Our So-Called Foreign Policy: America’s Latest China Spy Conviction Might Not Even Be Tokenism

Tags

aircraft, Aviation Industry Corporation of China, AVIC, avionics, China, Clyde V. Prestowitz, FBI, Gary Locke, GE, General Electric, Justice Department, manufacturing, Obama administration, Our So-Called Foreign Policy, spying, tech transfer, technology

Sorry, but I only gave a cheer or a cheer-and-a-half upon learning on Friday that a Chinese national was convicted in a federal court of trying to steal “trade secrets” relating to a key aviation technology from General Electric (GE).

Don’t get me wrong – it’s great that this spy was caught. But anyone knowing anything about the relationship between way too many other U.S.-owned advanced manufacturing and information technology companies and China would surely be asking why Beijing even bothered to send him into the field. Because the amount of sophisticated technology – and even clearly defense-related knowhow – that such companies have transferred to China voluntarily has clearly been more than enough to help the People’s Republic narrow the military gap with the United States substantially. (See, e.g., this piece I wrote for Bloomberg.com from 2013.) 

And even though the Justice Department says GE was working with the FBI to catch Yanjun Xu, it’s been a prime culprit. Notably, as recounted by long-time U.S. trade official and Asia watcher Clyde Prestowitz in his outstanding recent study of Sino-American relations The World Turned Upside Down, in November, 2009, the company announced the merger of its avionics division with China’s Aviationcons Industry Corporation (AVIC) and headquartering the new entity in Shanghai.

As Prestowitz explained, the deal was bad enough from a U.S. economic standpoint because standard commercial considerations had nothing to do with the resulting offshoring of high value manufacturing and employment. Instead, GE recognized that it wouldn’t be selling much in the way of avionics to China unless it made lots of them in China. In other words, it was victimized by extortion.

But the national security implications were even worse. For avionics are the electronics systems used in aircraft and missiles, and AVIC isn’t just another aerospace company, but an organization owned and controlled lock, stock, and barrel by the Chinese state, and one that has a “monopoly on military aircraft manufacturing and maintenance.” So it had to be clear from the get-go that any breakthroughs in avionics generated by GE would ultimately be available to AVIC and deployed in weapons that could well be used against American soldiers, sailors, and pilots in a future conflict between the two countries. Yet good luck trying to find any federal government opposition to the transaction. You won’t.

Indeed, when the new arrangement was formalized in 2011, the signing ceremony was attended by Gary Locke, former President Obama’s Commerce Secretary – who apparently didn’t even blink an eye when GE proudly declared that the new venture “will develop and market integrated, open architecture avionics systems to the global commercial aerospace industry for new aircraft platforms. This system will be the central information system and backbone of the airplane’s networks and electronics and will host the airplane’s avionics, maintenance and utility functions.”

And apparently Locke – and Obama – were just fine with GE’s avowed aim of developing with AVIC “a world-class engineering organization” with “the JV itself…creating new IP [intellectual property] and new technology.”

I guess they thought that the technology for developing civilian avionics and military avionics are fundamentally different, and that AVIC’s interests are purely commercial.

The technology that Yanjun Xu was seeking isn’t avionics-related. It has to do with engine parts made from composite materials – which the Justice Department says “no other company in the world has been able to duplicate.” And GE’s cooperation obviously means that the company wants to maintain ths monopoly over all actual and potential competitors, including from China.

But since it succumbed to blackmail over avionics, it’s far from a sure bet that it will keep drawing a line in the sand on composites – or anything else. Indeed, as the company boasts, its cooperation with AVIC on “technical training, manufacturing, spare parts distribution, and…maintenance and overhaul” for engines is already substantial. As a result, it’s equally unlikely that American regulators will be able to keep this knowhow in American hands.

The American journalist Michael Kinsley once famously wrote that “the scandal isn’t what’s illegal, the scandal is what’s legal.” You don’t need to look much further than GE’s deep, longstanding, and officially sanctioned ties with China’s state-run aerospace industry to see how right he was.

