? Overall non-fuel import prices are down, too – but stand only at a post-September, 2017 low.

Perhaps more important, though, Navarro has in fact not staked his stance only on import prices. As he told Fox Business on June 21 (before the Steil-Della Rocca article), “China producers pay for these tariffs in the language of economics, they bear the burden of the tariffs through lower prices, lower exports, lower profits.” And there’s abundant evidence to back him up.

Notably, since July, 2018 (when the first, $50 billion, tranche of Trump tariffs were imposed), America’s goods purchases from China fell on a monthly basis by 16.66 percent. The comparable results for the previous year – an increase of 0.92 percent. Over that span, U.S. non-oil goods imports (the best global control group for goods imports from China) weakened, too, but kept growing. The slowdown was from 6.65 percent to 1.82 percent.

Another way to look at these changes is to compare U.S. goods imports from China from January-May of this year with those purchases from the same five-month stretch in years past. During the first such Trump period (covering 2016-2017), before any tariffs were imposed, these merchandise imports from China increased by 8.10 percent. The purchases went up during the following five-month stretch –  to 9.54 percent.

The growth rate during the first five-month period featuring tariffs, in 2019? There was no growth. In fact, they sank by 12.34 percent. And interestingly, the overall U.S. economic growth rate during these spans was almost unchanged. 

Since the federal government doesn’t keep monthly figures on the gross domestic product (GDP), I’ve used the next best measure — the quarterly data kept by the Bureau of Economic Analysis. On a pre-inflation basis (the same gauge as used by the trade figures), during the first between the first two quarters of 2018, the economy grew by 2.93 percent. During the first two quarters of 2019, the pace quickened only to 2.95 percent. (Because the first results for second quarter GDP aren’t in yet, I’ve used the average of these widely followed “tracking figures” as a substitute.) 

An even clearer idea of Chinese losses can be gleaned from considering what U.S. merchandise imports from China might have been without any tariffs. These kinds of exercises are anything but precise, of course. But had they increased at the same 9.54 percent rate as between January-May, 2017 and 2018 rather than shrinking by 12.34 percent, they’d have totaled $224.97 billion during the first five months of this year – a swing of nearly $45 billion.

Steil and Della Rocca didn’t bother to look at the impact on China’s global exports, either – even though it looks sizable. Between July, 2018 and May, 2019 (from that first full month of U.S. tariffs through the latest data month), China’s global overseas merchandise sales fell by 0.80 percent on a monthly basis. From July, 2017 to May, 2018 (pre-any tariffs), they expanded by 8.94 percent. 

China’s overall economic growth took a big hit, too. On an annual basis, in the third quarter of 2018, (when those initial American tariffs were slapped on), Chinese GDP expanded by 6.5 percent. (And yes, I realize these numbers can be very dodgy.) By the first quarter of this year, it had dipped to 6.4 percent. From the pre-tariff third quarter of 2017 to the first quarter of 2018, China’s growth rate remained the same – a considerably higher 6.8 percent.

President Trump and his aides certainly can and should be much more precise when they talk about the trade war’s costs. But examining these claims using partial quotes and isolated figures is surely a much greater sin. In other words, the bigger the picture examined, the better the Trump administration’s contention that the Chinese economy is suffering a much greater burden from U.S. tariffs than America’s

Our So-Called Foreign Policy: The Saudis May Be Killing Globalism as a U.S. Strategy, Too

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Council on Foreign Relations, Financial Times, globalism, Jamal Khashoggi, Mohammed bin Salman, Our So-Called Foreign Policy, Richard Haass, Saudi Arabia

Here’s the latest noteworthy indication that (1) the globalist approach that dominated U.S. foreign policy during the pre-Trump decades is dissolving into not only incoherence but transparent virtue-signaling; and that (2) the apparent murder of Saudi journalist (and legal U.S. resident) Jamal Khashoggi at the hands of thugs linked to the Saudi monarchy is turning into a big contributor:  It’s a Financial Times essay from no less than Richard N. Haass, who is nothing less than the President of the Council on Foreign Relations, which is nothing less than the world’s premier globalist think tank.

For good measure, Haass has also held senior positions in both Bush administrations and, if a mainstream, pre-Trump-style Republican ever wins the White House again, would be a likely Secretary of State or national security advisor candidate. (Full disclosure – he also preceded me at Roslyn High School on New York’s Long Island by two years, but we moved in different circles.)

