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-CHINA RIVALRY
IN THE TRUMP ERA
WORLD POLITICS REVIEW U.S.-CHINA RIVALRY IN THE TRUMP ERA of 43
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U.S.-CHINA RIVALRY IN
THE TRUMP ERA
A WPR REPORT
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TABLE OF CONTENTS
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America’s China Policy Hasn’t Failed, but It
Needs to be Recalibrated
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It’s Time for the U.S. to Rethink Its
Assumptions About China
13
In Standoff With China, Trump Opts for
Platitudes Over Policy
17
Trump’s National Security Strategy Rachets
Up U.S. Competition With China
21
Is the New National Defense Strategy the
Right Way to Deal With China’s Rise?
25
China’s Naval Buildup Is a Real Challenge to
the U.S. Navy’s Dominance
29
How to Know When China is Pulling Even
With the United States
33
The Ongoing Drama, or Farce, of Trump’s
China Trade Policy
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Did Trump Just Announce a New ‘Aid War’ Editor’s Note All time references are
relative to each article’s publish date,
With China at the U.N.? indicated at the top of the article.
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While the United States Navy struggles to figure out if, how and
when it can expand the size of its combat fleet by 47 ships—a 15
percent increase—China continues to crank out around a dozen
new large warships a year. In May, the busy shipyard in the port
city Dalian put to sea China’s second aircraft carrier, following up
on that milestone two months later by simultaneously launching
two Type 055-class cruisers. With the U.S. Navy being the only
other fleet to operate a large number of vessels of such size and
capability, the pace and scale of production at Chinese shipyards
is a sign of Beijing’s desire for a fleet commensurate with its
perceived status as a great power.
Displacing more than 10,000 tons, the Type 055-class cruisers
are large, multirole warships similar to the U.S. Navy’s high-end
Ticonderoga-class cruisers and Arleigh Burke-class destroyers.
Such warships constitute the backbone of navies focused on
high-intensity naval combat. Even a decade ago, the Chinese
navy had only a handful of ships capable of providing a broad
range of naval combat capabilities over a large area. Until the
early 2000s, most Chinese warships were incapable of even
targeting hostile aircraft more than a dozen or so kilometers
away. Without such vessels, combat success in the South China
Sea and the Taiwan Strait was well out of reach, even against
adversaries far less capable than the U.S. Navy.
Today, by contrast, China has 20 large and modern multirole
cruisers and destroyers in service, with another 10 in the water
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It’s déjà vu all over again. Where’s the beef? And speak loudly,
but forget the stick.
Those were among the clichés that came to mind during the
Trump administration’s China trade policy gyrations over the past
few weeks. Almost exactly a year after Commerce Secretary
Wilbur Ross announced the results of a “herculean” effort to get
a deal with China to boost U.S. exports of energy and agricultural
goods, and six months after Ross announced another set of deals
purportedly worth $250 billion in increased American exports of
natural gas, soybeans, beef and pork, the White House released a
joint statement in which China again promised “meaningful
increases” in imports of U.S. agricultural and energy products.
The chief White House economic adviser, Lawrence Kudlow,
claimed the Chinese had agreed to increase American exports by
$200 billion, but China denied that there was a commitment to
any specific dollar figure.
In exchange for these vague—and recurring—promises,
Treasury Secretary Steven Mnuchin announced that the
administration would not impose tariffs on up to $150 billion in
Chinese exports aimed at Beijing’s unfair trade practices. But after
pushback from Congress and some in the American business
community, harder-line administration officials and eventually
President Donald Trump himself claimed that the threatened
tariffs could still be imposed if Ross does not come back from
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trade deficit with China and to protect U.S. national security. Yet
again and again, China manages to walk away from
negotiations mostly unscathed. The duties on washing
machines, solar energy, steel and aluminum affect a relatively
small amount of bilateral trade. And China had made similar
promises to increase imports of U.S. agricultural commodities
and liquid natural gas on at least two prior occasions. In each
case, the Chinese resisted Washington’s demands to reduce the
bilateral trade deficit by a certain amount, knowing that the
deficit is ultimately determined by macroeconomic factors
beyond their control.
