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

Tags

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

In addition:

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

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

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

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

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

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

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

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

Making News: Podcast Now On-Line of National Radio Interview on TikTok, China Strategy, Biden, & the Stimulus Negotiations

Tags

China, Congress, decoupling, election 2020, Joe Biden, Making News, Mark Meadows, Market Wrap with Moe Ansari, national security, privacy, stimulus package, tech, TikTok, Trump

I’m pleased to announce that a podcast is now on-line of an interview I did yesterday on Moe Ansari’s nationally syndicated radio show.

Click here and then scroll down a bit to the segment with my name on it to listen to a timely, informative session on three major headline issues: what President Trump is trying to accomplish with his decision to ban from U.S. markets the popular Chinese social media app TikTok; how a President Joe Biden is likely to handle China issues; and what to expect from the current White House-Congress talks on the economic stimulus package. The segment comes on at about the 23:50 mark.

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

 

(What’s Left of) Our Economy: Without Supply Chain Transparency, There’s No Supply Chain Security

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Bureau of Economic Analusis, Defense Department, Defense Innovation Unit, defense manufacturing, election 2020, FDI, foreign direct investment, GAO, Government Accountability Office, health security, Joe Biden, medical equipment, national security, offshoring, Pentagon, supply chains, Trump, {What's Left of) Our Economy

Earlier this month, I criticized Joe Biden’s new plan to strengthen U.S. domestic manufacturing with a special eye toward boosting the security of key supply chains for holding out as a model the Pentagon’s work on defense-related manufacturing. Just this week, I found even more evidence to support the view that if the presumptive Democratic presidential nominee is really serious about achieving this goal (and given his longstanding record on trade and globalization issues, ample doubt is warranted) he’ll need a dramatically new model.

By the way, these findings show that the Trump administration also remains too far from getting its own supply chain act together.  And the main reason is a dangerous – and wholly unnecessary – lack of supply chain transparency.

The evidence comes from a September, 2019 report from the U.S. Government Accountability Office (an investigative arm of Congress) that summarizes the views of a panel of specialists convened to discuss foreign threats to the U.S. defense manufacturing base, and presents findings on the subject from various U.S. government agency, private sector, and university studies. The threats include the offshoring of the production of key defense-related goods; takeovers by foreign entities of U.S.-based facilities that supply these products, along with important services, or foreign acquisitions of significant stakes in these facilities; and the loss of U.S. competitiveness in these areas for market- and competition-related reasons and the resulting turns to foreign suppliers.

And crucially, the panelists consulted (listed on p. 40 of the report) include no notable supposed globalization alarmists or China hawks. In fact, one panelist was a senior executive of the U.S.-China Business Council, which has been a major pillar of what I call the nation’s Offshoring Lobby.

The report correctly noted that the use of foreign-origin goods and services can benefit U.S. national security interests. Specifically, it can “lower costs and provide better access to foreign workers and markets [which can help the companies in question gain the benefits of economies of scale by winning more customers].” Moreover, “When companies that offshore contract with DOD [the Departent of Defense], they can pass those benefits along. Foreign investment can help U.S. companies grow.”

So as in all areas of public policy, the key is finding the best balance, and reasonable people can always legitimately disagree on where it’s found. But here’s what’s really alarming about the message sent by the GAO report – and collectively by all the specialists and materials consulted: Neither the Defense Department nor any other branch of the U.S. government has the ability needed to achieve this goal partly because they lack the information needed to identify vulnerabilities, and partly because much helpful information is kept confidential at the request of private industry.

Here are the main relevant observations and conclusions presented in the report making emphatically clear that the nation lacks the supply chain transparency vital to improving supply chain security:

>”[T]he absence of a common definition of offshoring makes it difficult to analyze the extent to which offshoring is occurring in general as well as its effect on the defense supplier base. As such, the extent of offshoring and its effects are largely unknown.”

>”[P]ublicly available data do not provide granularity to analyze foreign direct investments in industry subsectors that comprise the defense supplier base.”

>”Pentagon “industrial policy officials told us that BEA’s [the Commerce Department’s Bureau of Economic Analysis] publicly available data are not complete enough to assess foreign investments in U.S. defense industrial subsectors. We also found that BEA does not disclose certain data for industry subsectors if the data would disclose the identity of individual companies, as these data are considered confidential. For example, BEA data on new foreign direct investment from China in the U.S. industry subsector “electrical equipment, appliances and component manufacturing” are not publicly available for 3 of the 5 years we reviewed.”