Following Up: Why the Fauci-Lied Charges Look Stronger than Ever

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Anthony S. Fauci, CCP Virus, Congress, coronavirus, COVID 19, EcoHealth Alliance, Fauci, Following Up, gain-of-function research, James Comer, Lawrence Tabak, National Institute of Allergy and Infectious Diseases, National Institutes of Health, NIAID, NIH, Obama administration, Rand Paul, science, virology, Wuhan lab

If Anthony S. Fauci hasn’t been lawyering up already to defend himself against charges that he lied to Congress in denying that he U.S. National Institutes of Health (NIH), for which he’s worked for so long, ever funded dangerous gain-of-function (GOF) research in a Chinese virology lab, he definitely should be now.

For unless he’s gotten a God complex from all the CCP Virus era adulation he’s received, and assumes he’ll never be held accountable for his actions by mere mortals’ systems of government, Fauci – who also serves as President Biden’s chief medical advisor – must recognize that the NIH just made clearer than ever to lawmakers not only that statements of his earlier this year to Republican Senator Rand Paul of Kentucky were false, but that he knew at the time they were false.

As a post of mine on July 22 explained, although Fauci made his denials twice this year in response to questions from Paul, facts that were undoubtedly at Fauci’s disposal stated otherwise. Principally, the public record shows that at least three research grants approved by the NIH branch headed by Fauci (the National Institute of Allergy and Infectious Diseases – NIAID) sponsored research at the Wuhan Institute of Virology that plainly fell under the U.S. government’s official definition of gain-of-function – which is the only definition that Fauci, a federal employee, should care about in connection with his official work.

More important, from a legal standpoint, in an article detailing its findings, one team of recipients explicitly described its work at “GOF.” Similarly, in a February, 2020 email exchange, both Fauci and a senior colleague showed that they were well aware that of this research. The concern stemming from the grant that they discussed was not whether this description was correct or not, but whether or not this research took place when it was still permitted by federal regulations.

That’s obviously important, but as I noted, it has nothing to do with the lying to Congress charge. For that’s not what Paul asked. He asked whether NIH had ever paid for such work in China at any time. And even more important, Fauci was surely aware both of these emails’ contents, and of the original grant. OK – it’s conceivable that he had forgotten all of this when first questioned by Paul. But it’s inconceivable that by the second appearances (at which he was given the chance to walk back his denial), he hadn’t done his homework.

It was against this background of legitimately indisputable facts that the NIH finally issued a statement that seeks to clear the air about its connection with the Wuhan lab. The statement, which came in the form of an October 20 letter from NIH Principal Deputy Director Lawrence Tabak to Kentucky Republican Congressman James Comer, doesn’t explicitly comment on Fauci’s statements. But although it does insinuate that no one at NIH is to blame for any Wuhan-related confusion on the part of Members of Congress, it keeps him in hot water nonetheless.

For not only does it leave those indisputable facts completely undisputed. It makes two relevant claims that quickly dissolve under even casual scrutiny.

The first centers on Tabak’s allegation that the contractor in question, the New York City-based EcoHealth Alliance, violated the terms of its grant by failing to notify anyone at NIH that some of the experiments it helped conduct in Wuhan created an engineered version of a bat coronavirus that infected human cells ten times faster than the natually occuring version of that virus. According to Tabak, “EcoHealth failed to report this fining right away, as was required by the terms of the grant.”

That’s on EcoHealth, of course. But if it was concealing information from NIH, then doesn’t that mean that Fauci’s denials to Paul, however inaccurate, simply stemmed from ignorance and not a desire to mislead? Unfortunately for Fauci, no. Because as NIH recently told The New York Times, EcoHealth didn’t simply fail to report these results “right away.” The organization was two years late. And since this revelation came only this past August, Fauci must have known of its tardiness this past May and July, when he expressed his flat denials to Paul. In other words, Fauci knew he lacked all the facts needed to support his statements. But he made them anyway. And the difference between such statements and a deliberate falsehood is what, exactly?

