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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Boycott the Chinese Language: Standard Mandarin is the Medium of Chinese Communist Party Expansion

Journal of Political Risk, Vol. 7, No. 11, November 2018 

By Anders Corr, Ph.D.

These urban traffic signs in English and Mandarin are located in the Chinatown district of Seattle. Consciously preferring the use of traditional characters and Taiwanese Mandarin in the U.S. would be a statement against the Chinese Communist Party and its usage of Standard Mandarin and simplified characters. Interestingly, the characters in these street signs are the same in the traditional and simplified sets.

China is one of history’s most dangerous countries. In August, the United Nations reported that China is holding approximately one million minority Muslims in Xinjiang concentration camps. China supports anti-democratic regimes and terrorist groups worldwide. Its military is seeking to expand its territory in: Japanese and South Korean areas of the East China Sea; Philippine, Malaysian, Bruneian, Indonesian, and Vietnamese parts of the South China Sea; and Indian and Bhutanese territory in the Himalayan mountains. President Xi Jinping has since 2013 increased military spending, hyped China’s nationalism, repressed minorities and human rights activists, eliminated term limits on his increasingly personal form of rule, and extended the geographic reach and individual depth of state surveillance.

Average citizens in democracies who see this trend can feel powerless in response. But there are tools at the disposal of empowered citizens and social movements to encourage, complement and accentuate actions taken by our democratic governments. Both citizen and government action is essential to encourage democracy and democratic elements in China, history’s most powerful totalitarian state.

These tools include consumer boycotts and protests at Chinese embassies, for example. But there is an additional social movement tactic that could powerfully communicate the world’s criticism: a boycott of mainland China’s national language, Standard Mandarin, a combination of the Putonghua dialect spoken in Beijing with simplified characters. Putonghua is also called Modern Standard Chinese, which was promoted since the 1940s, and which the People’s Republic of China (PRC) and Chinese Communist Party (CCP) have zealously promoted since 1956 as a form of increasing state control beyond Beijing. I here call the combination of simplified characters and Putonghua, “PRC Mandarin” or “CCP Chinese”. Taiwan uses traditional characters and speaks a slight variant of Mandarin called Taiwanese Mandarin (Guoyu).

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How China Interferes in U.S. Elections

Journal of Political Risk, Vol. 7, No. 10, October 2018 

By Anders Corr, Ph.D.

US President Donald Trump flanked by Secretary of Transportation Elaine Chao and Stephen A. Schwarzman, Chairman, CEO and Co-Founder of Blackstone. Mr. Trump speaks during a strategic and policy discussion with CEOs in the State Department Library in the Eisenhower Executive Office Building (EEOB) on April 11, 2017 in Washington, DC. Mr. Schwarzman and the Chao family are influential with Mr. Trump, and have extensive business interests in China. Credit: Olivier Douliery-Pool/Getty Images.

China is powerfully influencing U.S. elections, as President Donald Trump alleged, but one will not necessarily find a Chinese intelligence agent stuffing ballot boxes in the local City Hall, or tampering with a voting booth. Facebook and Twitter claim they found no coordinated messages from the Chinese government. Bloomberg news and three digital security firms all claimed they found no evidence of digital or web-based misinformation campaigns. They apparently don’t count China’s ongoing anti-Trump propaganda, available through state-run media like China Daily and radio stations in the U.S. Nor do they count a new China-linked propaganda film advertised on Facebook, called “Better Angels“.

Plus, China’s immense wealth gives it more sophisticated and effective means to influence the general public, districts that voted for Republicans, the candidates themselves, the businesses that fund candidate elections, the universities and think tanks that hire politicians after they leave office, and the news media that voters will rely upon to choose their representatives on November 6, 2018. That is a far more powerful set of tools than anything the Russians used in 2016.

Vice President Mike Pence had it right when he said, “There can be no doubt: China is meddling in America’s democracy.” He said that Beijing was involved in “an unprecedented effort to influence American public opinion, the 2018 elections, and the environment leading into the 2020 presidential elections.”

Perhaps the most powerful influence that China wields over the U.S. public is the leverage that its $8.59 billion in box office sales provides to its “Propaganda Department” in Hollywood. American movie producers and directors actively self-censor in order not to alienate Chinese censors who could cut millions of dollars of ticket sales by denying access to the Chinese market. This leads Russians or terrorists to be the main villains in most Hollywood films, rather than China. Perhaps in part for this reason, 53% of Americans view China favorably according to a February 2018 poll, despite China’s human rights abuse at home, and ongoing economic and military transgression against the U.S. and our allies. That latent pro-China sentiment will make elections more difficult for Mr. Trump and the Republicans on November 6. This is China’s growing soft power, and is only infrequently commented upon in the media.