>”[A]ccording to BEA, new foreign direct investment data do not capture foreign investment transactions that involve less than 10 percent voting ownership in a U.S. enterprise. This may include data on venture capital investments in U.S. start-ups. According to a report by the Defense Innovation Unit (DIU) within DOD, there are an increasing number of investments in U.S. venture-backed startups from China-based investors that are not tracked by the U.S. government. This limits full visibility into foreign investors and the technologies they are investing in, as well as any increase or decrease in investment flows.”

>The DIU “echoed concerns about the limitations of U.S. government data and stated that the U.S. government does not comprehensively track all available data on investments, including those from private sources to assemble a complete picture of the level of foreign investment in U.S. companies.”

One big takeaway from the above is that the Defense Department is far from the only culprit here. Much more important, though, nothing could be clearer from this list of information gaps than that the Pentagon that Biden would rely on hasn’t made much of an effort to close them. And although the Trump administration has rhetorically prioritized reshoring manufacturing back to the United States in part for national security-related reasons, and can boast noteworthy progress in changing the U.S. trade policies that have encouraged so much defense-related offshoring, it’s clearly made little progress in making sure that it has the most fundamental information it needs to make sound decisions.

Also critical to recognize: It’s not that this information doesn’t exist. As I’ve previously noted, the companies that produce these goods and provide these services know exactly they, and most of their own contractors and subcontractors, are doing. Fully understanding and optimizing their own operations, after all, is one of the main ways they make money.

And the best way to extract what the government needs is to require legally what I’ve described as “Truth in Globalization” – and require it fast. Otherwise, no matter who wins the Presidency in November, the U.S. government will needlessly keep flying blind on supply chain security.

Im-Politic: Signs That The Mob is Starting to Rule

Tags

cancel culture, Chicago, Christopher Columbus, Confederate monuments, Connecticut, election 2020, freedom of the press, history wars, ImPolitic, Nelson Lee, peaceful protests, press freedom, protests, public safety, Seattle, Seattle Police Department, Seattle Times, shield laws, Ulysses S. Grant, violence, Washington Post

The next time you hear or read that the vast majority of protests during these turbulent times in America are peaceful (which will surely be within the next five minutes if you’re a news follower), keep in mind this pair of developments. They give me the willies and should so unnerve you, even if you (like me) believe that the vast majority of the protests have indeed been peaceful.

The first matters because it makes clear as can be that some of the protest groups contain individuals who make the cohort of brazen looters that’s emerged in so many violence-wracked cities look nearly harmless. What else can be reasonably concluded from this Washington Post account (yes, the same Washington Post whose journalism I slammed yesterday) of a court case in Seattle dealing with whether news organizations in the city could be ordered to turn over to the Seattle Police Department photos and video their staffers had taken of protesters who had “smashed windows, set police cars on fire, and looted businesses.” The cops’ intent – use this material to find the perpetrators and arrest them.

I was hugely relieved to read that the judge presiding over the case did rule that most of the material (all unpublished or posted) must be provided. But I was aghast at the reason given for the news organizations’ resistance. The Seattle Times, for its part, did cite freedom of the press concerns – involving Washington State’s shield laws, which entitle news organizations to protect source materials. These laws, which in various forms are practically universal throughout the United States, are indeed essential for enabling journalists to secure information that governments would rather keep secret for self-serving reasons.

The Times also made the reasonable (though in this case, not necessarily dispositive) claim that such cooperating with the police would put its credibility at risk. As contended by Executive Editor Michele Matassa Flores:

“The media exist in large part to hold governments, including law enforcement agencies, accountable to the public. We don’t work in concert with government, and it’s important to our credibility and effectiveness to retain our independence from those we cover.”

But these weren’t the only reasons cited by the paper. In an affidavit, Times Assistant Managing Editor Danny Gawlowski attested “The perception that a journalist might be collaborating with police or other public officials poses a very real, physical danger to journalists, particularly when they are covering protests or civil unrest.”

