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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China’s Heavy 5G Hand in the Classroom: Combining its Social Credit Score with the latest IT by 2020


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

By Victor Mair, Ph.D.

Students at a training center prepare to take part in the art test of a College Entrance Examination. They placed their mobilephones on a platform in advance of a mock exam on January 1, 2016 in Xi’an, Shaanxi Province of China. The mobilephone has become seen as a ‘must have’, an item of necessity among the Chinese people and China as the world’s largest country is now recognised to have the most mobilephone users. Credit: VCG via Getty Images

I recently had a good, long talk with a young American who is teaching at a major Chinese university on behalf of a top American university.

He kept saying that life in China now is becoming more and more “intense” (he repeated that word many times).  The politicization of life is felt in countless ways.

He said that the Communist Party Secretary of his school marched into his classroom one day without announcing it ahead of time and without even saying anything to him when she barged in.  She started inspecting everything he’d written on the blackboards and that the students had written in their notebooks.  She had her camera out and was taking pictures the whole while.

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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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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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Remove Duterte And Modernize The Armed Forces Philippines

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

By an Anonymous Filipino

Troops pledge their allegiance to the Philippine government and constitution during a prayer rally in Camp Aguinaldo, Quezon City suburban Manila on May 3, 2010. Photo: Jay Directo/AFP/Getty Images.

This is a critical time for the Philippines, in terms of economics, politics, and national defense. Immediately at the start of President Rodrigo Duterte’s term the congress was already submissive to him. There were just a few dissenting Senators. But Duterte is taking them down one by one, especially the opposition stalwarts. Senator Leila de Lima was accused of a sham case, conspiracy to commit illegal drug trading (1), and is now in prison. Senator Antonio Trillanes is having his amnesty revoked [2]. Duterte is under criminal investigation, breaking the Constitution, running the Philippines into the ground, and gradually giving our sovereignty away to China. The Armed Forces of the Philippines (AFP) is slowly losing its allies and competitive edge against China, the Philippines’ biggest threat. Duterte should immediately be removed, and the AFP should seek the help from its traditional allies to quickly modernize.

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Trade Strategy is a Proper Part of National Security

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

By William R. Hawkins

Chinese-chartered merchant ship Cosco Shipping Panama crosses the new Cocoli Locks during the inauguration of the Panama Canal expansion in Panama City on June 26, 2016. A giant Chinese-chartered freighter nudged its way into the expanded Panama Canal on Sunday to mark the completion of nearly a decade of work forecast to boost global trade. Photo: JOHAN ORDONEZ/AFP/Getty Images.

On June 4, the Koch brothers (Charles and David) announced the launch of a “multi-year, multimillion-dollar” campaign against the tariffs and trade restrictions imposed by the Trump administration; especially those levied on China. The billionaire brothers are regularly called “conservatives” because they make large campaign donations to Republican candidates. But they are not conservatives; they are libertarians, a very different breed of cat. And their donations to the GOP are meant to sway the party in their ideological direction, not merely support it. The liberal media tries to tarnish conservatism by placing libertarians on “the Right” even though this is not their intellectual origin. This is done to further the left-wing narrative that “conservatives” are self-interested, greedy individuals who are enemies of organized society and the common good. This is true for libertarians, who doubt the very legitimacy of the nation-state or the “higher” norms of society. Too often they define right and wrong on the basis of whether it turns a profit.

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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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China Swaggers, But Time Not On Its Side

Journal of Political Risk, Vol. 6, No. 1, January 2018

By Arthur Waldron

I have some thoughts about the “year of doom” 2018 that appeared on the web yesterday. They are as follows:

(1) China has undertaken her dangerous policies for internal reasons. That is how China is. She has no pressing or other need for Scarborough Shoal in the Philippines EEZ, for example.

(2) We know (1) is true because Xi Jin Ping goes on an on about loyalty, reshuffles the army, creates the most boring flag raising ceremony in history, and was reported to get in a fight with a general about whether the army should be made national instead of party. Who after all is going to take a bullet for Xi? We need to get to the root of this domestic phenomenon, but how is an almost impossible question.

(3) China’s tactics have sought to win without fighting by overawing small countries (and not-so-small countries, like India and Indonesia) using their awesome military as no more than a threat and their awesome economy likewise. The problems are (a) even the Philippines is not overawed and China is very much on the wrong side of international law and (b) this is important: China overestimates her own achievements. Maoism was a cesspool. She has gotten out rinsed off, and started some large but financially dodgy corporations. Skyscrapers have sprouted and tilted.

Group of People’s Liberation Army (PLA) soldiers in China. Credit: Getty Images.

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