Tuesday, January 2, 2018

Making China Great Again

For years, China’s leaders predicted that a time would come—perhaps midway through this century—when it could project its own values abroad. In the age of “America First,” that time has come far sooner than expected.

Barack Obama’s foreign policy was characterized as leading from behind. Trump’s doctrine may come to be understood as retreating from the front. Trump has severed American commitments that he considers risky, costly, or politically unappealing. In his first week in office, he tried to ban travellers from seven Muslim-majority countries, arguing that they pose a terrorist threat. (After court battles, a version of the ban took effect in December.) He announced his intention to withdraw the U.S. from the Paris Agreement on climate change and from UNESCO, and he abandoned United Nations talks on migration. He has said that he might renege on the Iran nuclear deal, a free-trade agreement with South Korea, and NAFTA. His proposal for the 2018 budget would cut foreign assistance by forty-two per cent, or $11.5 billion, and it reduces American funding for development projects, such as those financed by the World Bank. In December, Trump threatened to cut off aid to any country that supports a resolution condemning his decision to recognize Jerusalem as the capital of Israel. (The next day, in defiance of Trump’s threat, the resolution passed overwhelmingly.)

To frame his vision of a smaller presence abroad, Trump often portrays America’s urgent task as one of survival. As he put it during the campaign, “At what point do you say, ‘Hey, we have to take care of ourselves’? So, you know, I know the outer world exists and I’ll be very cognizant of that, but, at the same time, our country is disintegrating.”

So far, Trump has proposed reducing U.S. contributions to the U.N. by forty per cent, and pressured the General Assembly to cut six hundred million dollars from its peacekeeping budget. In his first speech to the U.N., in September, Trump ignored its collective spirit and celebrated sovereignty above all, saying, “As President of the United States, I will always put America first, just like you, as the leaders of your countries, will always and should always put your countries first.”

China’s approach is more ambitious. In recent years, it has taken steps to accrue national power on a scale that no country has attempted since the Cold War, by increasing its investments in the types of assets that established American authority in the previous century: foreign aid, overseas security, foreign influence, and the most advanced new technologies, such as artificial intelligence. It has become one of the leading contributors to the U.N.’s budget and to its peacekeeping force, and it has joined talks to address global problems such as terrorism, piracy, and nuclear proliferation.

And China has embarked on history’s most expensive foreign infrastructure plan. Under the Belt and Road Initiative, it is building bridges, railways, and ports in Asia, Africa, and beyond. If the initiative’s cost reaches a trillion dollars, as predicted, it will be more than seven times that of the Marshall Plan, which the U.S. launched in 1947, spending a hundred and thirty billion, in today’s dollars, on rebuilding postwar Europe.

China is also seizing immediate opportunities presented by Trump. Days before the T.P.P. withdrawal, President Xi Jinping spoke at the World Economic Forum, in Davos, Switzerland, a first for a paramount Chinese leader. Xi reiterated his support for the Paris climate deal and compared protectionism to “locking oneself in a dark room.” He said, “No one will emerge as a winner in a trade war.” This was an ironic performance—for decades, China has relied on protectionism—but Trump provided an irresistible opening. China is negotiating with at least sixteen countries to form the Regional Comprehensive Economic Partnership, a free-trade zone that excludes the United States, which it proposed in 2012 as a response to the T.P.P. If the deal is signed next year, as projected, it will create the world’s largest trade bloc, by population.

Some of China’s growing sway is unseen by the public. In October, the World Trade Organization convened ministers from nearly forty countries in Marrakech, Morocco, for the kind of routine diplomatic session that updates rules on trade in agriculture and seafood. The Trump Administration, which has been critical of the W.T.O., sent an official who delivered a speech and departed early. “For two days of meetings, there were no Americans,” a former U.S. official told me. “And the Chinese were going into every session and chortling about how they were now guarantors of the trading system.”

By setting more of the world’s rules, China hopes to “break the Western moral advantage,” which identifies “good and bad” political systems, as Li Ziguo, at the China Institute of International Studies, has said. (...)

Xi Jinping has the kind of Presidency that Donald Trump might prefer. Last fall, he started his second term with more unobstructed power than any Chinese leader since Deng Xiaoping, who died in 1997. The Nineteenth Party Congress, held in October, had the spirit of a coronation, in which the Party declared Xi the “core leader,” an honor conferred only three other times since the founding of the nation (on Mao Zedong, Deng, and Jiang Zemin), and added “Xi Jinping Thought” to its constitution—effectively allowing him to hold power for life, if he chooses. He enjoys total dominion over the media: at the formal unveiling of his new Politburo, the Party barred Western news organizations that it finds troublesome; when Xi appeared on front pages across the country, his visage was a thing of perfection, airbrushed by Party “news workers” to the sheen of a summer peach.