Moreover, Gawlowski stated, this danger wasn’t hypothetical. It had already happened. According to the Post‘s summary of his affidavit;

“The request could significantly harm journalists, the Times argued, at a time when reporters already face violence and distrust from protesters. One Times photographer was hit in the head with a rock thrown by a protester and punched in the face by another demonstrator.”

In other words, the Seattle Times, anyway, wanted to refuse to help law enforcement protect public safety because at least in part it was afraid that some protesters might attack them even more violently than they already had.

That sure sounds like intimidation to me, and successful intimidation at that. And even though the judge thankfully ordered substantial (though not full) cooperation, who’s to say that the Times won’t pull its protests coverage punches anyway? Even more important, what if violence-prone protesters elsewhere in the country read about this case, try to strong-arm local or national news media, too, and succeed? And what if not every judge holds the same priorities as Seattle’s Nelson Lee? Talk about a danger to democratic norms – as well as public safety.

The second development concerns decisions by governments in at least two parts of the country to take down controversial statues – a major front in the nation’s history wars. Don’t get me wrong: Elected authorities removing these monuments is sure better than unelected mobs toppling or defacing them – as long as these actions follow legitimate procedures and aren’t arbitrary. And as I’ve written repeatedly, in the case of Confederate monuments, it’s usually not only completely justified, but long overdue.

But in these cases, it’s the rationale for these actions that’s deeply disturbing. In both Connecticut and in Chicago, statues of Christopher Columbus and former President and Civil War Union supreme Union commander Ulysses S. Grant, respectively, were removed (as Windy City Mayor Lori Lightfoot explained her reasoning) “in response to demonstrations that became unsafe for both protesters and police, as well as efforts by individuals to independently pull the Grant Park statue down in an extremely dangerous manner.”

Translation: “I was afraid of the mob. And I decided to let them win.” No better definition could be found of the kind of appeasement that only spurs further violence. And no more important challenge will confront the President and candidates for Congress who will be elected or reelected in November. 

Im-Politic: A Cracked Mainstream Media Window on Reality

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American Revolution, Black Lives Matter, Chicago, China, Colonials, crime, election 2020, Elise Viebeck, George Washington University, history wars, human rights, Im-Politic, J. William Fulbright, James Madison, James Monroe, Jerry Brewer, journalism, Lauren Lumpkin, law and order, law enforcement, Lori Lightfoot, Los Angeles Lakers, mail-in ballots, Mainstream Media, Matt Zapotosky, Out of My Window, Robert Costa, sports journalism, Trump, voter fraud, voting by mail, Washington Post, Winston Churchill, wokeness

When I was very little, one of my favorite books was a new volume from the Little Golden Books series called Out of My Window. It came out when I was a toddler, and although my mother wasn’t an education Tiger Mom determined to teach me to read before kindergarten or first grade, it became clear to Adult Me (and maybe Teenage Me?) that she did use it to build up my vocabulary.

Author Alice Low’s plot was pretty straightforward. She described a typical day for a young girl not much older than Toddler Me looking out the window of her house and ticking off everything visible from that perch: a tree, the house across the street, a dog, a parked car, a neighbor walking by – even an airplane flying overhead. You get the idea. And along the way, while being read to, small children were supposed to start associating images with the relevant spoken word they heard. It was probably a great reading aid, too, once my formal education began.

I start off with this brief nostalgia trip because the Washington Post print edition that arrives at my home every morning is supposed to be a one of my windows out on the world. And today’s paper – as is often the case – is worth reviewing because it’s such a vivid reminder of how cracked, and in fact, distorted the pane of glass provided by this Mainstream Media mainstay so often is.

I still start off each day with the Sports section, truncated and, frankly, depressing, as it is. And on the front page what did I see but columnist Jerry Brewer – who’s overall a pretty sensible type – reporting that

“After George Floyd died in Minneapolis police custody, the Los Angeles Lakers [U.S. pro basketball team] made a declaration that speaks for how most players in sports — especially those in predominantly black leagues — feel: “If YOU ain’t wit US, WE ain’t wit Y’ALL!”

Nothing from him, or apparently from the Lakers, elaborating on what “wit US” means. Are the players (and coaches? and management?) telling me and other basketball fans that I need to support the full agendas of Black Lives Matter movements? Police defunding efforts? Defacing or unlawful pulldowns of all supposedly offensive statues? Moreover, what about issues that it seems no one asssociated with the Lakers is “wit”? Like the massive oppression of human rights by China, a market that’s been immensely profitable for the entire franchise.