China’s sharper power to interfere with elections was demonstrated by the country’s recent attempt to use targeted tariffs to cause economic pain in districts that voted for Trump in 2016. In two rounds of tariffs, including over the summer, China hurt states and congressional districts that voted for Trump and other influential Republicans with $110 billion of targeted tariffs, focusing on commodities like soybeans, sorghum and pork that are overwhelmingly produced in rural pro-Trump districts. China also hit whisky, produced in Kentucky, and cranberries, produced in Wisconsin. Senate Majority leader Mitch McConnell represents Kentucky, and House Speaker Paul Ryan represents Wisconsin. “Mapping the counties that voted for Mr. Trump in 2016 and those affected by China’s tariffs shows the extent to which Trump voters’ jobs rely on the products being targeted,” according to the New York Times. “Beijing hopes it can convince those voters — and their elected representatives — that the president’s trade war could hurt them.” China’s counter-tariffs threaten more than double the jobs in districts Trump won in 2016, compared with those that Clinton won.

But China has many other ways to influence voter opinions in the U.S., and thereby interfere with how voters vote. China also does an end-run around voters by influencing the political choices provided at the voting booth, in that most politicians of both parties are influenced to be soft on China by an environment conditioned by Chinese money and giveaways, including to U.S. students, the media, professors, congressmen, businessmen, and even U.S. military officers.

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China’s Targeting of Overseas Chinese for Intelligence, Influence and Drug Trafficking

Journal of Political Risk, Vol. 7, No. 7, July 2018 

By Anders Corr, Ph.D.

Davao City Vice Mayor Paolo Duterte (L), son of Philippine President Rodrigo Duterte, and the president’s son-in-law, Manases Carpio (R), take an oath as they attend a senate hearing in Manila on September 7, 2017.
Paolo Duterte and the president’s son-in-law, Manases Carpio, appeared before the inquiry to deny as “baseless” and “hearsay” allegations linking them to large-scale illegal drugs smuggling. NOEL CELIS/AFP/Getty Images

On June 12, Philippine protesters staged coordinated protests against China in Los Angeles, San Francisco, and Vancouver. Protest organizer Ago Pedalizo said, “Duterte’s government pursues the ‘sell, sell, sell’ approach to sovereignty as a trade-off to all kickbacks he’ll get from the ‘build, build, build’ economic push of China.” His protest group, Filipino American Human Rights Advocates (FAHRA), charged that “Duterte is beholden to the $15-billion loan with monstrous interest rate and China’s investments in Boracay and Marawi, at the expense of Philippine sovereignty. This is not to mention that China remains to be the premier supplier of illegal drugs to the country through traders that include the son, Paolo Duterte, with his P6 billion shabu [methamphetamine] shipment to Davao.” 

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Duterte’s Immigration Agreement with China: Subversion by Numbers

Journal of Political Risk, Vol. 7, No. 6, June 2018 

By Demetrius Cox

A PLA Air Force (PLAAF) military transport plane (IL-76) in Davao City on 8 June 2018. Source: Philippine Plane Spotters Group (PPSG).

“The supreme art of war is to subdue the enemy without fighting.”
― Sun Tzu, The Art of War

On June 9, 2018 the Philippine Star published an article titled “More than 3 million Chinese allowed entry into Philippines since 2016 — Immigration data”.

In what may become one of the most remarkable subversions in recent history, the article describes how the immigration floodgates have been thrown open by Philippine President Rodrigo Duterte.  With a current national population of 103 million, Duterte has allowed a 3% direct population increase (3+ million) of Chinese immigrants to the Republic of the Philippines in less than three years, which is enough to keep most demographers up at night.  And there is no end in sight.

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A Peculiar Chess Game in North Korea《奇怪的棋局》

Journal of Political Risk, Vol. 6, No. 5, May 2018

By Wei Jingsheng (魏京生)

Wei Jingsheng (魏京生) was the most famous Chinese dissident in 1979, when Deng Xiaoping put him on a nationally televised trial for writing the essay, “The Fifth Modernization: Democracy.” He received 15 years in prison. After meeting with President Clinton’s Assistant Secretary for Human Rights in 1993, he was put back in jail for another 14 years. He served 4 years of his second jail term before being exiled to the United States in 1997. A number of points are new in his latest article, published in English for the first time here. In particular, the discussion of China’s President Xi obstructing the Trump/Kim summit has very serious implications for the future of U.S.-China relations, and the credibility of President Xi as an interlocutor in Korean peace negotiations. Wei Jingsheng’s piece was originally published on Radio Free Asia’s blog and dated May 17, 2018. The article, including its Beijing slang, has been translated into English below.

Chinese human rights activist Wei Jingsheng (left) and American politician US President Bill Clinton talk together in the White House, Washington DC, December 8, 1997. (Photo by Robert McNeely/White House/Consolidated News Pictures/Getty Images)

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The Price Of Paramount Power: Xi Jinping’s Ascension Could Make China A Much Riskier Place To Do Business

Journal of Political Risk, Vol. 6, No. 3, March 2018

By Richard Hornik

One of the peculiar pathologies of western businessmen active in China is an almost religious reverence for its lack of due process, enthralled by the combination of free(ish) markets and political stability proffered by China’s Market-Leninism (a term coined by Nicholas Kristoff). What they miss, however, is the price that must be paid for such short-term control, and during the course of Chinese history that price has proven to be very high.

