Our So-Called Foreign Policy: Washington’s Americans Last Korea Strategy

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Asia, extended deterrence, foreign policy establishment, ICBMs, intercontinental ballistic missiles, missile defense, North Korea, nuclear weapons, Our So-Called Foreign Policy, South Korea, Trump

This post is just a quickie, since I just got back from a morning medical procedure. But it really adds some desperately needed context to all those claims that have been filling the Mainstream Media for so long characterizing President Trump as a dangerous nut when it comes to foreign policy (among other subjects), and the establishmentarians who have been conducting this foreign policy under Democratic and Republican presidents for decades as unappreciated strategic masterminds.

I guess I’d find the latter portrayal the slightest bit convincing if I hadn’t just heard the news that the United States today successfully conducted its first test launch ever of a system designed to destroy intercontinental ballistic missiles (ICBMs) before they strike their targets.

Although this development sounds good, the news should scare the bejeebers out of Americans. The reason has nothing to do with major adversaries like the Soviet Union (and now Russia) and China, which have had such missiles – capable of reaching the United States from their home countries – for decades. It’s always been deemed virtually impossible that any American defenses could keep U.S. territory adequately safe from those forces, which number in the thousands of warheads. Moreover, the political leaderships of these countries have generally been judged to be sane enough to use their nukes cautiously. As a result, protecting the nation from the proverbial mass bolt from the blue has never been seriously expected of these capabilities.

Instead, the reason for alarm has everything to do with North Korea, which has clearly been working to develop ICBM capabilities for decades, has been making impressive progress lately, and has been led by individuals who seem a lot less predictable, to put it kindly. In fact, according to this Bloomberg post, the North’s missile program dates from the mid-1970s. It tested its first with intercontinental, U.S.-striking range in 2006. And Washington has just gotten around even to testing something designed to knock one down only eleven years later?

In fact, it gets better: The interceptor that succeeded today has been used many times before to test American capabilities against shorter-range missiles. But do you know what its batting average has been since these operations began in 1999? Counting today’s success, it’s 10 for 18. That’s a performance that’s bound to get you into Cooperstown. But if the United States were attacked with 18 North Korean missiles today, it means that ten U.S. cities could become history.

By the end of this year, when the Pentagon plans to have increased the number of these systems from 36 to 44. So presumably, the odds for Americans will get better. But is there any reason to think that they’ll hit zero any time soon? That’s an especially important question to ask upon realizing that, as hostile as it is, North Korea has no intrinsic reason to launch a nuclear attack on the United States. Indeed, it has every reason to refrain from one – because it would face annihilation from vastly superior American forces. Instead, the North Korean threat stems solely from the U.S. commitment to defend South Korea from vastly superior North Korean conventional forces that the South chooses not to match. And why not? Because hiding behind American skirts is cheaper.

In other words, the U.S. government has evidently decided that it’s worth risking New York to save Seoul, even though this policy has never been openly declared to the American people. And even worse, today’s missile launch reveals that Washington has been taking its sweet time trying to make sure that millions of Americans don’t get incinerated if this policy – blandly named “extended deterrence” – fails.

Following Up: Why the U.S. Still Faces a (South) Korea Problem

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Asia, China, comfort women, Following Up, free-riding, Japan, Kim Jong Un, missile defense, Moon Jae-in, North Korea, nuclear weapons, South Korea, THAAD, Trump

Three days into his presidency, new South Korean leader Moon Jae-In seems determined to prove me wrong in warning that his election could further undermine an American grand strategy toward Asia, and North Korea in particular, that’s already in big trouble.

As I’ve written repeatedly on RealityChek, well before South Korea’s snap presidential election this past Tuesday, the nuclear umbrella extended by Washington for decades over the South and Japan had started creating an unacceptable risk of nuclear attack on the American homeland. The reason: Chinese and North Korean nuclear forces were rapidly becoming able to survive even an attack by America’s own strategic warheads and retaliate by striking the United States.

Moon’s victory seemed bound to make the American position in the region even less tenable by placing in power in Seoul an opponent of the U.S. decision to de-nuclearize the North through a combination of military threats and economic pressure.

So even recognizing that politicians don’t always govern like they campaign, I’ve been surprised to read about several instances in recent days of Moon staying on the reservation. To be sure, President Trump lent a helping hand, making the first call by a foreign head of state to congratulate Moon on his win and inviting him to the United States for an official visit. For his part, Moon declared that “The U.S.-South Korea alliance is the foundation of our foreign policy, and will continue to be so.”

But independent of this conversation came some Moon moves apparently aimed at calming fears of a major rift with the United States. Even before speaking with Mr. Trump, Moon declined explicitly to blame him for the recent escalation of tensions on the Korean peninsula, preferring to describe his predecessor in Seoul’s Blue House as the main culprit. The new president also passed up a chance to demand an apology from the United States for supporting a bloody South Korean crackdown on dissidents in the city of Gwangju in 1980 – a distinct sore point with many Koreans today.

Perhaps most strikingly, right after North Korea unleashed a strident criticism of a new U.S.-supplied missile defense system in the South that’s viewed by Moon and many of his compatriots with major reservations, a Moon spokesperson stated that the new president had told China that resolving this controversy depended on the North refraining from further “provocation.”

All the same, Washington should still remain worried about Moon and South Korea going rogue. According to Stanford University Korea specialist Daniel Sneider, Moon hasn’t closed the door completely on reopening the issue of the missile system (known as THAAD) – which is partly aimed at protecting American military forces helping to defend South Korea from North Korean attack. More seriously, Sneider writes, Moon is contemplating building alongside THAAD “an indigenous Korean Air and Missile Defense system, which would not be linked to the U.S. and Japanese missile defense architecture….”