And finally, what do the Lakers mean when they say “WE ain’t wit Y’ALL”? Will fans need to pass a political litmus test before they’re permitted to attend games once post-CCP Virus normality returns? For the time being, do the Lakers want to prevent anyone “who ain’t wit THEM ALL” from watching or listening to their games once they’re broadcast? Are they to be forbidden to purchase Laker gear? So many questions. And never even asked, much less answered, by Brewer. Maybe tomorrow?

Next I turn to the main news section.  Today’s lede story is headlined “Trump stirs fear he won’t accept an election loss.” The President’s recent statements to this effect are undeniably newsworthy. But did the article, by supposedly straight news reporters Elise Viebeck and Robert Costa tell a straight story? Grounds for skepticism include their decision to award the first color quote to a long-time Clinton-ite think tanker, to write of Mr. Trump “seizing” on “the shift to absentee voting during the coronavirus pandemic” – as if this development raised no legitimate questions about voter fraud – and to turn somersaults trying to avoid flatly acknowledging that Democratic presidential candidate Al Gore did indeed challenge the decisive Florida results in the 2000 election, not to mention their failure to note that all manner of Democrats and many other Americans have spent the better part of the last three years trying (and failing) to prove that the President’s own election was illegitimate because of interference from Russia with which the Trump campaign colluded.

Nor did tendentious front-page reporting end there. Post headline writers also told me that the President is “framing” his recently announced law enforcement operations in major cities as a “crime-fighting tactic.” And although headlines sometimes don’t perform swimmingly in capturing the essence of what reporters are trying to convey, this wasn’t one of those times, as reporter Matt Zapotosky began his story with “President Trump announced Wednesday that he is sending more federal law enforcement agents into Chicago and Albuquerque, casting the effort as one meant to help fight crime while delivering a speech that appeared designed to score political points against Democratic leaders and burnish his law-and-order image.”

In other words, according to Zapotosky (and his editors, it must always be noted), we live in a world where politicians who claim that the dispatch of federal agents to areas where crimes are unmistakably being committed, and whose own political leaders (e.g., Chicago Mayor Lori Lightfoot) have – after a burst of posturing –  declared that they welcome a federal presence, bear the burden of proof that these actions actually are intended to fight these crimes. Even if you’re a Trump hater, you’ve got to admit that this is downright Orwellian.

Sometime, however, the front page coverage is downright incoherent. Thus the headline for the companion piece to Zapotosky’s proclaimed “Right’s Depictions of push for ‘law and order’ boost Trump – for now.” But do you know how much evidence the article contained for this declaration? Try “none.” Maybe that’s why the header on the “break” portion of the article (the part that continues on an inside page) was “Trump’s effort to ‘dominate’ cities risks bipartisan backlash.” Is everyone clear on that?

For the longest time, this native New Yorker ignored the Post‘s Metro section – because for many years after moving to the D.C. area, I clung to the hope of returning home, and saw no point in following local news. But since I’ve come to terms with my geographic exile, I’m now a Metro regular reader, and this morning was especially struck by the Post‘s report of the latest developments in George Washington University’s ongoing debate as to whether the school should drop “Colonials” as its mascot and erase the term from the numerous buildings on campus using the name.

As I’m sure you’ve guessed, some of the anti-Colonials sentiment stems from the fact that the many of the American colonists held the racist views regarding black slaves and native Americans all too common (and even prevalent) among whites during the late 18^th century. But although reporter Lauren Lumpkin amply described this reasoning in the third paragraph of the article, nowhere was it mentioned that “Colonials” is also how the American colonists who decided to rebel against British authority have long been routinely described – especially in accounts of the American Revolution before independence was declared. After all, during those years, there literally was no United States of America. Indeed, if you Google “colonial forces” and “American Revolution,” you come up with more than 61,000 entries.

So although, as just mentioned, many and even most of the colonists held offensive views on race, there’s no evidence that the name “Colonials” has been intended to honor or even normalize those attitudes.

I’d like to close on the optimistic note that Lumpkin (and her editors) did bother to note that “The histories of” the men whose names some members of the George Washington community also want to expunge from the university’s physical footprint “are complex.” These include former U.S. Presidents James Madison and James Monroe, 20^th century Arkanas Democratic Senator J. William Fulbright, and Winston Churchill (who I trust I don’t have to describe).