The latest convert to this envy for authoritarian efficiency is Tesla’s Elon Musk who has spoken and written extensively about China’s ability to conceive, approve and build enormous infrastructure projects in a matter of a few years – or less[1].  No zoning rules, environmental regulations, cost-benefit analyses — much less property rights — can stand in the way of the gleaming high-speed rail lines, shiny new airports, massive harbors and 12-lane highways and bridges that have covered the Middle Kingdom in the past two decades. Likewise with housing developments and mega industrial installations like petrochemical plants, steel mills and refineries.

The fact that many of these projects made little or no economic sense and often created enormous capital, environmental and human costs for decades to come does little to take the shine off the power to command society and the economy to do the bidding of a brilliant meritocracy. Japan went on a similar splurge in the last three decades of the 20th century, also directed by brilliant technocrats, ending in two decades of economic stagnation, but at least Japan had its flawed democracy to serve as a break and a safety valve, something missing from authoritarian regimes.

A vendor (R) takes a nap next to posters showing the late Chinese chairman Mao Zedong (C) and Chinese President Xi Jinping (L) at a market in Beijing on May 15, 2016. Fifty years after the Cultural Revolution spread bloodshed and turmoil across China, the Communist-ruled country is driving firmly down the capitalist road, but Mao Zedong’s legacy remains — like the embalmed leader himself — far from buried. Credit: AFP / NICOLAS ASFOURI / Getty Images

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We Need a New Approach to China Even if We don’t Care About Human Rights and Free Trade

Journal of Political Risk, Vol. 6, No. 2, February 2018

By Ho-fung Hung, Ph.D.

Obama era officials Kurt M. Campbell and Ely Ratner recently published “The China Reckoning: How Beijing Defied American Expectations” in Foreign Affairs, arguing US’ assumption underlying its China Policy over the past several decades has been wrong. They admit that China has not changed in the direction most China hands in the US had expected. Rather than becoming more liberal and democratic, it became more authoritarian; rather than more opening to trade, it became more protectionist. They call for a reorientation of Washington’s approach to China. This article has triggered some internal debate and soul searching in the China watchers’ community.

It is understandable that many who expect China to embrace liberal democracy and more economic openness have been disappointed. What is missing in the discussion is that even many realists and corporations who do not care too much about the ideals and principles of economic and political liberalism are frustrated with China too. Over the last few years, another China reckoning is that China is unable, or never intended, to deliver and keep its promises even on many economic and geopolitical issues that are unrelated to the sensitive areas of political reform and change.

Graffiti depicting a portrait of former Chinese leader Mao Zedong with Chinese yuan signs in his eyes, on a wall in Shanghai on March 1, 2017. Source: JOHANNES EISELE/AFP/Getty Images.

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China Grew Up, and Now? Utilitarianism, Democracy and A Moderating Role for the Holy See

Journal of Political Risk, Vol. 6, No. 2, February 2018

By Francesco Sisci

In the past few months, stretching out no longer than a couple of years, an important controversy has mounted in America and the West, in which some argue that we foreigners were fools to believe we could change China. China in the past 40 years, since the U.S. started cooperating with her, taking her under wing, just fooled us and did what it always wanted – remained communist (thus anti-capitalistic) and with a value system different than ours (and thus against our value system). The Holy See, who has proven capable of striking deals in China and also holds a high moral ground in the West, may be able to find a middle way.

Red Guards of the China Foreign Affairs University make a vow with “from Chairman Mao” in hands in front of Tiananmen Rostrum in October, 1966 in Bejing, China. Red Guards were a mass paramilitary social movement of young people in the People’s Republic of China (PRC), who were mobilized by Mao Zedong in 1966 and 1967, during the Cultural Revolution. Source: VCG via Getty Images.

Chinese soldiers march with riot shields outside the Great Hall of the People in Beijing, after the introduction of the Communist Party of China’s Politburo Standing Committee, the nation’s top decision-making body, on October 25, 2017. China unveiled its new ruling council with President Xi Jinping firmly at the helm after stamping his authority on the country by engraving his name on the Communist Party’s constitution. Source: GREG BAKER/AFP/Getty Images.

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China’s Sociopathy, and its Cowardly Watchers

Journal of Political Risk, Vol. 6, No. 2, February 2018

WHAT’S WRONG WITH CHINA
By Paul Midler
227 pp. Wiley. $25.00

Paul Midler’s What’s Wrong With China doesn’t disappoint. Anecdotes, theories, and historical curiosities fall from its pages in answer to its titular question. Midler’s stories of caution are current, enjoyable, accessible, historically grounded, and witty. But the deeper importance of the book is that Midler, as a sharp and knowledgeable outsider to academic China studies, can criticize, revive, and develop theories in a way that staid academics would never dare. In a field careful about even mentioning sensitive topics like Taiwan, Tibet, and Xinjiang, Midler’s latest book is a bulldozer with bumper-stickers to offend almost anyone. Which is why it’s a great read. The field is being shaken up by President Trump’s tweets, President Xi’s disconnect with how his increasingly totalitarian government is perceived abroad, and now by Midler.

Guangdong, China, in 2011. Source: Paul Midler.

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