That possibility surely would be unacceptable to the United States, as it would at the least complicate the cooperation between the U.S. and South Korean militaries that would be vital in order to defeat the North in a conflict. Even more stunning, says Sneider, Moon favors creating “a preemptive-strike system armed with South Korean ballistic missiles” – a total nonstarter with Americans, as it would make the security of U.S. forces, and by extension that of the American homeland, dangerously dependent on the decisions of a foreign government.

Nevertheless, a greater role for South Korea in dealings with the volatile and unpredictable North is a centerpiece of Moon’s platform. His objective of enabling his country to “take the initiative” on this front is entirely understandable, given its location right next door to the dictator Kim Jong Un’s fearsome arsenal of nuclear and conventional arms. Moon has also tried to reassure Washington that he would never “approach or unilaterally open talks with North Korea without fully consulting the U.S. beforehand.” Yet it’s all too easy to foresee serious disputes opening up between the two governments over when diplomacy has or hasn’t reached an impasse.

Moon’s aim of raising South Korea’s diplomatic profile also could clash with the Trump administration’s plan to rely heavily on economic muscle flexing by China, by far the North’s leading trade partner, to weaken Pyongyang’s capacity to defy its neighbors demands. On the one hand, he fears that this approach could produce an outcome to the nuclear crisis that neglects South Korean interests. On the other, however, it’s inconsistent with his more fundamental views on the economic dimensions of North Korea diplomacy.

For the United States has long hoped that potent enough sanctions would help force Pyongyang into negotiating an end to its nuclear program, and the Trump administration has ratcheted up military threats as well. In fact, sanctions on North Korea have repeatedly been approved by the entire international community. Moon has said he recognizes the need for continued sanctions of some kind, but was a top aide to one of the South Korean presidents of the 1990s who pursued a so-called “Sunshine Policy” of economic engagement with the North. Not surprisingly, he’s spoken much more often about promoting North Korean reform by expanding his country’s trade with and investment in his Stalinist neighbor than about the role of economic clamps.

Finally, the United States has struggled to shore up the anti-North Korea front by persuading South Korea and Japan to overcome deep and historic animosities and cooperate more extensively in security affairs. But in this respect, Moon has been quite the hard-liner. Specifically, he has opposed even the limited intelligence sharing with Tokyo begun by his predecessor out of unhappiness with the 2015 bilateral agreement to resolve a dispute triggered by Japan’s colonial and wartime practices of forcing Korean women to serve Japanese soldiers and officials as prostitutes (who were euphemistically called “comfort women).

The point here is not to criticize (or praise) Moon’s positions or priorities. As I emphasized in this post’s forerunner, there are any number of reasons for taking South Koreans’ views in general on North Korea with the utmost seriousness. After all, they live right next door. If mistakes are made in handling the North, they’ll suffer the worst consequences by far.

But if Moon, their new leader, is wrong, Americans would suffer fearsome consequences, too – including a retaliatory nuclear strike that could destroy one or more American cities. Even worse, this catastrophe could well stem from South Korea’s failure to spend adequately on its own defense, and consequent heavy reliance on the U.S. commitment – even though it lives in one of the most dangerous regions on earth, and even though it’s exponentially wealthier than the North. And of course, because the United State doesn’t live right next door, or even close, the upside to its own security of its current Korea and broader Asia strategy pales by comparison.

Which is why even had South Koreans chosen a more traditional leader, I would still so strongly favor letting them – and leaders and citizens of even wealthier Japan and other nearby countries – realize Moon-like ambitions, take control of their own destinies, and handle North Korea and other possible threats however they see fit.

But since it’s completely unreasonable – at best – to expect Americans to pay for the Asians’ mistakes if they’re wrong, and war breaks out anyway, Washington should withdraw these forces well before the locals take charge. The end of American military involvement would bring the added and immense benefit of removing the threat of a North Korean nuclear strike – because the United States wouldn’t be taking any actions that would fuel North Korean ire and trigger retaliation.

It’s a clear case of power creating responsibility. Especially if Moon wants more of the former for South Korea, he’ll have to accept more of the latter – for its own security. And if he’s not willing to step up, Washington should make the decision for him. 

Our So-Called Foreign Policy: South Korea’s Elections are Likely to Make America’s Asia Strategy Even Loonier

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allies, Asia, deterrence, East Asia-Pacific, free-riding, Kim Jong Un, Moon Jae-in, North Korea, Northeast Asia, nuclear weapons, Our So-Called Foreign Policy, South Korea, Tim Shorrock

This coming Tuesday will not only see a new presidential election in South Korea. It may also mark the day when a second big wheel flies off of America’s grand strategy in the Asia-Pacific region, and in particular off its approach to addressing the North Korea nuclear weapons threat.

For now on top of the United States’ loss of escalation dominance on the Korean peninsula – which I’ve written about for more than two years and which has needlessly exposed the American homeland to the risk of nuclear attack – the U.S. ally supposedly facing the greatest threat from Kim Jong Un’s heavily armed dictatorship could wind up defecting from the anti-Pyongyang coalition. It would be hard to concoct a scenario that would be less defensible strategically and politically, and more utterly absurd.

Of course, the results of the South Korea election haven’t yet come in. The front-runner, veteran left-of-center politician Moon Jae-in, is by no means anti-American. And as with so many politicians, he may govern very differently from how he’s campaigned. But as made clear by coverage of South Korean politics by my good friend Tim Shorrock – who has written on the country for decades – Moon believes that the United States and North Korea’s neighbors need to start putting much more emphasis on reopening negotiations with the North and much less on threats of military action or more effective economic sanctions. At least as important, many of his compatriots clearly agree.