I just wish that Lumpkin’s efforts to provide perspective were a little less threadbare than noting that Fulbright “championed international exchange and education” (ignoring his early and influential opposition to the Vietnam War) and that Churchill “helped steer his country through World War II” – if only because it’s all too possible that many of George Washington University’s and other name-changers don’t know their full stories.

I won’t include here any criticism of the Post‘s editorials or opinion columnists here because opinion-ating is the job of these offerings, they make no bones about it, and no thinking reader could possibly view them as transmitters of straight news. (I mentioned sports columnist Brewer just because I’m so sick and tired of the politicization of sports in general lately, and because I really do read it first – so it makes a special impression on me. If you believe that’s not very sound analytially, you could be right.)

But the paper’s hard news coverage needs to provide a much less varnished picture for its readers. In the meantime, I’ll be grateful that I haven’t yet seen any sign that a Woke version of Out of My Window has come out. Yet.

Making News: Podcast On-Line of National Radio Interview on U.S.-China Relations & the Biden Manufacturing Plan

Tags

Biden, China, election 2020, Europe, European Union, innovation, Joe Biden, Making News, manufacturing, Market Wrap with Moe Ansari, offshoring, technology, Trade, trade war, Trump

I’m pleased to announce that a podcast is now on-line of an interview I did yesterday on Moe Ansari’s nationally syndicated radio show.  Click here and then scroll down a bit to the segment with my name on it to listen to a timely, informative session on the CCP Virus’ impact on U.S.-based manufacturing; on U.S.-China relations and President Trump’s trade war (which could include Europe), and on presumptive Democratic Presidential nominee Joe Biden’s plan for reviving American industry. The segment comes on at about the 23:50 mark.

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

Making News: Two New National Radio Podcasts Now On-Line on the U.S.-China Trade War & the Biden Manufacturing Plan

Tags

Biden, Breitbart News Tonight, China, election 2020, Joe Biden, Making News, manufacturing, The John Batchelor Show, Trade, trade war

I’m pleased to announce that two podcasts are now on-line of national radio interviews I did last week about the status of U.S.-China relations, the trade and broader economic conflict between the two countries, and about presumptive Democratic presidential nominee Joe Biden’s new plan to revive domestic manufacturing.

The most recent is of a Thursday night segment on “Breitbart News Tonight” and can be found at this link.  To listen to this discussion of the Biden plan, you’ll need to scroll down a bit till you see my name.

The second is of a Wednesday night appearance on “The John Batchelor Show,” and this segment on the China trade war, can be found at this link.

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

Im-Politic: On Biden’s New Plan for Medical & Other Supply Chain Security

Tags

alliances, Biden, CCP Virus, China, coronavirus, COVID 19, Defense Department, Defense Production Act, DPA, election 2020, health security, healthcare goods, Im-Politic, manufacturing, offshoring, Pentagon, pharmaceuticals, PPE, supply chains, tariffs, taxes, Trade, Wuhan virus

Joe Biden’s plan for rebuilding U.S. supply chains to ensure American access to critical products like healthcare goods came out yesterday, and any fair reading would have to conclude that these proposals are about as serious as the presumptive Democratic Presidential nominee’s proposals in related areas – like China policy. That is to say, they’re not terribly serious at present.

As with China policy, the first concern entails credibility. In 2011, when Biden was Barack Obama’s Vice President, the Commerce Department issued a report detailing all sorts of dangerous vulnerabilities in U.S. supplies of all manner of vital healthcare goods. The “Obama-Biden administration” did absolutely nothing in response – unless you count avidly pursuing offshoring-friendly trade deals, like the Trans-Pacific Partnership (TPP) that were bound to worsen these vulnerabilities. You could also throw in a record of continually coddling the trade and broader economic predation practiced by China, which surely fostered similar results.

As a result, it’s legit to ask whether any of these proposals will survive Day One of a Biden presidency.

In this vein, it’s more than a little disturbing that Biden proposes to use the Defense Department’s policies to minimize supply chain vulnerabilities as his model for addressing such problems for a wide variety of products –not just healthcare-related goods. These include “energy and grid resilience technologies, semiconductors, key electronics and related technologies, telecommunications infrastructure, and key raw materials.”

