China

As US-Iran tensions rise, America’s sway over its allies is falling. Last week, Major General Christopher Ghika, the British officer second in command of anti ISIS forces in Iraq and Syria, publicly contradicted the rationale behind American troop build-ups in the region. US Central Command was quick to rebuff Ghika, but Britain’s Ministry of Defence supported him. Other NATO allies, too, are balking at confrontation with Iran. Spain has withdrawn a frigate from the American-led, Gulf-bound carrier group. Federica Mogherini, the EU’s High Representative for Foreign Affairs, has called for ‘maximum restraint’. If there is to be a third Gulf War, the US might find itself with fewer friends than in the last.

Ongoing trade talks between American and Chinese officials took an unexpected turn on Sunday: President Trump took to Twitter and announced a plan to impose tariffs on all Chinese imports by Friday. The tariff threat adds urgency to negotiations that will continue on Wednesday, when a Chinese delegation is due to arrive in Washington, DC. The move is a departure from last week when US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer arrived in Beijing to initiate a fresh round of trade talks with China. Despite chronic trade tensions, both sides had sounded optimistic ahead of the meeting. State Councilor Wang Yi, China’s top diplomat, expressed hopes the two sides could ‘reach a mutually beneficial, win-win agreement’.

The Reuters photo could be mistaken for a shot of one of America’s ‘supermax’ prisons, the ones where the most dangerous criminals are held. An endless green security fence, topped with coils of barbed wire, punctuated by soaring octagonal guard towers with 360-degree views, all fronting what looks like a massive concrete wall or side of a building. Yet the Chinese workers walking outside the fence give away the truth. The picture is not of a US prison, but rather a Chinese ‘re-education’ center in vast Xinjiang, in the country’s far west. According to research by the Australian Strategic Policy Institute, there are 28 such massive detention camps in Xinjiang, most built within just the last several years.

‘Russian influence’ is everywhere these days, especially if you’re a liberal. From the White House to Brexit, the Donbass to the Baltics, the specter of Russian expansionism is inescapable in the news. But have Western media identified the wrong zeitgeist? For a malevolent power, Russia is all too conspicuous. Real mastery of subterfuge entails a degree of subtlety. ‘Russia is very aggressive...up-in-your face,’ says Donald N. Jensen, of the Center for European Policy Analysis. ‘China seems to be a bit more discreet...even when it fails, you don’t really know it.’ Chinese meddling may go unnoticed in Europe and North America, but it is more conspicuous in Australia and New Zealand.

Beware the Ides of March. President Trump has indicated that he will defer his promised hike in tariffs on Chinese products to 25 percent until March 1. Stocks promptly went up. ‘If all goes well,’ Trump said on Sunday, ‘we’re going to have some very big news over the next week or two.’ What’s the big deal? Trump, who fashions himself a wheeler-dealer par excellence, is claiming that he, and he alone, can reach the great compact with Beijing that will put an end to its predatory trading practices. China, which continues to smart over the humiliations inflicted upon it by the western powers, including America, during the nineteenth century, has essentially flipped the script, at least if you listen to the hawks around Trump and in the media.

Established in the southern Chinese city of Shenzhen in 1987, it didn’t take long for Huawei Technologies to become a top player in global telecommunications. Since 2012, it’s been the world’s biggest manufacturer of telecommunications equipment. Last year, Huawei displaced Apple as the world’s second-biggest smartphone maker, after South Korea’s Samsung. Active in 170 countries, Huawei matters – to China and to the global economy.Yet there have long been questions raised about the company, starting with the fact that Huawei’s founder and CEO, Ren Zhengfei, is a former senior technologist for the People’s Liberation Army.

Four years ago, Peregrine Worsthorne wrote about his various experiences with American presidents forThe Spectator magazine. He concluded with this anecdote about George H.W. Bush from the mid-Seventies... The only thing I remember about George Bush senior was an exceptional act of kindness. He was then the American representative in Peking — as it was still called — and had asked me to lunch. It was a scorching day. In the course of the conversation I mentioned I was going on to sleep that night in Mao’s favorite village in the south, a place of pilgrimage for the faithful. ‘Don’t forget to take a good overcoat,’ he warned. ‘It’s mighty cold down there.