Moon and his supporters could well be right – if only because they’ve been so close to the situation on the peninsula for so long. (Tim strongly believes this to be the case.) Nevertheless, they could be wrong as well. After all, their very proximity to the North might be denying them valuable perspective. Their views may be influenced too strongly by shared ethnicity. And they may, like classic free-riders, be assuming that the American nuclear umbrella will ultimately bail out the South if they’re wrong.

But although the merits of the Moon case are uncertain, the implications for the United States are anything but. If South Korea’s “doves” are right, a more durable peace could indeed be created in Korea (meaning, specifically, that the Korean War would finally come to an official end more than 60 years after an armistice halted the fighting in 1953). As a result, Northeast Asia, one of the world’s major economic dynamos, would be stabilized. And the prospect of the United States being drawn into a nuclear war with North Korea would be greatly diminished.

But it can’t be forgotten that the (mounting) nuclear risks posed by North Korea to the United States stem entirely from the American commitment to defend South Korea – and more specifically, it stems from the longstanding U.S. decision to try to deter a North Korean invasion of the South by stationing nearly 30,000 troops right at the Demilitarized Zone. They couldn’t possibly halt the North’s conventional forces, but their deaths would almost surely provoke an American nuclear strike on the North. This prospect that has certainly helped keep Pyongyang at bay – which was arguably an acceptable risk to run when Pyongyang lacked any means to hit back at American territory. But soon, pursuing this strategy could result in the North successfully launching a nuclear missile at an American city – or two or three.

Even worse from an American standpoint, a prime reason that the South relies on the U.S. nuclear umbrella for its defense is its failure to field adequate conventional forces itself. Despite living right next door to one of the world’s most heavily armed and unpredictable countries, South Korea only spends 2.7 percent of its entire economy on its armed forces. By comparison, the United States – which has no neighbors that are either powerful or hostile, let alone both – spends 4.3 percent.

All of which means that if the South Korea doves are wrong, the American people could pay a fearful price largely because one of the world’s leading economic powers has chosen to skimp on its military, and because its (new) leaders insisted on a diplomacy-first policy that gave Pyongyang yet more time to strengthen its nuclear forces. That’s a heckuva downside. And let’s not forget the chaos that would result from the United States and South Korea splitting in public and pursuing two dramatically different policies toward the North.

Supporters of the strategic status quo in East Asia are right – America’s longstanding policies have brought impressive benefits. But they’re wrong in insisting that the benefits for the United States have even remotely approached those for the East Asians themselves, including South Korea. And the emergence of a credible North Korean nuclear threat to the American homeland has skewed the relationship of costs and benefits much further against the United States.

I can’t think of a more unacceptable situation from America’s vantage point. Even before these South Korean political trends had become so prominent, it was clear to me that the best strategy for the American people was to recognize the North Korean challenge as the responsibility of North Korea’s (very wealthy and powerful) neighbors, and to withdraw the U.S. forces whose presence is bound increasingly to endanger the security of the United States itself.

The election of a South Korean dove would turn current U.S. strategy positively looney and even more dangerous to Americans – clashing strongly with the stated views of the presumed chief beneficiary’s new leader, and less able than ever to turn up the screws on the North.

I hope instead it causes America’s ossified bipartisan foreign policy establishment to realize finally that Washington can’t be placed in a position ostensibly of caring about South Korea’s security more than the South Koreans, and that if their new leaders disagree with U.S. priorities, that’s their sovereign right. By the same token, this ally can’t expect to have its cake and eat it, too. Bottom line? President Trump should let President-to-be Moon and his backers know that if they want to engage with North Korea, they feel free to give it a whirl – and that in the true spirit of an America First diplomacy, the United States will be wishing them the very best from safely on the sidelines.

Making News: Back on National Radio Tonight & in The Weekly Standard

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China, Ethan Epstein, Gordon G. Chang, illegal immigration, Making News, North Korea, The John Batchelor Show, The Washington Post, The Weekly Standard, Trade, Trump

I’m pleased to announce that I’m scheduled to return to John Batchelor’s nationally syndicated radio show tonight to talk about the latest twists and turns in President Trump’s approach to China.  The segment is slated to start at 9 PM EST and will focus on Mr. Trump’s stated belief that he’s likelier to get China’s cooperation in quelling North Korea’s nuclear threat if he refrains from cracking down on Beijing’s predatory trade practices.

You can listen live on-line here to what’s sure to be a provocative discussion among John, co-host Gordon G. Chang, and me.  And if you can’t tune in, as usual, I’ll post a link to the podcast as soon as one’s available.

In addition, it was great to see my recent report on The Washington Post‘s latest example of shameful hypocrisy on immigration issues written up in The Weekly Standard. As you’ll see, author Ethan Epstein deserves special credit for adding to the evidence that the paper will go to almost any length to justify lenient treatment for illegals.

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

Our So-Called Foreign Policy: U.S. North Korea Policy Remains Dangerously Behind the Curve Despite Signs of Progress

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alliances, Charles Krauthammer, China, deterrence, extended deterrence, Finlandization, foreign policy establishment, Japan, North Korea, nuclear weapons, Our So-Called Foreign Policy, pundits, South Korea, Trump, Washington Post

As I explained last week (not that it’s my insight alone!), America’s leading political pundits enjoy much of their fame (and consequent incomes) to their access to power. Close relations with American and other leaders can turn them into craven establishment mouthpieces when they express their own opinions. But they also enable these commentators to serve as reliable carriers of messages being sent quite deliberately by decision-makers, and by the policy specialists who advise them.