Haass’ subject was no surprise. The Mainstream Media and bipartisan globalist national foreign policy establishment evidently views the Khashoggi affair as the most important story of the day. And week. And month. And possibly year.

What was striking, though, was the completely confused nature of Haass’ recommendations, and in particular, how he struggled – ultimately unsuccessfully – to reconcile the peer pressure he obviously felt to urge a (seemingly) tough U.S. response to Khashoggi’s demise, and his own convictions as a card-carrying globalist that because of the United States’ still-vital interests in the Middle East, Washington has no choice but to view Saudi Arabia’s ultimately as one of those distasteful regimes that the United States nonetheless needs as an ally.

In fact, Haass explicitly recognizes the dilemma thereby created:

“The choices facing the US and other governments are not easy. They are the latest example of the foreign policy predicament of having to deal with flawed leaders of important countries. Principle and interests inevitably collide, as they often did during the cold war and when it came to dealing with the Shah’s Iran in the 1970s.”

And he tries to make the case for “doing something” significant in coolly unsentimental terms:

“The war in Yemen, arguably Saudi Arabia’s Vietnam, is a humanitarian and strategic disaster. MbS’s [Crown Prince Mohammed bin Salman] effort to destabilise Qatar has weakened a country that is home to the principal US military base in the region. There was also the bizarre kidnapping and detention of Lebanon’s prime minister in 2017. And the Saudis failed to bring Israelis and Palestinians together. Moreover, the fate of Mr Khashoggi will make it much more difficult to line up international support to pressure Iran. Riyadh will appear to many to be at least as much of a problem as Tehran.”

But what is the “something” that Haass believes will thread the policy needle and make clear to the royal family that “US and western support for [MbS] cannot be taken for granted?” “Distinguishing” between MbS and the rest of the Saudi monarchy. Dropping him from any White House invite lists. A “reconsideration” by American businesses of (all? some?) “partnering” with the government in Riyadh as long as MbS is in charge. “Constraints on the [Saudi] use of American-supplied military equipment and intelligence” especially for the “misguided war in Yemen.” But on efforts to counter Islamic extremists? The Iranians? Heaven only knows.

Additionally, Haass wants Western governments to press publicly “for an independent and unconstrained investigation of what happened in Istanbul.”

Sadly, however, these measures either amount to transparent bupkis, or steps that – if Haass’ words are taken at face value – could easily endanger interests that Haas and nearly all other globalists have long regarded as crucial for the United States. But it’s far from clear that these proposals should be taken at face value, or anywhere close. In fact, Haass himself argues that President Trump is correct in noting that Saudi Arabia

“is an important and valuable ally that buys significant amounts of arms, is helpful in Syria and in the fight against terrorism, and is a partner versus Iran. Saudi Arabia still produces about one out of every 10 barrels of oil in the world. Its investments are large and important to a number of businesses and projects.”

Hence this point which, for all the above analytical meandering, seems to be Haass bottom line: “[I]t could prove counter-productive and risky to call for the departure of [MbS], who enjoys broad popularity at home. The alternative to him is not clear. Broad instability would serve the interests of no one.”

Of course the Saudis will focus on these sentences above all others. But at least Haass – like other posturing globalists – has achieved the only objectives that could logically explain this exercise in internal contradiction: He preserves his globalist-in-good-standing status. And he’s signaled his supposed virtue.

Our So-Called Foreign Policy: More Childish Attacks on Trump

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alliances, allies, Council on Foreign Relations, foreign policy establishment, George H.W. Bush, Greece, IMF, International Monetary Fund, international organizations, internationalism, Iran deal, JCPOA, Joint Comprehensive Plan of Action, journalists, Mainstream Media, media, military bases, NAFTA, New Zealand, North American Free Trade Agreement, Our So-Called Foreign Policy, Paris climate accord, Philippines, Richard N. Haass, Ronald Reagan, TPP, Trans-Pacific Partnership, Trump, UN, UNESCO, United Nations, Withdrawal Doctrine, World Bank, World Trade Organization, WTO

I’m getting to think that in an important way it’s good that establishment journalists and foreign policy think tank hacks still dominate America’s debate on world affairs. It means that for the foreseeable future, we’ll never run out of evidence of how hidebound, juvenile, and astonishingly ignorant these worshipers of the status quo tend to be. Just consider the latest fad in their ranks: the narrative that the only theme conferring any coherence on President Trump’s foreign policy is his impulse to pull the United States out of alliances and international organizations, or at least rewrite them substantially.