Tabak’s second Fauci-relevant claim is even more easily dispensed with. It raises the question of defining gain-of-function research once again, and emphasizes that EcoHealth’s work “did not fit the definition of research involving enhanced pathogens of pandemic potential” – and therefore wasn’t prohibited under the prevailing regulations governing GOF research – because the bat coronaviruses being used “had not been shown to affect humans.”

Yet this argument still leaves Fauci with several big problems. First, as I wrote above, recipients for one of the NIH grants for Wuhan work stated explicitly that they were engaged in GOF research. Their results were published in November, 2015 – which means that at least part of the research was performed after October, 2014, when the Obama administration ordered a three-year pause in such work.

Plainly this evidence flatly contradicts Fauci’s insistence that NIH-funded GOF research took place in Wuhan. So does a comparison of the grantees’ description of their project and the Obama administration’s definition of the kind of work that was not to be supported:

“[R]esearch projects that may be reasonably anticipated to confer attributes to influenza, MERS, or SARS viruses such that the virus would have enhanced pathogenicity and/or transmissibility in mammals via the respiratory route.”

Moreover, “The research funding pause would not apply to characterization or testing of naturally occurring influenza, MERS, and SARS viruses, unless the tests are reasonably anticipated to increase transmissibility and/or pathogenicity.”

The pause was lifted at the end of 2017, and replaced with a review process that would allow funding gain-of-function research under certain conditions. As you can see, there are lots of them. Indeed, there are so many that Fauci (who was doubtless involved in the drafting) could be forgiven strictly speaking if he concluded that he’d gotten pretty close to a green light for resuming NIH funding for all manner of GOF work.

But it’s crucial to remember that Paul never asked Fauci whether NIH had ever funded GOF research in China that was legal at the time. He asked him whether NIH had ever funded GOF research in China – period. And nothing in the post-pause GOF funding guidelines changed the 2014 official definition of GOF – the definition that was controlling for Fauci and other federal employees. All the new guidelines did was stipulate when GOF research anywhere could be legally funded.

Nor did Tabak’s letter do anything to help Fauci on this score. Although he’s correct in noting that the new guidelines don’t proscribe research with pathogens with no record of infecting humans, this qualification is contained nowhere in the still-operative official U.S. government definition of GOF – which covers enhanced infectiousness and transmissibility in all mammals.

There’s a third claim made by Tabak that actually doesn’t directly bear on Fauci’s guilt or innocence, but very nicely illustrates why the NIH deserves absolutely zero credibility on CCP Virus origins issues. That’s the claim that EcoHealth didn’t mislead anyone, either, however late it was in keeping the agency informed. That’s because the organization supposedly didn’t expect the results it got.

As Tabak wrote (though, as with the rest of his letter, he oddly he didn’t specifically link this point to th e Fauc-lied controversy), “As sometimes occurs in science, [the much greater infectivity etc of the engineered viruses] was an unexpected result of the research, as opposed to something that the researchers set out to do.”

Yet it’s obvious that the researchers – and the NIH itself – expected that they might display some enhanced capability. Why else would the agency have instructed EcoHealth to “report immediately” a ten-fold-or greater increase in its infectiousness – or any increase in its infectivity?

Tabak also apparently left on the table another suggestion that EcoHealth and NIH (and by extension Fauci) should be let off the hook on substantive grounds (in terms of conducting and supporting gain-of-function research) in addition to NIH (and by extension Fauci) should be let off procedurally (because of EcoHealth’s failure to report its results promptly: It’s the suggestion that because the gain-of-function results were unexpected, that the relevant experiments weren’t about gain-of-function in the first place.

What, however, could be more absurd? For example, scientists began trying to develop a polio vaccine in the 1930s. They didn’t succeed until 1953. Can anyone seriously believe that the failed efforts don’t qualify as polio vaccine research? Ditto for the long string of failures to develop an AIDS vaccine. Or a U.S. rocket that could lift a satellite into space. Or the story of practically every scientific discovery or progress in engineering, or for that matter in the social sciences.