That’s why the latest column from the Washington Post’s Charles Krauthammer was both encouraging and discouraging when it comes to dealing with the growing nuclear weapons threat from North Korea. The good news, if Krauthammer’s piece is any guide, is that the policy community is finally starting to consider some desperately needed outside-the-box ideas for making sure that U.S. policy doesn’t wind up with Pyongyang destroying an American city or two. The bad news is that these same policy specialists and political leaders still don’t have their arms completely around this intensifying crisis.

Krauthammer’s main point seems to be that the United States still has “major cards” to play both against North Korea and against China, whose help President Trump says he’s counting on heavily to either de-nuclearize the North or somehow contain its weapons program to an acceptable degree. Some of them are pretty innovative and constructive, and per my analysis above, if he’s mentioning them, that’s a strong indication that important conventional thinkers and policymakers are mulling them, too.

For example, Krauthammer observes that Washington could ease many of China’s fears about the consequences of regime change in North Korea (which he describes nicely), and spur decisive pressures by Beijing, by “abjuring Korean reunification. This would not be Germany, where the communist state was absorbed into the West. We would accept an independent, but Finlandized, North Korea.

“During the Cold War, Finland was, by agreement, independent but always pro-Russian in foreign policy. Here we would guarantee that a new North Korea would be independent but always oriented toward China. For example, the new regime would forswear ever joining any hostile alliance.”

For my part, I agree that no significant American interests would be compromised or even affected by such a deal.

Maybe even more significantly, Krauthammer seems to be recommending that the United States suggest to China that, if it doesn’t get on the North Korea stick, South Korea and Japan would likely develop nuclear weapons themselves. As he notes, because of the history of brutal conflicts “The latter is the ultimate Chinese nightmare.”

If I’m right, this Krauthammer point signals that American policy toward Asian security (and possibly European security) could be headed for a highly welcome sea change. After all, as I’ve explained, preventing Japan’s nuclearization in particular has been a central goal of U.S. strategy in Asia since the end of World War II. Because a nuclear Japan, or even a conventionally mighty Japan, was thought too likely to return to its warlike ways, American leaders for decades have insisted on handling the job of defending Japan, and incurring many of the greatest risks – including triggering nuclear conflict.

And as you may remember, when candidate Trump suggested during his campaign for the White House that this approach be rethought, he was hammered by the bipartisan foreign policy establishment – including former President Obama – as a dangerous know-nothing.

So the change Krauthammer could be foreshadowing would represent nothing less than a U.S. foreign policy revolution.  It would mean that Washington at long last recognizes that the favorable nuclear balance that for so many years arguably made this policy of “extended deterrence” a reasonable risk is now rapidly changing for the worse. Specifically, as I’ve written, North Korea’s progress toward developing a secure retaliatory force now could be exposing the American homeland to risk that is by definition unacceptable because it’s being borne in order to protect other countries, not the United States itself.

Unfortunately, Krauthammer’s column also may add to the evidence that official and quasi-official thinking on North Korea remains way behind the curve. For example, he seems to recommend that Washington at least implicitly threaten China with the return of American nuclear weapons to South Korea if Beijing doesn’t raise its North Korea game.

Actually, this move would reduce the nuclear threat posed to the United States by war in Korea – by increasing the odds that such a conflict’s nuclear dimension would be confined to the exchange of short-or medium-range weapons whose destructive effects would be limited to the Korean peninsula. North Korea, according to the conventional and, to me, reasonable, wisdom, would continue to be deterred from launching nukes at the United States itself for fear that America would retaliate by using much more powerful intercontinental weapons that could completely annihilate the North (as well as the South).

So what’s the problem? Precisely because it alone would suffer the greatest damage, and precisely because that knowledge would make America likelier to use those short-range weapons in response to an invasion from the North, this strategy has surely become completely unacceptable to South Korea. And you can bet that neighboring Japan isn’t a big fan, either.

The Asian allies would greatly prefer that, if U.S. nuclear weapons are used in a Korean conflict, they be the weapons that shift as many risks as possible to the United States itself – and create the chance that the nuclear dimension of any Korean conflict would be fought literally over their heads. South Korea would also (legitimately) tell the United States that threatening North Korea with instantaneous nuclear destruction if it invades the South is the best way to reduce the chances of that invasion taking place to begin with. In other words, it’s the best way to strengthen deterrence and therefore preserve peace.

I know that for those outside the foreign policy community, these ideas sound completely loony. But they’re exactly the kinds of ideas that had roiled relations between the United States and its allies in Europe for decades, too.

Krauthammer also endorses, at least in principle, the notion of conveying American resolve to the North by shooting down “a North Korean missile in mid-flight to demonstrate both our capacity to defend ourselves and the futility of a North Korean missile force that can be neutralized technologically.”

He’s correct in writing that this option would be safer than a “preemptive attack on North Korea’s nuclear facilities and missile sites [which] would almost surely precipitate an invasion of South Korea with untold millions of casualties.” But what if the shoot-down attempt fails? Wouldn’t that further embolden the North? I sure as heck wouldn’t want to take that chance.

So despite the encouraging signs in Krauthammer’s column, I remain convinced that the Korean crisis is a situation where the only choices for the United States are not between good and bad, or even between bad and worse, but (because of the nuclear dimension) between perversely reckless and downright suicidal. Therefore, U.S. leaders need to capitalize on the only truly decisive asset working on their country’s behalf –America’s great distance from the peninsula – and withdraw as soon as possible the military forces still stationed in South Korea. They have no ability to advance or defend important U.S. interests at acceptable risk, but they have greatly and rapidly increasing ability to drag the nation needlessly into a potentially disastrous conflagration.