This meme was apparently brewed up at the heart of the country’s foreign policy establishment – the Council on Foreign Relations. Its president, former aide to Republican presidents Richard N. Haass, tweeted on October 12, “Trump foreign policy has found its theme: The Withdrawal Doctrine. US has left/threatening to leave TPP, Paris accord, Unesco, NAFTA, JCPOA.” [He’s referring here to the Trans-Pacific Partnership trade deal that aimed to link the U.S. economy more tightly to East Asian and Western Hemisphere countries bordering the world’s largest ocean; the global deal to slow down climate change; the United Nations Educational, Scientific and Cultural Organization; the North American Free Trade Agreement, and the Joint Comprehensive Plan of Action – the official name of the agreement seeking to deny Iran nuclear weapons.]

In a classic instance of group-think, this one little 140-character sentence was all it took to spur the claim’s propagation by The Washington Post, The Atlantic, Marketwatch.com, Vice.com, The Los Angeles Times, and Britain’s Financial Times (which publishes a widely read U.S. edition).  For good measure, the idea showed up in The New Republic, too – albeit without mentioning Haass.

You’d have to read far into (only some of) these reports to see any mention that American presidents taking similar decisions is anything but unprecedented. Indeed, none of them reminded readers of one of the most striking examples of alliance disruption from the White House: former President Ronald Reagan’s decision to withdraw American defense guarantees to New Zealand because of a nuclear weapons policy dispute. Moreover, the administrations of Reagan and George H.W. Bush engaged in long, testy negotiations with long-time allies the Philippines and Greece on renewing basing agreements that involved major U.S. cash payments.

Just as important, you could spend hours on Google without finding any sense in these reports that President Trump has decided to remain in America’s major security alliances in Europe and Asia, as well as in the United Nations, the International Monetary Fund, the World Bank, and the World Trade Organization (along with a series of multilateral regional development banks).

More important, you’d also fail to find on Google to find any indication that any of the arrangements opposed by Mr. Trump might have less than a roaring success. The apparent feeling in establishment ranks is that it’s not legitimate for American leaders to decide that some international arrangements serve U.S. interests well, some need to be recast, and some are such failures or are so unpromising that they need to be ditched or avoided in the first place.

And the reason that such discrimination is so doggedly opposed is that, the internationalist world affairs strategy pursued for decades by Presidents and Congresses across the political spectrum (until, possibly, now) is far from a pragmatic formula for dealing with a highly variegated, dynamic world. Instead, it’s the kind of rigid dogma that’s most often (and correctly) associated with know-it-all adolescents and equally callow academics. What else but an utterly utopian ideology could move a writer from a venerable pillar of opinion journalism (the aforementioned Atlantic) to traffick in such otherworldly drivel as

“A foreign-policy doctrine of withdrawal also casts profound doubt on America’s commitment to the intricate international system that the United States helped create and nurture after World War II so that countries could collaborate on issues that transcend any one nation.”

Without putting too fine a point on it, does that sound like the planet you live on?

I have no idea whether whatever changes President Trump is mulling in foreign policy will prove effective or disastrous, or turn out to be much ado about very little. I do feel confident in believing that the mere fact of rethinking some foreign policy fundamentals makes his approach infinitely more promising than one that views international alliances and other arrangements in all-or-nothing terms; that evidently can’t distinguish the means chosen to advance U.S. objectives from the objectives themselves; and that seems oblivious to the reality that the international sphere lacks the characteristic that makes prioritizing institution’s creation and maintenance not only possible in the domestic sphere, but indispensable – a strong consensus on defining acceptable and unacceptable behavior.

One of the most widely (and deservedly) quoted adages about international relations is the observation, attributed to a 19^th century British foreign minister, that his nation had “no eternal allies, and we have no perpetual enemies. Our interests are eternal and perpetual, and those interests it is our duty to follow.” Until America’s foreign policy establishment and its media mouthpieces recognize that this advice applies to international institutions, too, and start understanding the implications, they’ll keep losing influence among their compatriots. And rightly so.

Our So-Called Foreign Policy: So You Think Trump is a Dangerous Nut on North Korea?

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Alex Ward, alliances, allies, Ana Fifield, Ankit Panda, Associated Press, BBC, CNN, Cold War, Council on Foreign Relations, David J. Rothkopf, David Jackson, deterrence, Diane Feinstein, Ed Markey, foreign policy, foreign policy establishment, Kim Jong Un, media, Nicole Gaouette, North Korea, nuclear weapons, Our So-Called Foreign Policy, Peter Baker, political class, Rick Gladstone, Stewart Patrick, The Atlantic, The Diplomat, The New York Times, Trump, United Nations, USAToday, Vox.com, Washington Post

Weird as it sounds, the North Korea nuclear crisis has created two significant benefits – though unfortunately neither has yet created either establishment or popular pressure to change an increasingly reckless American approach.