Unfortunately, the principal lessons taught by the Defense Department’s record on supply chains are how to duck the problem or define it out of existence, and the administration in which Biden served was no exception. Some of the biggest specific problems (as made clear in this Obama administration report):

>The Pentagon’s overall assessments prioritized financial metrics, not specific domestic production capabilities, as measures of the defense manufacturing base’s health.

>Its treatment of globalization’s challenges placed major emphasis on taking “advantage of emerging capabilities, regardless of where they originate,” not maximizing domestic production capabilities.

>Although specific vulnerabilities – and the related need to maintain or rebuild adequate domestic capabilities – were acknowledged, this vulnerabilities were consistently portrayed as isolated holes that could somehow be plugged without taking into account the dependence of these narrowly defined products on their own supply chains. Indeed, Biden’s new plan seems to reveal a similar flaw when it describes itself as “a set of targeted proposals to ensure the United States has the domestic manufacturing capacity necessary for critical supply chains.”

>Moreover, the Department has long supported objectives such as interoperability with allies’ armed forces and maintaining traditional – pre-Trump – global systems of what it defined as free trade, both of which often clashed with the goal of incentivizing domestic production. These goals were explicitly stated in this George W. Bush administration report, and here’s no evidence that the Obama-Biden Pentagon ever disagreed.

Indeed, the new Biden blueprint indicates that the former Vice President’s definition of supply chain security is pretty global, instead of national, as well:

“Instead of insulting our allies and undermining American global leadership, Biden will engage with our closest partners so that together we can build stronger, more resilient supply chains and economies in the face of 21st century risks. Just like the United States itself, no U.S. ally should be dependent on critical supplies from countries like China and Russia. That means developing new approaches on supply chain security — both individually and collectively — and updating trade rules to ensure we have strong understandings with our allies on how to best ensure supply chain security for all of us.”

If America’s allies were proven reliable suppliers of these products themselves, Biden’s perspective would make sense. But the list of countries that have recently hoarded medical goods for themselves as soon as the CCP Virus pandemic’s full dangers became apparent included most of these allies – meaning that the U.S. vulnerability problem far exceeds “China and Russia.”

Nor is it entirely evident how clearly Biden has thought though the tax policy provisions of his plan. Tax policy’s role is clearly viewed as crucial, as the plan emphasizes that

“Pharmaceutical offshoring has been heavily driven by tax code provisions that have encouraged companies to locate pharmaceutical production in low-tax countries even where those countries have labor and other costs comparable to the U.S.”

Consequently, Biden says he will “eliminate Trump Administration tax incentives for offshoring and pursue other tax code changes that will encourage pharmaceutical production in the U.S.”

At the same time, Biden favors raising the overall U.S. corporate tax rate from the 21 percent to which it has recently been lowered to 28 percent, along with a 15 percent “minimum tax” on large corporations. So good luck to drug companies – or any other companies making goods deemed critical by Biden – gleaning clear reshoring or domestic production ramping signals from this combination.

Perhaps any confusion will be cleared up by other alleged Biden measures to boost U.S.-based production – like “new targeted financial incentives, including tax credits, investments, matching funds for state and local incentives, R&D support, and other incentives to encourage the production of designated critical materials such as semiconductors in the United States”? At best, business will surely need to see many more details along these lines before committing the needed capital.

Unless maybe as President, Biden will simply mandate that the needed new facilities will be built when all else fails (as well as in tandem with those other policies)? That’s obviously the implication of his promise to use the Defense Production Act (DPA) “to its fullest extent to rebuild domestic manufacturing capacity in critical supply chains, using the lessons learned from the COVID-19 pandemic and applying them to our national needs.”

Or does Biden actually view the DPA as his primary tool for “generating the domestic mobilization we need”? That seems like a reasonable conclusion, especially given that it’s the first specific measure he mentions. Maybe instead he’s really talking about using the Act simply “to direct U.S. companies to ramp up production of critical products that will be needed over the near-term.”

Regardless of Biden’s real intentions, though, it’s anything but clear how Biden believes the DPA can be used to increase U.S. production in many of the industries he mentions as vital where such output has largely migrated overseas That’s especially true for the “semiconductors, key electronics and related technologies, [and] telecommunications infrastructure” he specifies. It’s sure going to be far more difficult than, say, ordering auto companies, to make ventilators.