For decades, China avoided directly challenging America’s primacy in the global order, instead pursuing a strategy that Deng, in 1990, called “hide your strength and bide your time.” But Xi, in his speech to the Party Congress, declared the dawn of “a new era,” one in which China moves “closer to center stage.” He presented China as “a new option for other countries,” calling this alternative to Western democracy the zhongguo fang’an, the “Chinese solution.” (...)

When Trump won, the Party “was in a kind of shock,” Michael Pillsbury, a former Pentagon aide and the author of “The Hundred-Year Marathon,” a 2015 account of China’s global ambitions, told me. “They feared that he was their mortal enemy.” The leadership drafted potential strategies for retaliation, including threatening American companies in China and withholding investment from the districts of influential members of Congress.

Most of all, they studied Trump. Kevin Rudd, the former Prime Minister of Australia, who is in contact with leaders in Beijing, told me, “Since the Chinese were stunned that Trump was elected, they were intrinsically respectful of how he could’ve achieved it. An entire battery of think tanks was set to work, to analyze how this had occurred and how Trump had negotiated his way through to prevail.”

Before he entered the White House, China started assembling a playbook for dealing with him. Shen Dingli, a foreign-affairs specialist at Fudan University, in Shanghai, explained that Trump is “very similar to Deng Xiaoping,” the pragmatic Party boss who opened China to economic reform. “Deng Xiaoping said, ‘Whatever can make China good is a good “ism.” ’ He doesn’t care if it’s capitalism. For Trump, it’s all about jobs,” Shen said.

The first test came less than a month after the election, when Trump took a call from Taiwan’s President, Tsai Ing-wen. “Xi Jinping was angry,” Shen said. “But Xi Jinping made a great effort not to create a war of words.” Instead, a few weeks later, Xi revealed a powerful new intercontinental ballistic missile. “It sends a message: I have this—what do you want to do?” Shen said. “Meantime, he sends Jack Ma”—the founder of the e-commerce giant Alibaba—“to meet with Trump in New York, offering one million jobs through Alibaba.” Shen went on, “China knows Trump can be unpredictable, so we have weapons to make him predictable, to contain him. He would trade Taiwan for jobs.”

Inside the new White House, there were two competing strategies on China. One, promoted by Stephen Bannon, then the chief strategist, wanted the President to take a hard line, even at the risk of a trade war. Bannon often described China as a “civilizational challenge.” The other view was associated with Jared Kushner, Trump’s son-in-law and adviser, who had received guidance from Henry Kissinger and met repeatedly with the Chinese Ambassador, Cui Tiankai. Kushner argued for a close, collegial bond between Xi and Trump, and he prevailed.

He and Rex Tillerson, the Secretary of State, arranged for Trump and Xi to meet at Mar-a-Lago on April 7th, for a cordial get-to-know-you summit. To set the tone, Trump presented two of Kushner and Ivanka Trump’s children, Arabella and Joseph, who sang “Jasmine Flower,” a classic Chinese ballad, and recited poetry. While Xi was at the resort, the Chinese government approved three trademark applications from Ivanka’s company, clearing the way for her to sell jewelry, handbags, and spa services in China.

Kushner has faced scrutiny for potential conflicts of interest arising from his China diplomacy and his family’s businesses. During the transition, Kushner dined with Chinese business executives while the Kushner Companies was seeking their investment in a Manhattan property. (After that was revealed in news reports, the firm ended the talks.) In May, Kushner’s sister, Nicole Kushner Meyer, was found to have mentioned his White House position while she courted investors during a trip to China. The Kushner Companies apologized.

During the Mar-a-Lago meetings, Chinese officials noticed that, on some of China’s most sensitive issues, Trump did not know enough to push back. “Trump is taking what Xi Jinping says at face value—on Tibet, Taiwan, North Korea,” Daniel Russel, who was, until March, the Assistant Secretary of State for East Asian and Pacific Affairs, told me. “That was a big lesson for them.” Afterward, Trump conceded to the Wall Street Journal how little he understood about China’s relationship to North Korea: “After listening for ten minutes, I realized it’s not so easy.”

Russel spoke to Chinese officials after the Mar-a-Lago visit. “The Chinese felt like they had Trump’s number,” he said. “Yes, there is this random, unpredictable Ouija-board quality to him that worries them, and they have to brace for some problems, but, fundamentally, what they said was ‘He’s a paper tiger.’ 

by Evan Osnos, New Yorker |  Read more:
Image: Paul Rogers