In the latest case, Chinese negotiators refused to specify a
number for the value of increased U.S. exports they would buy,
making it weaker even than the earlier announcements from Ross.
So, déjà vu all over again, only worse. And where’s the beef?
Well, China did carry through on its May 2017 promise to
Ross to open its market to U.S. beef exports, many years after
the World Organization for Animal Health had designated them
as having a negligible risk of BSE, or bovine spongiform
encephalopathy disease—better known as mad cow disease—
and several months after telling the Obama administration it
would do so. After reaching a hardly whopping $6 million
dollars, and 2.6 percent of U.S. beef exports globally, exports to
China fell back to just over 1 percent of the total in the early
months of 2018. At the current pace, it will take years to reach
the $200 million target for beef exports that China promised to
Ross in November.
More fundamentally, promises to increase purchases of U.S.
soybeans, meat and natural gas do nothing to help American
manufacturing, as Trump has promised. Nor do they anything to
address the underlying economic policies that prevent U.S. and
other foreign firms from being able to compete on an even
playing field. The latest White House statement said almost
nothing about intellectual property, for example. And the
administration is now reportedly planning to restore export
privileges if ZTE pays an additional fine and again commits to
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may sell a little more to China. But don’t expect this drama—or
farce—to create many jobs, much less make America great again.
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Was Donald Trump nasty or nice at the United Nations last week?
The answer may depend on whether you listened to his
comments from Beijing or Tehran.
Diplomatic observers expected the American president to
look tough at the annual meeting of the U.N. General Assembly.
Many predicted that he would strike an especially aggressive
tone toward Iran. He didn’t disappoint them, using his U.N.
appearance to celebrate his withdrawal from the “horrible”
Iranian nuclear deal and attack Tehran’s “agenda of aggression
and expansion” in the Middle East.
Yet there was something formulaic about his rhetoric, and he
made no startlingly new threats against the Islamic Republic.
The president even tweeted that he might be open to
meeting his Iranian counterpart, Hassan Rouhani, “someday,”
calling him an “absolutely lovely” man. Diplomats recall how
Trump belittled North Korean leader Kim Jong Un as “Rocket
Man” at the 2017 General Assembly, only to try to forge a
personal bond with Kim this year. Many wonder if Trump will try
a similar routine with Rouhani.
At a minimum, Trump seemed more irritated than angered by
Iran last week. He sat through a Security Council session at which
U.S. allies stood up for the nuclear deal. He did not rebuke them.
This may simply be because Trump and his advisers do not take
the Security Council especially seriously. But it may also be
because the president has bigger diplomatic fish to fry.
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THE U.S. NOW RISKS U.S. officials are now pushing a $60
UPSETTING billion fund to roll back growing Chinese
economic influence in the developing
INTERNATIONAL world. Trump told the General Assembly
COOPERATION OVER of a new aid review to “examine what is
TRADE AND AID IN A working, what is not working, and
STRUGGLE TO GAIN whether countries that receive our
dollars and our protection also have our
ADVANTAGE OVER interests at heart.” The chances that this
CHINA. will turn into a study of whether
developing countries are more pro-
American or pro-Chinese are reasonably high.
Such a process could puncture one of the few remaining
notions about international cooperation that tie the U.N.
together: that everyone believes in aid and development. In
2015, the General Assembly unanimously approved the
Sustainable Development Goals, or SDGs, as a framework for
guiding aid programming up to 2030. These include ambitious
pledges to eradicate extreme poverty. In a period in which the
U.N. has been stumbling dreadfully over security crises like the
Syrian war, this consensus over aid looked like a way to keep a
sense of common interests alive.
Trump is clearly not moved by such ideas. He told the
General Assembly that he would like to focus aid on those who
“respect” America. His administration has already slashed funds
for the Palestinians. The U.S. now risks upsetting international
cooperation over trade and aid in a struggle to gain advantage
over China. These may be even greater threats to the
international system than a conflict with Iran and will create
concern in capitals well beyond Beijing.
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