It’s true that Fauci could have easily and truthfully answered Paul’s questions with a statement along the lines of the following in speaking about the post-gain-of-function pause experiments: “At the time of this work, government guidelines permitted NIH to support GOF research in China and everywhere else if its review process determined that such work was justified, and that determination was in fact made.”

That’s not, however, what he said – evidently because his top priority wasn’t factual accuracy, but ensuring that neither he nor NIH could be tainted by association with supporting potentially dangerous research in China – which would have further exposed he and NIH to charges of dreadful judgment (considering their lax attitude toward reporting deadlines and the underlying decision to work with a foreign regime with a long history of keeping secrets and spreading information.

More important from the Fauci-lied standpoint, though, is that there’s no way he could have answered the questions about the pre-pause research truthfully without admitting that NIH had indeed funded some GOF work at the Wuhan lab.

And there’s a final point that needs to be mentioned:  Is the Tabak letter the best that NIH can do to exculpate Fauci of the lying charges and all concerned of  allegations of whopping misjudgement? If so, I’m doubly convinced that Fauci specifically should be seeking legal aid. If you’re still a fan, feel free to send your suggestions to:

Dr. Anthony S. Fauci

Director

National Institute of Allergy and Infectious Diseases

5601 Fishers Lanes, MSC 9806

Bethesda, Maryland 20892-9806

Im-Politic: Another Possible Biden-China Connection

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Biden Center for Diplomacy and Global Engagement, Bill Clinton, China, Clinton Foundation, Clinton Global Initiative, Department of Education, Hillary Clinton, Hunter Biden, Im-Politic, Joe Biden, National Legal and Policy Center, NLPC, Obama administration, University of Pennsylvania

Remember the Clinton Foundation and the Clinton Global Initiative? Because these ostensibly charitable endeavors set up by the former President and the former First Lady, Secretary of State, and 2016 Democratic presidential candidate turned out to be such blatantly income-padding and pay-to-play schemes, contributions have dried up dramatically under the glare of public scrutiny and since Hillary Clinton’s 2016 loss, and her White House run was clearly undermined by the evidence of access selling.  (Here’s a good account of its offenses and its demise. And according to this report, the latest figures show that the Foundation has negative cash flow.)

Although practically unreported by the Mainstream Media, apparent President-elect Joe Biden has his own group of foundations, and the refusal of one in particular to disclose information about its budget and donors raises major questions about Biden’s own possible grifting – especially with regard to China. It’s the Penn Biden Center for Diplomacy and Global Engagement.

The Center describes its mission as engaging University of Pennsylvania “students and partners with its faculty and global centers to convene world leaders, develop and advance smart policy, and strengthen the national debate for continued American global leadership in the 21st century.” Although affiliated with the University, the Center is run out of a Washington, D.C. headquarters.

Given its lofty goals, you’d think that the Center would be eager to showcase the funders helping to achieve them – and that the funders would be just as eager for the good publicity. But not only is no information publicly available either about the Center’s budget or its donors. The Center has stonewalled requests for the names and numbers. And so has the University, to which it’s referred reporters.

What is publicly known, though, is a big problem, because a private watchdog organization called the National Legal and Policy Center (NLPC) has discovered, by combing through U.S. Department of Education Records, that the University as a whole began receiving many more donations from Chinese sources once the Biden Center’s establishment was announced in 2017.  Indeed, these contributions increased greatly once the Center opened its doors in Washington in February, 2018 and continued after Biden announced his presidential bid on April 25, 2019. Moreover, in clear violation of federal law, more than 40 percent of the $54.05 million in 2018 and 2019 Chinese contributions came from anonymous sources.

Now as surely known by many RealityChek regulars who follow U.S. politics closely, the NLPC is a decidedly conservative group that’s no friend of Biden or any Democrats or liberals. At the same time, if you doubt these numbers, you can verify them for yourself (as I did) by examining the data base on Foreign Gifts and Contracts to U.S. higher education institutions maintained by the Education Department. (The link to database can be found at this Department website.)

