Tag: China

The Great Immigrant Threat

The situation is grim. Dangerous foreigners are streaming into the United States, killing and abducting innocent Americans. They depress the wages of American workers and hurt American businesses. Something must be done about these invaders!

Is this another warning from Donald Trump? Another column by Sean Hannity? The conclusion of another paper from the Center for Immigration Studies?

Nope, it’s a paraphrase of warnings from politicians, unions, and major newspapers from a century ago, about the dangers of Chinese immigrants and other “Asiatics,” as well as the businesses they opened, especially “chop suey houses.” These warnings would be comical if they weren’t so abhorrent.

Consider this, from the Chicago Tribune:

More than 300 Chicago white girls have sacrificed themselves to the influence of the chop suey “joints” during the last year, according to police statistics. … Vanity and the desire for showy clothes led to their downfall, it is declared. It was accomplished only after they smoked and drank in the chop suey restaurants and permitted themselves to be hypnotized by the dreamy, seductive music that is always on tap.

Or this, from the Mixer and Server, a publication of the Cooks’ and Waiters’ Union, an ancestor of today’s UNITE HERE:

View this matter from every angle, without heat or racial prejudice, and the fact stares us in the face that there is a conflict between the American wage-earner and the workers or employers from the Orient. Our Government has been compelled to close its doors to Asiatics in recognition of this fact.

Or this resolution from one of the forerunners of the AFL-CIO:

WHEREAS the evils arising from the employment of white women and girls in establishments owned or controlled by Chinese and Japanese constitute, both morally and economically, a serious menace to society; therefore be it

RESOLVED, That the American Federation of Labor be requested to pledge its best endeavors to secure the passage of a law prohibiting the employment of white women or girls in all such establishments.

China’s War on Free Speech

China’s market economy with socialist characteristics rose from the ashes of Mao Zedong’s failed experiments with central planning. Under that repressive regime, private enterprise was outlawed and individuals become wards of the state. When Deng Xiaoping became China’s paramount leader, he abandoned Mao’s class struggle as the centerpiece of the Chinese Communist Party (CCP) and embarked on economic liberalization. There was hope that greater freedom in trading goods and services would also lead to a freer market in ideas.

That hope was dashed when troops cracked down on protesters in Tiananmen Square on June 4, 1989. Deng’s famous “Southern Tour” in 1992 resumed economic reform—and China has become the world’s largest trading nation—but protectionism in the market for ideas remains intact. Under President Xi Jinping, who advocates globalization but has cracked down on the free flow of information, China has become less free. 

In the just released World Press Freedom Index, published by Paris-based Reporters sans Frontières (RSF), China is ranked 176 out of 180 countries, just a few notches above North Korea—and President Xi is referred to as “the planet’s leading censor and press freedom predator.” In preparation for the 19th CCP Congress later this year, there has been an uptick in the war on free speech. 

U.S.-China Trade Deal Trumps U.S.-China Trade War

Amid increasing tensions between Washington and Beijing over economic and security matters, Chinese President Xi Jinping is in Florida today and tomorrow for meetings with President Trump.  Although economic frictions between the world’s two largest economies are nothing new, the safeguards that have helped prevent those frictions from sparking an explosion and plunging the relationship into the protectionist abyss may no longer be reliable.

As I noted in this recent Cato Free Trade Bulletin: 

Never have the U.S. and Chinese economies been more interdependent than they are today. Never has the value of the bilateral trade and investment relationship been greater. Never has the precarious state of the global economy required comity between the United States and China more than it does now. Yet, with Donald J. Trump ascending to power on a platform of nationalism and protectionism, never have the stars been so perfectly aligned for the relationship to descend into a devastating trade war.

What are those safeguards and why might they no longer be reliable?

First, U.S. multinational business interests that used to favor treading lightly with China, and provided a policy counterweight to U.S. import-competing industries advocating protectionism, have grown disillusioned by the persistence of policies that continue to impede their success in Chinese markets. Many think a more aggressive posture from Washington, even if that makes matters worse for them in the short run, is overdue.

Second, the pro-China-trade lobbies in Washington have grown sheepish in their advocacy on account of an economic study that went viral last year, ascribing massive U.S. jobs losses to trade with China, and because many fear political retribution from challenging Trump’s assumptions.  Full-throated support for the relationship has become conditional support.

Third, now more than ever before, U.S. policymakers, media, and the public are less inclined to look at the bilateral economic relationship in isolation from the strategic and geopolitical aspects of the relationship.  Segregating the issues in the past allowed us to focus on the win-win elements of trade, where there was broad enough agreement that mutual benefits could be derived, without being distracted by the issues where the United States and China are less likely to agree.  Today, our economic frictions are viewed through the prism of our geopolitical differences – and that makes trade disputes more difficult to manage.

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Withdrawing from TPP Was a Senseless Act of Wanton Destruction

Earlier today, demonstrating his preference for action over reason, President Trump signed an executive order to officially withdraw the United States from the Trans-Pacific Partnership agreement. On the one hand, it’s refreshing to witness the rare act of a politician fulfilling a campaign pledge. On the other hand, there is nothing else good about it. Trump detonated a bomb; six years of negotiations went boom; now what?

To a president who seems intent on turning the country inward, raising the barricades, demanding self-sufficiency, and eschewing the outside world, the TPP was an obvious target. But what’s especially disconcerting is that the president didn’t need to go this far to keep TPP out of play. The agreement couldn’t possibly take effect without congressional passage of implementing legislation, and his signature affixed. He could have just kept TPP on the back-burner in the event that its utility, relevance, or imperative to U.S. economic and geostrategic objectives became evident, as his term progressed. Because it will.