(What’s Left of) Our Economy: How Trump Can Get His Trade Chops Back

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bilateral trade agreements, China, dispute resolution, free trade agreements, Government Accountability Office, Japan, managed trade, Mike Pence, multilateral trade agreements, North Korea, Robert Lighthizer, semiconductors, South Korea, tariffs, Trade, Trump, U.S. Trade Representative, U.S.-Japan semiconductor agreement, {What's Left of) Our Economy

Comments made by Vice President Pence on his Asia trip concerning America’s trade relations with Japan and South Korea show both the promise and peril of the Trump administration’s approach to international commerce and globalization. Major gains for the economy are possible from negotiating a bilateral trade agreement with Japan and revamping what Mr. Pence described as a failed deal with South Korea. But first, the president and his aides must show more awareness than to date of why accords with countries like these keep failing.

According to candidate Trump, and President Trump, the main problems with such measures have been, variously, incompetent U.S. negotiators, dominance of the policy process by offshoring and similar interests, and a mistaken preference for multilateral arrangements over bilateral deals where America’s leverage is less likely to be watered down.

The second reason for failure cited above has certainly shaped U.S. trade agreements with super low-cost countries that have been tempting locations for production and job offshoring, and that have revealingly comprised the vast majority of trade deals initiated and signed by Washington since the early 1990s. But footloose multinationals have played a much smaller role when it comes to higher income countries like Japan and South Korea. There, achieving better results for the American domestic economy has faced two leading obstacles.

The first has been widely noted: the longstanding tendency of the U.S. leaders to elevate geopolitical aims like strengthening security alliances over economic aims like removing distortions to trade flows. Here, strangely, the administration has been giving off mixed signals lately. The president is now clearly treating the security-related objective of gaining more Chinese cooperation in resolving the North Korea nuclear weapons crisis as a higher priority than combating the numerous predatory Chinese trade policies that have hurt domestic employers and their workers. But he blasted such priorities as recently as last month. And the Pence statements indicate that trade and security issues will be handled on separate tracks for Japan and South Korea.

The second obstacle has been less widely noted – although it’s been a major theme of mine: Opening markets in highly protectionist countries like those Asian powers is fiendishly difficult, at best. As I’ve written, these economies are most accurately seen as nation-wide systems of protection and mercantilism. The particular form taken by any of their trade barriers or subsidies at any given moment matters much less than the underlying intent to manage trade flows to their advantage. In addition, these protectionist systems are run by powerful bureaucracies whose secretiveness and agility makes even identifying problematic practices – much less combating them – excruciatingly difficult.

The bottom line is that trade agreements with such countries are virtually impossible to monitor and enforce effectively, and because their governments know this, the provisions are violated routinely.

By contrast, because the U.S. government is so transparent, almost of America’s trade barriers and subsidies are easy to identify and attack, and American compliance with trade agreements is easy to measure. So it’s easy to see how these agreements strongly tend to create more (and more strongly guaranteed) access to the U.S. market than vice versa. This new report from the U.S. Government Accountability Office shows how these damaging results can stem from multilateral agreements, but the Korea deal spotlighted by Spence and a long string of agreements with Japan show the similarly dismal record of bilateral arrangements.

That’s not to say that worthwhile trade deals with Japan and South Korea are impossible. But they’ll require thinking that’s much further outside the box than the administration seems to be engaged in. The best possibility would be going the managed trade route. That is, rather than accept unverifiable promises to dismantle trade barriers or end subsidies, America’s interlocutors would commit to allot specific shares of their domestic markets to specific U.S.-origin goods and services. There’s even a precedent for this practice – the 1986 semiconductor trade agreement reached between Washington and Tokyo.

Managed trade of course isn’t free trade. But little about Japanese and South Korean policies fits the definition, either. And the history of the semiconductor deal is well known by President Trump’s choice to head the U.S. Trade Representative’s office, Robert Lighthizer, because he was personally and deeply involved.

Another possibility would be to expand one of the few modestly worthwhile leafs from former President Obama’s 2012 trade agreement with South Korea. Precisely because Seoul’s predatory practices in the automobile sector specifically were so difficult to combat via the standard, legalistic procedures used in the dispute-resolution systems in most American free trade agreements (and the international counterpart run by the World Trade Organization), Mr. Obama secured South Korean acceptance of provisions that are especially appropriate in dealings with opaque bureaucracies that prevent significant evidence gathering.

Specifically, if a dispute-resolution panel convened under the agreement decides that Seoul is violating the auto provisions, and the United States restores pre-agreement tariffs on Korean products, it’s up to the Koreans to prove that they’re back in compliance with the treaty before the new tariffs are removed. Even better, however, would be to impose the burden of proof on South Korea, Japan, and similar countries as soon as a complaint is filed.

Yet there’s a strong argument that the very structure of dispute-resolution mechanisms is fatally flawed. Whether the trade agreement in question is bilateral or multilateral, these arrangements treat the United States as an equal party. But given the huge size of the U.S. economy relative to any other trade agreement signatories, and therefore given its status as the paramount prize in any such agreement, this “one country-one vote” set-up is as absurd as it is detrimental to American interests.

Rather than agree to such standard dispute-resolution systems – which invariably result in deadlocks that penalize open economies like America’s – Washington should insist that dispute-resolution votes be allotted more realistically. Basing them on the sizes of the various signatory economies is one obvious formula.

