Tariff Benefits Will Exceed Costs When National Goals Are Met

Journal of Political Risk, Vol. 7, No. 3, March 2019 

By William R. Hawkins

US President Donald Trump, with US Congressman Sean Duffy (L), holds a tariff table as he speaks in the Cabinet Room of the White House on January 24, 2019. Trump spoke about the unfair trade practices of China. Credit: MANDEL NGAN/AFP/Getty

A discussion paper published last weekend by the Centre for Economic Policy Research in the UK claimed that the tariffs President Donald Trump has imposed on Chinese products are “causing the diversion of $165 billion a year in trade leading to significant costs for companies having to reorganize supply chains.” The paper was authored by Princeton and Federal Reserve economists, and calls this a “cost” on the U.S. economy. But the basis of their analysis is much too narrow. They do not understand that the “diversion” of trade is a sign that the President’s policy is working. We need to reduce the ties between American companies and an increasingly threatening China. And I have no sympathy if those who sought to profit by helping Beijing’s rise (even if “experts” told them it was a good thing for the world) now suffer transition costs. Trump’s actions were prompted by national security concerns.

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A Chaotic Start: Foreign Affairs in the New U.S. Congress

Journal of Political Risk, Vol. 7, No. 2, February 2019

By William R. Hawkins

US Secretary of State Mike Pompeo (L) meets with Nechirvan Barzani, outgoing Prime Minister of Iraq’s autonomous Kurdistan Regional Government (KRG), in the province’s capital Arbil during a Middle East tour, on January 9, 2019. The eight-day tour comes weeks after the US President announced that the United States would quickly pull its 2,000 soldiers out of Syria, declaring that IS — also known as ISIS — had been defeated. Credit: Andrew Caballero-Reynolds/AFP/Getty.

It is widely held that the direction of foreign policy has shifted almost wholly to the executive branch. The only issue being under which president did this happen? Ronald Regan? Franklin Roosevelt? Woodrow Wilson? Teddy Roosevelt? Or even George Washington as the inherent result of the creation of the presidency itself. The Constitution was created to correct the lack of national leadership in the prior Confederation period when there was only a Congress. But one only needs to look at the first actions of the 116th Congress to understand why a major factor in this evolution of power has been the confusion and institutional flaws that render Congress unsuited for the conduct of international affairs. Its role is limited to being a forum for supporting or opposing the policies set by the Commander-in-Chief.

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THE BATTLE FOR WEST PAPUA

Journal of Political Risk, Vol. 8, No. 1, January 2019 

By Ben Bohane


Supporters carry West Papuan leader Benny Wenda through Port Vila, Vanuatu, during a visit on December 1, 2016. Pacific island countries across the region are growing in solidarity with the West Papuan independence movement, according to the author. Credit: Ben Bohane.

Reports of the Indonesian military using white phosphorous munitions on West Papuan civilians in December are only the latest horror in a decades-old jungle war forgotten by the world. But new geopolitical maneuvering may soon change the balance of power here, prompting regional concern about an intensifying battle for this rich remote province of Indonesia. It is time for the US and Australia to change policy, complementing Pacific island diplomacy, or risk a major strategic setback at the crossroads of Asia and the Pacific.

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Huawei and China: Not Just Business as Usual

Journal of Political Risk, Vol. 8, No. 1, January 2019 

By Douglas Black

A man looks at his phone near a giant image of the Chinese national flag on the side of a building in Beijing, during the 19th Communist Party Congress on October 23, 2017. GREG BAKER/AFP/Getty Images

To the average consumer around the world, Huawei is likely thought of as a Chinese company that makes nice phones — a “Chinese Apple” of sorts. The average American consumer might associate the firm as one that makes nice phones but, for some vague, political reasons, is not trustworthy. As of early December, the average Canadian consumer might recognize Huawei as the company at the focus of some political gamesmanship between the US, Canada, and China. All of these lay-interpretations are indeed valid, but there is a great deal more going on than revealed by a cursory glance. This article is intended as a brief explainer of Huawei’s history and current market position, the importance of the company to the ruling Communist Party and their strategic goals, and the far-reaching implications of the outcome of the arrest of Chief Financial Officer Meng Wanzhou.

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Wall Street Elites Against Democracy? A Case Study in Pro-China Media Bias

Press Reaction to the November 2018 speech by Dr. Peter Navarro, Director of the White House Office of Trade and Manufacturing Policy, was biased in a negative direction.

Journal of Political Risk, Vol. 7, No. 12, December 2018 

By Anders Corr, Ph.D.

U.S. President Donald Trump delivers remarks before signing ‘Section 232 Proclamations’ on steel and aluminum imports with (2nd L-R) Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, U.S. Trade Representative Robert Lighthizer and White House National Trade Council Director Peter Navarro in the Roosevelt Room of the White House on March 8, 2018 in Washington, DC. Trump signed proclamations that imposed a 25-percent tarriff on imported steel and a 10-percent tarriff on imported alumninum. (Photo by Chip Somodevilla/Getty Images)

Dr. Peter Navarro, Director of the White House Office of Trade and Manufacturing Policy, gave a speech on November 9 at the Center for Strategic and International Studies (CSIS) in Washington, D.C. The title of the speech was “Economic Security as National Security”, which Dr. Navarro, a Harvard-educated economist, argues is the maxim of the Trump Administration. After the speech, Dr. Navarro was attacked in the media, but not about his main points. The negative, and one might argue biased, coverage came from the Wall Street Journal, CNBC, the Atlantic, and Director of the National Economic Council, Larry Kudlow, among others. The negative response centered on Dr. Navarro’s controversial claim that Wall Street elites have undue influence on U.S. policy having to do with China.  Tempers were likely frayed at the time due to planning, negotiations and internal maneuvering in advance of a high stakes late November meeting then being planned between Presidents Trump and Xi Jinping at the G-20 meeting in Argentina. Worries were high that lack of progress on at least the outline of an agreement at the meeting could lead to deepening tariffs between the countries, and fears in the financial sector of falling stock markets or even a recession. But the bias and infighting of the attacks were unbecoming of these media outlets, and of Mr. Kudlow, the Director of the National Economic Council.

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