It’s just as unclear how these Biden’s ideas can succeed without a much stronger trade policy dimension – and specifically, continued and even expanded tariffs. And it shouldn’t be limited to straightening out the muddled views mentioned above. 

Specifically, maintaining levies on chronically subsidized and dumped products like metals, along with sweeping tariffs on systemically protectionist China (and on other similar countries) would send the all the companies and sectors concerned an invaluable message. Bipartisan endorsement of these protections would demonstrates that they really can have confidence that new investments won’t be decimated by trade and broader economic predation. Just as important, an enduring commitment to tariffs would help convince overseas competitors (domestic and foreign owned) that if they want to sell the products in which they have big edges to Americans, they’ll need to make these products in America.

The good news is that at least some of these mysteries may be cleared up “soon,” when this Biden plan promises the former Vice President will release his “comprehensive strategy to create American jobs through modern American manufacturing.” The bad news is that if he what he’s said and written so far is any indication, he’ll have a lot of rewriting to do.

Im-Politic: Biden’s CCP Virus Fairytales

Tags

Angela Merkel, CCP Virus, contact tracing, coronavirus, COVID 19, election 2020, Germany, Im-Politic, Jobs, Joe Biden, lockdown, reopening, shutdown, testing, unemployment, Wuhan virus

I totally get that Joe Biden would want to throw cold water all over this past Thursday’s U.S. jobs report (for June), whose reported massive gains smashed expectations for the second straight month. He’s virtually certain to be formally named the Democrats’ presidential nominee this year. Therefore, he naturally has a strong interest in portraying the state of the nation, including its economy, in the worst possible terms.

I also totally get that the nation’s media would report Biden’s gloom-mongering. He’s a major political candidate, and what he says is by definition news.

What I totally don’t get is how none of the country’s pundits and other political analysts have caught the glaring weakness and equally glaring internal contradiction in Biden’s core claim that a million more Americans “would still have their job if Donald Trump had done his job.”

The weakness: Biden apparently is charging that the President should have shut down the economy and strongly recommended mask-wearing and social distancing measures (which of course inevitably have their own, independent economy-depressing effects) much earlier than he did (the first such Trump action – a stay-at-home guidance – came on March 16). As a result, he suggests, the U.S. jobs market would be in much better shape. 

But as reported in this Washington Post examination of Biden’s CCP Virus record, nothing of the kind had issued from the former Vice President or his camp by that time. So much, therefore, for any contention that he’s been especially prescient when it comes to the virus’ impact on the economy and on employment in particular.

The contradiction: Let’s say that Biden had indeed recommended a much earlier shutdown – and that the Trump administration had taken his advice immediately. And let’s suppose that the President’s record had been much better in terms of testing and contact-tracing – which Biden has called “the key to restoring enough confidence for businesses to reopen safely and consumers to reengage with the economy” (as opposed to what he has described as the President’s reopening plan: “just open”). Would the massive job losses suffered by the U.S. economy have been avoided, as Biden has suggested? Would even “a million more Americans” be employed – and presumably safely employed (a number whose source I haven’t found, and that represents a small fraction of the 15 million jobs that remain lost since the CCP Virus’ full effects began to be felt)?

Biden and many Americans clearly would like these claims to be true. But good luck finding any supporting evidence. Indeed, everything we know about the anti-virus efforts even of countries that allegedly have dealt much better with the pandemic reveals those expectations to be wholly unrealistic.

Germany is probably the best example – since it’s not a totalitarian dictatorship like China that can lock down massively while truly trampling on the few individual liberties it ever allowed the slightest breathing room. Even so, it’s been widely depicted as the gold standard for anti-virus success.

To summarize, on March 22, Chancellor Angela Merkel imposed on the country one of Europe’s strictest lockdowns. A cautious easing began on May 6. And how have the country’s workers fared? Take a look at the chart below (from Bloomberg.com). That joblessness spike looks an awful lot like America’s. P.S. These figures don’t include millions of German workers not officially counted as unemployed only because of Bonn’s work-sharing programs, which has kept them nominally at work via wage subsidies.

Moreover, practically no sooner did Germany’s reopening begin, than significant virus case flareups began.