And don’t forget the ultimate America-First trade policy: Dispense with negotiations altogether, or for the most part, and start imposing tariffs on the imports of predatory trading powers, or on all imports (in order to prevent offshore exporters from switching production sites). Of course, that universalism is a big virtue of the border adjustment tax proposed by the House’s Republican leaders. In return, Mr. Trump could offer greater U.S. market access to those countries that prove (after years of good behavior according to exclusively American judgments) that they’re giving American exports a fair shake. This form of unilateralism should have special political appeal for an administration that’s increasingly in need of some big early economic wins.

President Trump (at least the pre-China currency version) has been termed a trade policy disrupter. If he wants to re-earn that label, getting the nation’s Japan and South Korea trade right after decades of frightful losses would be a great place to start.

(What’s Left of) Our Economy: Trump’s Real China Currency Blunder

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airstrikes, alliances, America First, chemical weapons, China, currency, currency manipulation, dollar, exchange rates, North Korea, nuclear weapons, predatory trade, Syria, Trade, trade barriers, Trump, Xi JInPing, yuan, {What's Left of) Our Economy

What was worst about President Trump’s decision yesterday to let China off the currency manipulator hook (for now) was not the scrapping of a long-time campaign promise it represented. What was worst about the decision was its geopolitical rationale – that is, Mr. Trump’s judgment that major Chinese cooperation in reining in North Korea’s nuclear program could be secured if his administration moderates or delays various efforts to counter Beijing’s trade predation.

Nonetheless, some recent developments also presage reasons for modest optimism that a sounder approach to currency manipulation by China (and other countries), at least, will eventually emerge if it becomes clear Beijing is welshing on this deal.

The president’s new China policy makes least sense from a pure negotiating tactics standpoint. After all, what course of action could now be more tempting than for China to keep stringing America along with promises to get tough on North Korea, and even with token actions suggesting that meat is being put on these bones? Think “Charlie Brown,” “Lucy,” and “football.” And how will the president decide that his gamble has failed?

Moreover, Mr. Trump’s own views of China’s clout with North Korea seem confused, at best. On the one hand, the president must (logically) believe that China can make much more of a difference in resolving the North Korea situation than it’s so far chosen to. Why else would he offer China the valuable benefit of better terms of trade than it would otherwise receive? On the other hand, Mr. Trump said in an interview with The Wall Street Journal “After listening for 10 minutes [to Chinese leader Xi Jinping at their summit a week ago], I realized it’s not so easy. I felt pretty strongly that they had a tremendous power [over] North Korea. … But it’s not what you would think.” So here he’s indicating that Beijing can’t help decisively at all.

Related Trump statements point to another major negotiating No-No: Rewarding interlocutors for steps they would take anyway. The president is now on record as stating that Xi “means well and wants to help” on North Korea. But this confidence raises the question, “Why?” It’s of course possible that Chinese policy has entered a new, more charitable phase. It’s more likely, however, that Beijing is becoming increasingly worried about the situation in its next-door neighbor spinning out of control and triggering a conflict that could go nuclear right on its borders.

Indeed, a recent editorial from its own government-controlled press clearly signals that those dire concerns are China’s main motivator: “China…can no longer stand the continuous escalation of the North Korean nuclear issue at its doorstep. Instead of accepting a situation that continues to worsen, putting an end to this is more in line with the wish of the Chinese public.”

Even more revealing, the same editorial made plain as day that official Chinese nerves have been frayed further by Mr. Trump’s willingness to go-it-alone militarily in Syria (when he ordered airstrikes in the middle of his meetings with Xi), by his threat to take a similar course of action against North Korea, and by his dispatch of a powerful American naval force to Korean coastal waters. In other words, the president’s apparent comfort with using force already has caught China’s attention.

Better yet, some concrete evidence of this success has appeared. China seems to be reducing its imports of coal from North Korea – one of Pyongyang’s few major sources of foreign exchange – and it abstained yesterday from voting on a UN resolution condemning Syria’s government for the chemical weapons use that prompted the U.S. cruise missile attack. Until then, China had vetoed similar UN resolutions. Why, therefore, would Mr. Trump sweeten the supposed deal further with trade breaks?

At the same time, these latest Trump decisions are sending signs about the president’s national security strategy and overall priorities that are equally disturbing. Principally, during his campaign for the White House, Mr. Trump displayed a keen awareness of the burgeoning nuclear risks being run by the United States by maintaining its defense commitments in East Asia. In numerous remarks that were pilloried by an ossified bipartisan American foreign policy establishment, candidate Trump quite sensibly suggested that the United States should transfer much of this risk to the local countries (like China) most directly threatened by the North Korean nuclear program. Yesterday, Mr. Trump endorsed America’s longstanding Asia strategy even though the North can increasingly call the U.S. nuclear bluff on which regional deterrence has been based with forces of its own that can strike American targets.

Even more striking, Mr. Trump’s new quid pro quo has demoted policy options that can deliver major economic benefits to his core voters and the entire U.S. economy (more trade pressure on China) back to their longstanding position subordinate to national security strategies that primarily help other countries (the Asian allies covered by the American nuclear umbrella). Far from the type of America First strategy he touted during his campaign and especially in his Inaugural Address, these new Trump moves add up to an America Last strategy.