Still, it’s promising that dictator Kim Jong Un’s rapid development of nuclear weapons that can reach the U.S. homeland is not only revealing that America’s longstanding approach to defense alliances is now exposing the nation to the risk of nuclear attack even when its own security is not directly at stake. It’s also more recently begun exposing America’s many foreign policy and other elite mainstays either as ignoramuses or (much more likely) shameful hypocrites.

The reason? They profess to be shocked, just shocked (Google “Casablanca” and “Louis Renault”) that President Trump has threatened to “totally destroy” North Korea in order “to defend itself or its allies.” As if they’ve never heard of “nuclear deterrence.” And don’t know that such saber-rattling has been U.S. policy for decades.

To review briefly, since fairly early in the Cold War, and especially since the former Soviet Union developed its own impressive nuclear forces, American leaders have overwhelmingly concluded that the only reasonable uses of these weapons was preventing a nuclear attack on the United States itself, or a similar strike or conventional military assault on one of the countries it was treaty-bound to protect. The idea was that even nuclear-armed potential aggressors the Soviets and Chinese (and the North Koreans, once they crossed the threshhold) would think at least twice before moving on targets if they had reason to fear that the United States would launch its own nukes against those countries.

From time to time, some politicians and analysts suggested that the effects of such nuclear weapons use could be restricted to efforts to take out the enemy’s remaining nuclear weapons or otherwise fall short of “totally destroying” that adversary. But for the most part, the idea of limited nuclear war has been rejected in favor of vowing annihilation. And except for disarmament types on the Left and super-hawks on the Right (who supported the aforementioned “counterforce” approach), the political class comprised of office-holders and journalists and think tankers was just fine with the nuclear element of U.S. alliance strategy.

It’s completely bizarre, therefore, that almost none of the press coverage – including “experts'” analyses – of Mr. Trump’s September 19 statement evinces any awareness of any of this history. Instead, it’s portrayed the “totally destroy” threat as appallingly monstrous, unhinged rhetoric from an unprecedentedly erratic chief executive. Just as bad, President Trump is accused of playing right into Kim’s hands and shoring up his support with the North Korean populace.

For instance, here’s how Washington Post reporter Ana Fifield yesterday described the consensus of of North Korea specialists she had just surveyed:

“Kim Jong Un’s regime tells the North Korean people every day that the United States wants to destroy them and their country. Now, they will hear it from another source: the president of the United States himself.

“In his maiden address to the United Nations on Tuesday, President Trump threatened to “totally destroy North Korea.” Analysts noted that he did not even differentiate between the Kim regime, as President George W. Bush did with his infamous “axis of evil” speech, and the 25 million people of North Korea.”

Here’s the New York Times‘ take, from chief White House correspondent Peter Baker and foreign policy reporter Rick Gladstone:

“President Trump brought the same confrontational style of leadership he has used at home to the world’s most prominent stage on Tuesday as he vowed to ‘totally destroy North Korea‘ if it threatened the United States….”

Similarly, USAToday‘s David Jackson described the Trump speech as “a stark address to the United Nations that raised the specter of nuclear warfare” and contended that “Trump’s choice of words on North Korea is in keeping with the bellicose rhetoric he’s already used to describe the tensions that have escalated throughout his eight months in office.”

As for the Associated Press, the world’s most important news wire service, it was content to offer readers a stunning dose of moral equivalence: “In a region well used to Pyongyang’s pursuit of nuclear weapons generating a seemingly never-ending cycle of threats and counter-threats, Mr. Trump’s comments stood out.“

CNN‘s approach? It quoted a “senior UN diplomat” as claiming that “it was the first time in his memory that a world leader has called for the obliteration of another state at the UNGA [United Nations General Assembly], noting even Iran’s most fiery leaders didn’t similarly threaten Israel.”

For good measure, reporter Nicole Gaouette added, “The threat is likely to ratchet up tensions with North Korea while doing little to reassure US allies in Asia, said analysts who added that the President now also runs the risk of appearing weak if he doesn’t follow through.”