My colleagues and I did a thorough, chapter-by-chapter assessment of the TPP and concluded that, on net, implementation would advance our economic freedoms. But there is also a geostrategic rationale for the TPP that compels beyond the text of the agreement. I presented that case in a few different articles, but here’s an excerpt from the most recent oped, in The Hill

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Is 2016 Over Yet?

By the end of the year, 2016 had accrued a list of international crises, celebrity deaths and electoral shenanigans so long that a spate of articles appeared questioning whether it was the worst year ever, while social media appeared to be primarily filled with people asking “Is 2016 over yet?” But at least in the realm of foreign policy, there’s little hope that 2017 will bring much respite.  

It would, of course, take an extraordinarily narrow view of history to argue that 2016 was really the worst year on record. That would require one to overlook 1942-3, the height of Second World War barbarity, or 1914, the year when the “war to end all wars” began. 1968 wasn’t that great, either, bringing us the assassination of Martin Luther King Jr, the crushing of the Prague Spring, Vietnam War massacres, and a plane accident involving four nuclear bombs.  Or if you want to go back further in history, it’s pretty hard to ignore 1347, the year the Black Death reached Europe.

But 2016 did present an impressive series of foreign policy and political disasters, ranging from a coup in Turkey to Russian meddling in the U.S. electoral process to terror attacks in France, Belgium, and Germany. In the ongoing Syrian civil war, Russian and Syrian government troops finally succeeded in crushing opposition in Aleppo at massive humanitarian cost. And crises that in any other year would have been front page news – like North Korean missile tests or worsening relations between Iran and Saudi Arabia – were sidelined in favor of more urgent crises.

2016 also saw a global surge in populism, with the election of bluntly anti-establishment politicians like Donald Trump and Rodrigo Duterte, and the surprising victory of pro-Brexit campaigners in the United Kingdom’s referendum on the European Union.  Indeed, one of the few positive foreign policy events of the year – Colombia’s peace deal with the FARC, ending a 50-year conflict – was almost derailed when voters rejected the deal at the ballot box.

Unfortunately, it’s not clear that 2017 will substantially improve matters. Many of this year’s crises will in fact carry over into next year: the war in Syria continues apace, Brexit negotiations are ongoing, and North Korea is likely to continue its saber rattling. Worse, some of this year’s less visible crises have the potential to deteriorate further, like the war in Yemen or Venezuela’s economic and social collapse.

More broadly, the overarching trends that defined much of the foreign policy landscape in 2016 look set to continue for the foreseeable future. Populism is likely to impact next year’s key European elections. In France, Marine Le Pen’s National Front looks likely to do well, as does Germany’s Alternative for Deutschland. In the Netherlands, anti-EU sentiment has some speculating that March’s election could precipitate a ‘Nexit’ from the EU.    

The complexity of this year’s crises – and the broader shift towards a more multipolar international system – also looks set to continue. This will create challenges for U.S. policymakers, who may have to seek cooperation with states like Russia or China on key issues at the same time as opposing them on others. And authoritarian backsliding by countries within U.S. alliances, most notably Turkey, raises key questions about what U.S. security guarantees in some areas actually achieve.

Still, as one cliché points out: “Prediction is hard, especially the future.” This pessimistic view of foreign policy in 2017 may well turn out be inaccurate. It simply seems unlikely given the growing global trends which precipitated many of this year’s big foreign policy surprises. Pretty soon, we may be asking if 2017 is over yet. 

No Discernible Rise in Wellbeing? The Data Suggests Otherwise…

Economist Jeffrey Sachs of Columbia University recently made this claim (emphasis mine):

“We’re so rich in our total production and in our capacities to do things that we could solve absolutely fundamental challenges, such as ending extreme poverty or addressing climate change or preserving biodiversity without much effort … it cannot be the most important issue in the world whether the U.S. grows at another 3% or 3.5% or 2.9% a year, when over the last 65 years there’s been no discernible rise in wellbeing

That is the theme of his new book, The Origins of Happiness.

By “we” Sachs appears to mean the U.S. and other rich countries and calls for their governments to engage in wealth transfers to poor countries and a plethora of environmental projects. What he does not seem to realize is that humanity is already making swift progress—through the free actions of billions of individuals—toward ending poverty and better preserving the environment.

Upcoming Cato Discussion on China’s Role in Dealing with North Korea

The United Nations Security Council has approved another round of sanctions against North Korea in response to its latest nuclear test. No one really believes that the new penalties, focused on Pyongyang’s coal and other exports, will have any effect. In fact, it is doubtful that China, which purchases most of the North’s goods, will fully enforce the new resolution.

Still, with most policymakers giving up any hope that the so-called Democratic People’s Republic of Korea will voluntarily negotiate away its nuclear program, Beijing remains the best option for constraining the DPRK’s nuclear ambitions. The People’s Republic of China so far has refused to play its assigned role, but Washington continues to press the PRC to act.

Getting Beijing to take strong action against North Korea is a long-shot, as I explain in an upcoming Policy Analysis, but worth serious effort by Washington. What that would involve is the subject of a forum at Cato at noon on December 8. Susan Glaser of the Center for Strategic and International Studies and Scott Snyder of the Council of Foreign Relations will join me in a panel discussed moderated by Cato Vice President Christopher Preble to discuss the challenges and possibilities of engaging China over the issue.

One thing is clear. Washington and its East Asian allies need to persuade rather than demand that the PRC act. How best to convince Beijing, and what mix of carrots and sticks would be most effective in doing so, will be among the issues discussed on the 8th. I hope you can join us: the details, including where to RSVP, are included here.

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