All the same, Trump’s new approach could set the stage for improved U.S. anti-currency manipulation strategies should circumstances require them. Although unmistakably disheartening to many trade policy critics, this latest American China currency decision was defensible on its own terms. It’s true that substantial evidence continues indicating that China’s yuan is significantly undervalued versus the U.S. dollar – and still enables producers in China (including those owned by or linked with U.S. and other foreign-headquartered companies) to offer their goods for artificially low prices in markets around the world. Nonetheless, it’s also true that China has permitted its (surely dollar-dominated) foreign currency reserves to drop by about 25 percent since 2011 – largely because it’s been selling those reserves and buying yuan in order to curb worrisome capital flight. In other words, Beijing has been trying to support the yuan versus the dollar, and keep its value higher than it would be were it freely traded.

Yet there’s absolutely no reason for trade policy critics – or the U.S. government – simply to conclude that ambiguous circumstances simply force America to accept the status quo. In fact, such shoulder-shrugging would amount to rewarding China currency cheating that the conventional wisdom now admits lasted for years, and whose cumulative effects continue to undercut the price competitiveness of domestic U.S. manufacturers and other producers.

So what to do? According to at least one press report, the Trump administration is considering revamping currency manipulation policy in ways that would appear to abandon the current, blinkered approach in favor of one that takes these cumulative effects into account. Specifically, a Reuters article last week suggested that one option that’s attracted the administration’s attention would involve lengthening “the time period for reviewing currency market interventions from 12 months to several years, capturing more past interventions by China….” At least logically, this shift would signal recognition that the impacts of these interventions (to suppress the yuan’s value) are dynamic, and long-lasting.

Even better, however, would be to recognize that, important as it’s been because of its effects on prices across the Chinese economy, currency manipulation is only one form of trade predation practiced by China, and that such individual policies can easily frustrate current legalistic countermeasures by virtue of the powerful and secretive Chinese bureaucracy’s ability to turn them on and off at will – often with little more than a phone call. More important, China has successfully used these ploys in the past. And P.S.: Other Asian economies are just as skilled as China’s at pulling off these scams.

In other words, the various mercantile measures used by China and others to distort markets are completely fungible. Dealing with them effectively therefore requires Washington to become much more agile and flexible in response. And the critics need to stop focusing so tightly on currency manipulation and keep the much bigger, more important China and global trade picture in mind.

For the entire U.S. economy has a big stake in the Trump administration putting these changes into effect before Chinese and other countries’ trade predation sucker punches even more of its most productive sectors – whether they interfere with the president’s new North Korea strategy or not. So, in all likelihood, does Mr. Trump’s political future.

Making News: Podcast of Laura Ingraham Show Interview on Trump China Summit On-Line Now

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China, Making News, national security, North Korea, The Laura Ingraham Show, Trade, Trump, Xi JInPing

I’m pleased to announce that the podcast of my interview this morning on Laura Ingraham’s nationally syndicated radio show is now on-line.  Click on this link for a great discussion of President Trump’s summit with Chinese leader Xi Jinping, and what it could mean for America’s national security and economy.  My segment begins at about the 25-minute mark.

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

Our So-Called Foreign Policy: A Genuinely 21st Century Approach to Asia

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alliances, allies, Asia, China, Cold War, coupling, defense spending, East Asia-Pacific, extended deterrence, free-riding, Japan, Lifezette.com, North Korea, nuclear weapons, Our So-Called Foreign Policy, South Korea, Trade, trade surpluses, Trump, Xi JInPing

Yesterday in a piece for Lifezette.com, I argued that President Trump should ignore the advice he seems to be getting from his more establishmentarian advisers, and from conventional thinkers outside his administration, and focus on economics and not security when he meets Chinese leader Xi Jinping starting tomorrow.

Today, I’d like to spell out some of the assumptions about America’s priorities in the East Asia-Pacific (EAP) region that lead to these conclusions – and why genuinely bringing America’s grand strategy in the region into the twenty-first century is essential to reduce the nation’s vulnerability to nuclear attack and to strengthening its economy.

First, as I’ve long maintained, since the Cold War has been over for nearly three decades, the geopolitical basis for the current American approach to the EAP has simply disappeared. Until 1990, Washington provided a nuclear umbrella for the region and set up alliances for two main reasons. First, the United States was determined to keep Asia’s vast economic power and potential out of communist hands. Second, America resolved to prevent Japan from needing to conduct an independent foreign policy – which U.S. leaders believed would lead to its rearmament and likely reversion to 1930s- and ’40s-style militarism.

Since 1990, America’s goals have remained essentially the same, but one of the rationales shifted. Preventing Japanese rearmament was still (secretly) treated as an imperative. But with the Soviet threat gone and China increasingly integrated into the world economy, the United States began justifying its continued military presence as essential for buttressing the stability needed to keep the region’s economically dynamic countries functioning as major cogs of an increasingly close-knit global trade and investment system. Also reinforcing regional stability would be the continuing protection of South Korea from its bellicose northern neighbor.

The most dangerous problem with this approach is that, although it arguably made sense from the U.S. standpoint when America’s main actual and potential rivals in the region either had no nuclear weapons (North Korea), or vastly inferior and relatively primitive nuclear forces (China), it has become ever more suicidal more recently. For whereas once Washington could credibly brandish a nuclear threat to keep powerful enemy conventional forces at bay while incurring almost no risk of nuclear retaliation against the American homeland, the Chinese and even North Korean have now made major progress towards fielding nuclear weapons both capable of reaching American shores and of surviving U.S. nuclear attacks. As a result, they can now place American cities in mortal danger.

To modify a common Cold War-era saying, Washington has promised to sacrifice Los Angeles in order to save Seoul and/or Tokyo. Has anyone explained to the American people why this potential tradeoff is remotely acceptable – or even sane? Quite the contrary. A literally suicidal strategy keeps getting dressed up in terms that sound either comfortingly technical and abstract (like “extended deterrence”) or even warm and fuzzy (like “coupling”).