Throughout the presidential campaign, Biden and his aides brushed off questions about his son Hunter’s business dealings with Chinese individuals and entities (all of which are controlled in various ways by the Chinese government) clearly based on his strategy of cashing in on the Biden name. Moreover, many of these relationships date from Biden senior’s years as Vice President, when he helped formulate an Obama administration China policy rightly described as squishy. And the Trump era deals took place during a period when a Biden 2020 presidential run was always a distinct possibility. 

In addition, the entire Biden family’s finances are known to have been shaky until his Vice Presidency ended, and that Hunter has been identified as the main Biden family breadwinner during the lean years. 

It’s bad enough that so many gaps in this record remain. Even less excusable is the unexamined (except by the NLPC) evidence of large anonymous (as well as identified) Chinese contributions linked at least chronologically to a Biden organization.  Both the Biden Center and the University could answer the crucial question – how much of the Penn China money found its way to the Biden Center –  instantly by opening up their books. Why won’t they?

Glad I Didn’t Say That! What Could Have Gone Wrong with Offshoring?

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Clinton administration, coronarivus #CCP Virus, COVID 19, Glad I Didn't Say That!, globalization, health security, Larry Summers, manufacturing, Obama administration, offshoring, supply chain, Trade, Wuhan virus

“Why can’t the greatest economy in the history of the world produce swabs, face masks and ventilators in adequate supply?”

–Former Clinton administration Treasury Secretary and Obama administration top White House economic adviser Larry Summers, March 21, 2020

“There are those today who would resist the process of international integration; that is a prescription for a more contentious and less prosperous world. We should not oppose offshoring or outsourcing.”

–Former Clinton administration Treasury Secretary and Obama administration top White House economic adviser Larry Summers, June, 2011

(Sources: Summers Twitter feed, https://twitter.com/LHSummers/status/1241329121768230912 and “At World BPO/ITO Forum 2011, iRise CEO Stresses Need for Transformational Thinking Among CIOs,” Business Wire, August 25, 2011, https://www.businesswire.com/news/home/20110825006115/en/World-BPOITO-Forum-2011-iRise-CEO-Stresses. Specia acknowledgements: John Greener and Mike Cernovich)

Im-Politic: The Latest Trump CCP Virus Fake News

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

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

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

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

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

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

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

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

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

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

TIME continues:

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

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

And as for the Obama record:

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

Not exactly a model of foresight.

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

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

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

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

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

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

Im-Politic: Why It’s Time to Probe the Bidens

Tags

Burisma, corruption, election 2020, Hunter Biden, Im-Politic, impeachment, Joe Biden, Lindsey Graham, Mykola Zlochevsky, Obama administration, The New Yorker, Trump, Ukraine, Viktor Shokin, Yuriy Lutsenko

Yesterday morning, South Carolina Republican Senator Lindsey Graham made clear his determination to investigate the activities of Hunter Biden in Ukraine. That’s good news for two closely related reasons. First: The decision by the son of former Vice President and current Democratic presidential candidate Joe Biden to work for a big, politically connected company in that notoriously corrupt country was pretty central to the recently concluded (for now?) Trump removal effort, and there are still lots of loose ends that need tying up.

Second, no one has yet adequately explained why Biden Junior continued to earn tens of thousands of dollars monthly from Ukraine energy company Burisma, and why the company remained in business, for the entire time that Senior was supposedly pushing hard on behalf of the top stated Obama administration priority of ending the graft and similar abuses that had long hampered Ukraine’s economy and transition to real democracy.   

Junior’s lucrative service on Burisma’s board strongly influenced the impeachment effort because of the major role it played in spurring President Trump to seek Ukraine’s help in probing a matter that was certain to affect the Biden Senior’s chances of winning the White House. 

The President and his supporters claim that looking into the Bidens was justified because the big bucks Junior he made from Burisma at the least looked like a classic conflict of interest, and at the most could have corruptly influenced American policy while Senior was running the Obama administration’s operations toward the country on a day-to-day basis.