The Council on Foreign Relations’ Stewart Patrick, who served on the State Department’s Policy Planning Staff under former President George W. Bush, told the BBC that the Trump threat is implausible, and that “I think the folks in the Pentagon when they look at military options are just aghast at the potential loss of life that could occur with at a minimum hundreds of thousands of South Koreans killed in Seoul.”

For David J. Rothkopf, a former Clinton administration official and protege of former Secretary of State Henry Kissinger who went on to edit FOREIGNPOLICY magazine (where I worked many years before), the problem is much simpler: “The president of the United States chose, in a forum dedicated to diplomacy, to threaten to wipe another nation — a much smaller one — off the face of the earth in language that was not so much hard-line rhetoric as it was schoolboy bullying complete with childish name-calling.”

Many members of the U.S. Congress were no better. Said California Democratic Senator Diane Feinstein: “Trump’s bombastic threat to destroy North Korea and his refusal to present any positive pathways forward on the many global challenges we face are severe disappointments. He aims to unify the world through tactics of intimidation, but in reality he only further isolates the United States.”

Massachusetts Democratic Senator Ed Markey brought up a war powers angle: “The more the president talks about the total destruction of North Korea, the more it’s necessary for the country and the Congress to have a debate over what the authority of a president is to launch nuclear weapons against another country.”

What’s of course especially ironic about Markey’s words is that such a U.S. policy of “no first use” of nuclear weapons would effectively destroy the American alliances that liberals like Markey have become enamored with lately, and that President Trump is often charged by these same liberals as attempting to dismantle.

Some other news organizations and websites have behaved even more strangely – lambasting the Trump threat but then acknowledging deep inside their accounts that the President said nothing fundamentally new.

For example, the viscerally anti-Trump Vox.com website predictably led off one of its accounts with, “On September 19, President Donald Trump gave his first speech to the United Nations General Assembly. His harsh rhetoric toward North Korea stood out — mostly because he threatened to obliterate the country of 25.4 million people.”

Six paragraphs later, writer Alex Ward got around to mentioning that “A few [specialists] noted that it was similar to what other presidents, including President Obama, have said before.”

And in an Atlantic post titled, “A Presidential Misunderstanding of Deterrence,” author Ankit Panda of The Diplomat newspaper accused President Trump of using “apocalyptic rhetoric” and threatening “to commit a horrific act expressly forbidden by international humanitarian law….”

But then he immediately turned around and admitted,

“The remarks echoed similar, countless deterrent threats levied against North Korea by past U.S. presidents with more subtlety and innuendo, perhaps allowing for a more calibrated and flexible response. But ultimately vowing to ‘totally destroy’ North Korea if America or its allies come under attack is, in fact, not all that sharp a break from existing U.S. policy.”

If these treatments of the North Korea crisis were simply efforts to demonize President Trump by abusing history, that would be contemptible enough, but what else is new from America’s too often incompetent and scapegoat-addicted elites?

But something much more dangerous is at work here. Individuals who, for good reasons, have not been regarded as kooks are using Never Trump-ism to foster a genuinely kooky idea. They’re suggesting that the alliances so central to America’s foreign policy making for decades should be viewed as little more than kumbaya symbols, and that anyone speaking frankly about their possibly deadly and indeed horrific implications is beyond the pale – even though the proliferation of nuclear weapons has unmistakably rendered these arrangements far more perilous.

In other words, they’re spreading the worst, and most childish, of all canards about foreign policy, or about any dimension of public policy – not that a particular set of choices is sound or not (that’s almost always legitimately debatable), but that hard choices never need to be made at all.

(What’s Left of) Our Economy: Why Trade’s Best Champions Really Need to Raise Their Game

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Brad Setser, China, Council on Foreign Relations, Financial Times, George W. Bush, Global Imbalances, manufacturing, Martin Wolf, non-tariff barriers, offshoring, offshoring lobby, tariffs, Trade, Trump, World Trade Organization, WTO, {What's Left of) Our Economy

When you’ve been in the trade policy trenches as long as I have, it’s important these days to look up from time to time and pinch or otherwise remind yourself how dramatically Donald Trump’s election a president has changed the policy landscape. And I’m of course someone who broadly supports his stated objectives in this field.

Weirdly, however, folks who oppose Mr. Trump’s views keep showing that their need to wake up is even greater, and this goes double for backers of the general trade status quo intellectually honest enough to acknowledge many of its serious problems. The biggest adjustment they need to make? Demonstrating that they can develop approaches to solving these problems that are realistic alternatives to the tariff-centered measures that the president is apparently contemplating. Recent offerings from the Financial Times‘ Martin Wolf and the Council on Foreign Relations’ Brad Setser reveal how much more progress is needed.