Indeed, the latter phrase, upon examination, reveals what has now become by far the least forgivable aspect of American strategy given current nuclear circumstances: The “coupling” of America’s security to its allies’ security was designed to force the United States to risk nuclear attack to protect Japan and South Korea. This aim was accomplished mainly by stationing major American forces right along the North-South Korea border – the Demilitarized Zone – to ensure that they would die during a North Korean invasion and thereby give an American president no real choice but to respond with nukes. The presence of the U.S. Seventh Fleet in Japanese bases and on patrol through regional waters serves the same purpose. That is, the United States surrendered one of the paramount goals of genuine national security since the Atomic Age began – the power to choose whether to involve itself in a nuclear war, or to avoid one. And Washington stubbornly clings to this strategy even though the nuclear landscape has been decisively transformed.

Two related developments make Washington’s acceptance of this risk even less acceptable. First, America’s Asian allies have become more than capable of defending themselves from their enemies. Yet even South Korea, with a possibly deranged dictatorship for a neighbor, has understandably decided to rely on American blood and treasure for its security, and skimped on its military spending. And although Japan has increased its own defense budget and capabilities significantly in recent years, its far greater economic power still justifies the label “free rider.”

Second, precisely because current nuclear circumstances make the American defense guarantee so literally non-credible despite the coupling strategy, the likelihood of Japan and South Korea acquiring nuclear weapons for their own defense rises with each new North Korean missile test and each new Chinese thrust into the South or East China Seas. In other words, if that train hasn’t already left the station, its engines are firing up.

There is, however, an immense silver lining that the supremely unconventional President Trump – unlike many of his advisers – should be quick to recognize: Because the Cold War threats are gone, and because the whole of the EAP relies so heavily on net exports – especially to the United States – for its growth, America no longer needs to worry about a foreign power controlling the region politically.

This development is of course most relevant to America’s China strategy. It means that even if Beijing established unquestioned hegemony in its backyard, China and all of its supposed new vassals would still desperately need to access the U.S. market. The flip side of this proposition is just as crucial: America’s paramount interests in the EAP are economic – ensuring adequate access to Asian markets, and safeguarding American domestic businesses and their employees from predatory Asian trade practices. Further, the best way to achieve these goals is by wielding economic, not military, power.

A U.S. China and Asia policy reflecting these trends – and other generally ignored regional realities that increasingly have been staring obtuse establishment analysts in the face – would make for a dramatically different agenda for this week’s China summit than has apparently been laid out. For example, President Trump has indicated that he will press China’s Xi harder to use his leverage on North Korea to curb or even end the latter’s nuclear weapons program, threaten to attack the North militarily if China doesn’t step up, but ease up on trade pressure if Beijing goes with the American Korea program.

Far better would be for Mr. Trump to recognize that this position raises the prospect of accepting continued Chinese trade predation as long as China even holds out the prospect of providing a North Korea assist; that even if North Korea’s nuclear weapons can’t hit American territory yet, a war with its regime could terribly bloody America’s conventional forces in the Pacific along with allied civilian populations; and that whatever nuclear threat to the United States faces from the North stems not from any intrinsic desire to attack America, but from continued U.S. military involvement in a decades-long Korean civil war that has only been suspended since 1953.

Modernized American priorities would enable the president eventually to tell his Chinese counterpart that the United States is greatly lowering its military profile in Korea, and that however China decides to deal with its dangerously predictable neighbor will be fine with Washington. But since both the Chinese and especially American allies would need time to prepare for this transition, and since a premature announcement would only embolden North Korea, Mr. Trump should simply downplay the subject at the summit, convey these messages privately as soon as Xi leaves, and let the transition begin before going public. A similar approach should be taken toward territorial disputes in the East and South China seas.

Having freed himself to focus on trade and other economic issues, the President should tack away from the conventional wisdom in this sphere, too. Specifically, he should acknowledge that the main lesson of long years of U.S. China trade diplomacy is that there’s no longer any point in negotiating trade agreement with Beijing. The Chinese record of breaking their promises is too long, and even an administration determined to monitor and enforce trade deals would face a formidable challenge in keeping track of conditions in China’s gargantuan industrial complex.

Instead, Mr. Trump should keep the discussion general and thank Mr. Xi for coming such a long way. Then once all the photo-op moments are finished, and he’s departed, the administration should develop a list of Chinese goods that represent especially egregious examples of trade predation (either in the Chinese market or the U.S. market, and impose unilateral tariffs on them. The president should specify that the list will keep growing until he receives reliable information that the Chinese have not only dropped trade barriers, but have compiled a serious track record of keeping them low – which will of course take several years to demonstrate. He should make clear that his own administration will be judge, jury, and court of appeals for any Chinese claims of compliance. And he should then let Mr. Xi know that he’s looking forward to their next meeting – and would of course be happy to come to Beijing.

Making News: New Lifezette Column Calls America-First Approach Key to Trump China Summit Success

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Asia, China, foreign policy establishment, Lifezette.com, Making New, national security, North Korea, Trump, Xi JInPing

I’m pleased to announce the publication of my latest op-ed article:  a column on Lifezette.com that previews this week’s summit between President Trump and Chinese leader Xi Jinping.  The piece, which you can read at this link, argues that Mr. Trump and the United States will achieve the best results if the president rejects promptings from the foreign policy establishment (including some of his own top aides!) to stay the course on America’s security-focused Asia strategy. Instead, it urges the president to return to the America-First economics and trade emphasis that marked his campaign.

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