And as I’ve noted, far from Senior’s presidential candidacy justifying shielding him from official scrutiny, it actually calls for special attention – unless Americans aren’t supposed to care that a future chief executive might be in some foreign oligarch’s hip pocket. That would be quite a position to take for those who have portrayed President Trump as Russian leader Vladimir Putin’s compromised puppet. The Biden connection of course logically also warrants similarly special Trump attention to Burisma, rather than to Ukraine’s many other unmistakably corrupt entities.

For their part, Trump opponents insist that the President was simply trying to smear a possible rival in this fall’s general presidential election.

It’s true that impeachment and removal supporters leveled other Biden-specific charges at Mr. Trump – for example, attacking his decision to use his personal lawyer, former New York City Mayor Rudolph Giuliani, as his main Ukraine sleuth, rather than going through standard Justice Department channels. But the first Article of Impeachment, the one alleging abuse of power, focused tightly on the claim that the President endangered America’s national security (by delaying military aid needed for Ukraine’s defense against Russia) for personal gain (improved reelection chances).

In this regard, the President’s opponents have noted that there’s no evidence indicating that the Ukraine policy of Biden Senior and the Obama administration permitted Junior’s job to influence American statements or actions. Indeed, they maintain that throughout his time as Ukraine point man, Senior championed exactly the kind of Ukraine corruption fighting efforts that threatened whatever dirty work they acknowledge Burisma was up to. And specifically, they point to Senior’s demands – clearly, by the way, reflecting U.S. policy –  that Ukraine fire a prosecutor thought to be soft on corruption and replace him with someone they considered truly committed to cleaning up the system – including the situation at Burisma.

But this is where the pro-Bidens story gets fuzzy, at best. The reason? Because more than four years after Biden demanded the canning of Ukraine Prosecutor General Viktor Shokin, and after Yuriy Lutsenko came on the job, Burisma is still open for business. Moreover, the co-founder widely fingered as its corruption mastermind, Mykola Zlochevsky, is still in charge. The only price the company has paid for its alleged misdeeds was a small ($7 million) fine for tax evasion. And this four-year period of course includes the year-plus that passed between Biden’s December, 2015 ultimatum and the Obama administration’s last day in office.

As a result, Junior was paid handsomely (some $83,000 monthly at least for some period of time, according to this Reuters report) from the time he joined Burisma (in April, 2014) till his departure (August, 2019). When was Senior put in charge of Obama administration Ukraine policy? Early 2014. And Mr. Trump’s opponents truly believe that there’s “nothing to see here”? And that it’s not the slightest bit fishy about Senior huffing and puffing about corruption in Ukraine but never actually blowing that house down (or at least actually denying Ukraine the $1 billion in international loan guarantees – including to the energy sector of which Burisma was a part – he threatened to cut off unless Shokin was pink-slipped) – which left Burisma free to keep stuffing Junior’s bank account?

Then add in this tidbit from The New Yorker (not a publication often favorable to Mr. Trump). In an article leaving no doubt that Senior had long been financially stressed despite his political prominence, author Adam Entous reported, “Hunter saw himself as a provider for the Biden family; he even helped to pay off Beau’s law-school debts.”

Therefore, it’s easy to see how it would have been easy for Senior “to deal with Hunter’s activities by largely ignoring them” – as stated in the New Yorker piece linked above.  Except he didn’t just ignore them.  His aides actively rejected numerous attempts by Obama administration officials to raise concerns about the subject – including by Geroge Kent, one of the State Department officials who testified at the House Intelligence Committee’s impeachement hearings.  That sounds like they worked for someone who actively didn’t want to know.   

It’s still possible that Senior was simply an ineffective Ukraine corruption fighter when it came to Burisma, rather than one who was conveniently indifferent. But since that question remains unanswered, since Senior is still running for the White House, and since Junior’s dealings with China during Senior’s Vice Presidency also seem to have contributed to the family’s considerable rise in net worth (see that above-linked New Yorker story for these details, too) how could anyone reasonably object to the proposition that it’s time to probe the Bidens?  