In other words, even Germany’s experience makes clear that if you favor maximum anti-virus efforts, like pervasive lockdowns, there’s no avoiding massive unemployment. And given the disease’s transmission rates – which may have worsened, possibly due more to mutation than to any reopenings, even as its never extreme lethality may be weakening – anyone insisting on the contrary deserves to be seen as just another cynical politician peddling fairytales.

 

Im-Politic: Bolton’s the Champion Note-Taker with No Notes

Tags

Bolton, Bolton book, China, election 2020, Im-Politic, impeachment, John Bolton, note-taking, Trump

One of the many reasons I love the English language so much is its great number of words. In fact, no less than the United Kingdom’s august Oxford University judges that it’s “quite probable” that English is the wordiest language of all. (Full disclosure:  It’s also the only tongue in which I’m fluent.) 

And America’s chattering classes have recently provided wonderful examples of English’s “wordiness” in their descriptions of the note-taking qualities of former Trump administration national security adviser John Bolton, whose newly released White House memoir portrays the President as such an utter, and indeed impeachable, cur on foreign policy issues.

Over the last few months, we’ve been told that Bolton’s note-taking is;

>“prolific”

>“voracious”

>“fastidious”

>“religious”

>“avid”

>“meticulous”

>“legendary”  and 

>“copious”

These words aren’t all synonyms, but you get the idea. And these terms were used to buttress the narrative that Bolton’s note-taking was world-class, and that because of his diligence, (and apparently sterling integrity), President Trump had ample reason to worry about any of his allegations becoming public, because.voluminous, contemporaneous – and thus presumably indisputable – documentation would be available.

But here’s something pertinent that’s barely been reported: However painstakingly and thoroughly and carefully and comprehensively and completely and conscientiously and precisely and rigorously and exactingly and extensively and commitedly and energetically and devotedly and determinedly and faithfully and accurately (yes, I’ve used a thesaurus) Bolton took his notes, it turns out that by far the best word to describe them now is fundamentally different.

That word is “non-existent.”

Because buried in the latest Bolton coverage is this not exactly trivial tidbit: the former Trump aide’s statement that “All of the notes that I took were destroyed before I left the government.”

And they weren’t destroyed by Trump loyalists hoping to stage a cover-up. They were destroyed by Bolton himself. And the icing on the cake: Bolton attributed his decision to a common U.S. officials’ desire to make sure that “anything I said” in various government meetings wouldn’t “be in the papers the next morning.”

So as Bolton acknowledged (in the National Public Radio interview transcript linked just above) “Well, look, this, the book is my best recollection.”     

I’d be the last person to rule out with absolute certainty the possibility that Bolton’s memory is so…elephantine…that he was able to reconstruct with perfect accuracy every one of the …multitudinous…incidents and Trump outrages he describes. But assuming the best of intentions from Bolton (an assumption that seems shaky at best even leaving aside oft-voiced suspicions that the author has trashed Mr. Trump mainly for the money), that would be the only a priori basis for believing his allegations. That and the apparently widespread eagerness of the President’s critics to accept whatever claims are made about him, whether there’s the slightest shred of evidence for them or not.

Not that none of Bolton’s indictment has been confirmed – although in the case of his description as a “drug deal” the President’s efforts to pressure Ukraine to investigate political rivals Hillary Clinton and now presumptive Democratic presidential nominee Joe Biden, the confirmer has been a former colleague on the National Security Council staff who harbors globalist policy prejudices as strong as his own.

But it’s also important to note that at least some of Bolton’s more sensational allegations – concerning Mr. Trump’s supposedly selfish and politically inspired curry-favoring of Chinese dictator Xi Jinping, including to the point of approving the set up of concentration camps for China’s Muslim minority Uighur population – have been explicitly denied by someone else “in the room” (to use a piece of Bolton’s book title). That was U.S. Trade Representative Robert E. Lighthizer, who’s never been accused of being a simple Trump toady even by those who disagree with this Trump-ian views on trade policy. 

Many Never Trumpers no doubt will respond to the absence of any documentation by parroting Bolton’s claim that “I’m blessed with a pretty good memory” in order to defend the book’s credibility. Much more reasonable would be to wonder (if you haven’t already) what led the President to appoint this classic Swamp creature and over-the-top neoconservative hawk in the first place.