In Wolf’s latest column, he heaps scorn on the Trump-ian claim that expanding trade with China (or with any country) has played a “significant” role in causing any of U.S. manufacturing’s problems. And he declares that “Nothing [President Trump] does will reinstate manufacturing to its lost role as the dominant provider of “good jobs”.

But Wolf continues to see a different – and arguably more important – danger stemming from preserving the global trade status quo:

“[H]uge current account surpluses in some countries forced deficit countries into financial excesses as an (ultimately unsustainable) way to maintain demand in line with potential output. The [2007-08 financial] crisis vindicated the concern of John Maynard Keynes about the potentially malign role of surplus countries in the global economy.”

So logically, Wolf is telling readers that if better balance doesn’t come to global trade, Financial Crisis 2.0 could easily result – echoing a warning made both by me and by many eminent economists.

What does he recommend to stave off such a catastrophe? A “proactive, not defensive” approach that includes a drive to “open global markets” (as if this hasn’t been tried before?) and – most interesting in light of his opposition to U.S. trade barriers – “forcing” chronic trade surplus countries like China “to rely more on domestic and less on external demand.” It’s somewhat encouraging that Wolf recognizes that the surplus countries (read “protectionists”) won’t take these steps voluntarily. But what could he possibly mean by “forcing” if no “defensive,” or even punitive, measures like tariffs are permissable? Maybe he’ll tell us in his next column?

The gap between diagnosis and prognosis is at least as wide in Setser’s January 18 post on “China’s WTO Entry, 15 Years On.” The essay is worth reading in its entirety, for it decimates the arguments made by the entire bipartisan U.S. globalization cheerleading policy establishment (not to mention the corporate Offshoring Lobby) about the unprecedented benefits that would flow from admitting China into the global trade rule-making and enforcement body – and thereby shielding it legally from most American unilateral economic power and leverage. Here, though, are a few key examples:

>”It now seems clear that the magnitude of the post-WTO China shock to manufacturing was significantly larger than was expected at the time of China’s entry into the WTO. China already had ‘most-favored-nation” (MFN)/“normal trade’ access to the U.S. Market….But China’s pre-WTO access to the U.S. came with an annual Congressional review, and the resulting uncertainty seems to have deterred some firms from moving production to China.”

>”Moving final assembly of electronic goods to Asia created pressures for the full supply chain [i.e., the much more valuable and innovative production of parts and components, as well as the research and development and engineering work] to move to Asia….Even if the currency issue is taken off the table, I suspect that the trade gains—or really the export gains— from integrating China into the WTO’s “rules” were overestimated.”

>“It is now clear that WTO accession was not enough to make China into an easy market for foreign firms to supply from outside China.

“Here is a point that I think should get a bit more emphasis. China’s imports of manufactures, net of its imports of imported components, peaked as a share of Chinese GDP in 2003—and have fallen steadily since then. There is no ‘WTO’ effect on China’s imports of manufactures, properly measured (i.e. leaving out imports for re-export).”

>”Some firms have succeeded in China, but generally by producing in China for the Chinese market, not by selling to China. Successful challenges to some specific Chinese practices in the WTO have yet to alter this pattern….The WTO rules aren’t all that constraining in a country like China—thanks to state control of commanding heights enterprises and banks, and institutions, such as the National Development and Reform Commission (NRDC), that assure party control of major state firms and large investment projects.”

>Many WTO-legal remedies that might have worked were not used “because U.S. and European firms benefited from making use of Chinese production to meet global demand” – and because George W. Bush’s administration danced to their tune.

But Setser’s policy recommendations seem no more realistic than Wolf’s, especially if significant, unilateral tariffs are ruled out:

“The correct fight right now is against the domestic policies that keep China’s savings so high, against a surge in capital outflows that leads to a yuan depreciation that then becomes entrenched (if China’s currency goes down, I worry it won’t go back up), and against Chinese import-substituting industrial policies that aim to displace major exports to China.”

In the pre-Trump period, the diagnosis-prognosis gap unaddressed by intellectually honest supporters of the trade status quo didn’t matter much, since American presidents were so determined to preserve that status quo. But this time, it seems to be different.  And if these trade advocates hope to prevent what they tend to describe as a counterproductive – and maybe worse – shift in American policy, they’ll need to do a much better job of showing that no major course change is needed at all.