(What’s Left of) Our Economy: Trump Tariffs Evoke Summers Snake Oil

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Al Gore, China, Clinton administration, current account surplus, Emergency Committee for American Trade, exports, FDI, Financial Times, forced technology transfer, foreign direct investment, General Motors, intellectual property theft, Larry Summers, Obama administration, offshoring lobby, tariffs, Trade Deficits, Trump, {What's Left of) Our Economy

Larry Summers doesn’t like President Trump’s China trade policies – that’s not news. After all, he served in senior economic policy posts both in the Clinton administration, which proudly championed expanded trade with China and laid the groundwork for the PRC’s entry into the World Trade Organization, and in the Obama administration, which less proudly but nonetheless effectively coddled much of the Chinese trade predation (including intellectual property theft) that even most globalization cheerleaders now admit is a major problem.

Newsier are two arguments Summers made yesterday in the Financial Times that indicate how dishonest years of justification of the China trade policies by globalist U.S. administrations have been, and how clueless they remain.

The dishonesty entails Summers’ dismissive treatment of China’s intellectual property “extraction” (as he calls what is usually and rightly recognized as “extortion”) from U.S. and other foreign companies that are forced by Chinese policy into joint venture partnerships with Chinese entities. According to Summers, this form of theft is no big deal for Americans because these episodes

“typically involve cases where the company in question produces for China in China and so have little impact on US employment. In many cases a substantial number of the company’s shareholders are foreign and it pays taxes to many governments. It is more than a little ironic that an administration that condemns outsourcing should make standing up for those who move production to China so central a priority.”

As should be clear to anyone who has followed U.S. trade policy toward China and other offshoring-friendly countries, that’s a heckuva way to describe the outbound American investment that’s been encouraged by the trade deals and related policy decisions enthusiastically supported by Summers and his White House bosses.

For especially during the Clinton years, when so many of these policies were put in place, the construction of American-owned factories, labs, and similar facilities in China was depicted not as activity that would substitute for American exports, or for U.S.-based production (in the form of goods shipped from these factories to the U.S. market), but as activity that would benefit the domestic American economy and its workers by supercharging U.S. exports – which would comprise much of the content of these foreign-made products.

Here’s a typical example from a 1998 report by the (Offshoring Lobby-funded) Emergency Committee for American Trade:

“American companies with global operations ship the large majority — between 60 percent and 75 percent — of total U.S. exports. Their foreign affiliates are important recipients of these exports; their share has increased to over 40 percent today.”

And let’s not forget one of the showcase examples of such Clinton-era investments – General Motors’ 1997 agreement with a Shanghai-run entity to produce autos in China. GM gushed that the joint venture would generate billions in American auto parts exports to China, and the importance attached by the Clinton administration to such deals was made clear by the decision to send Vice President Gore to the PRC to attend the signing ceremony. (Neither GM Chairman John Smith nor Gore mentioned that the agreement’s provisions mandated that the factory achieve 80 percent Chinese content levels within five years.)

Now, according to Summers, these joint ventures don’t significantly benefit the American domestic economy at all. Of course, there’s still the matter of how this Chinese tech theft – including from world-leading U.S. companies in cutting edge industries – will affect America’s innovation and technology futures. But these critical issues don’t seem to be on Summers’ screen.

The author’s cluelessness is evident from his insistence that

“it is wrong to say nothing has been achieved through negotiation with China. Only a few years ago, China’s current account surplus was the largest relative to GDP among significant countries….Today China’s global surpluses are far below past US negotiating targets of a few years ago….”

Here’s the (glaringly obvious) problem. During the current economic recovery, China’s total trade surplus with the United States (including its services deficit) jumped by 75 percent – from $219.47 billion in 2009 to $385 billion in 2016 (the last year for which such figures are available). Can a piece from Summers expressing his astonishment that so many U.S. voters opted in 2016 for a candidate promising to look after “America First” be far behind?