Know this: It doesn’t matter what happens during what can only be described as ‘dinner diplomacy’ between Donald Trump and Xi Jinping at the G20 — good, bad or breakthrough. That’s because the course of US-China relations — a complex relationship that blends cooperation, competition and geopolitical slugfest — is set in stone. The reasons are obvious. From tensions all around China’s near seas, to the final status of Taiwan, to the flow of hundreds of billions of dollars in trade to an arms race in Asia that will soon feature sci-fi like hypersonic weapons the future is frighteningly clear.

‘Wall Street and Goldman Sachs…here’s the most important thing,’ said Peter Navarro, the White House trade policy pointman, at a Washington think tank Friday. ‘When these unpaid foreign agents engage in this kind of diplomacy – so-called diplomacy – all they do is weaken this president and his negotiating position.’ The factionalism within the White House itself and the in-fighting over Washington’s China policy was on full display. The president’s encouragement of rival camps battling it out has often spilled over into plain view during the first two years of this administration.

Most of today’s political debates are at heart about globalization. Terrorists, tree huggers, and Trumpists have their cultural complaints, but the great wave of Western populism is fueled by economic anger. Owing to the large amount of money that has been printed, financial asset prices have risen. But median incomes have stagnated. There is much truth in the claim that metropolitan elites have prospered, while the unvisited hinterlands have lost out, and much danger in the myth that all stakeholders benefit equally. Has globalization failed? On its economic merits, globalization can stand tall — not through increasing everyone’s income, though it has done this in many emerging economies, but by reducing everyone’s costs.

What started out as one of those trade wars that Donald Trump believes are ‘easy to win’ has turned into a far broader confrontation between the US and China which is set to expand and deepen further. In his no-nonsense manner, the President has brought the era of ‘constructive engagement’ between the world’s two largest economies to a shuddering halt. Gone are the days when successive administrations thought economic growth would make the Chinese and their leaders ‘more like us’. Instead, the last major country ruled by a Communist Party is identified as a strategic competitor whose further economic political and military expansion has to be checked in America’s national interest.

 SydneyFor decades, Australia has been known as ‘the lucky country’. At the end of the world geographically, we are separated from the global troublespots by vast oceans. We have recorded 27 years of uninterrupted growth, partly because of a surge in exports of commodities to China. At the same time, our tough border protection policies boost public confidence in, as John Howard put it, ‘who comes to this country and the circumstances in which they come’. As a result, our politics have not been profoundly affected by the kind of populist forces dismantling established parties across Europe. Nor have we witnessed an anti-globalisation backlash. Not for us any Trump- or Brexit-like insurgencies.

Nobody likes the sound of trade war, and rightly so. China’s new retaliatory tariffs against US products feel like the beginning of something bad: an escalating tit-for-tat trade conflict between the world’s richest countries which could choke the global economy. But there are good reasons to think that, far from being another silly move by a hothead president, Trump’s right about trade with China and that, as he has with North Korea, he is grasping a dangerous nettle that other presidents dared not touch. It may be scary, but it needs to be done. And it’s not just necessary for America, but perhaps the rest of the world as well. China is deeply protectionist, and is rapidly becoming the most powerful country on earth.

At last, some students in the West are campaigning for freedom and democracy. Following years of supposedly rad students banning pop songs about sex, and force-fielding their campuses against offensive speakers, and even expelling certain newspapers from their common rooms as if they were heretical abominations, a group of students has emerged to demand more liberty, not less. They’re Chinese students, studying in Western universities, and the target of their youthful liberal ire is Chinese President Xi Jinping. This week, Xi convinced the annual sitting of China’s parliament, the National People’s Congress, to scrap the two-term limit on presidency. They didn’t take much convincing, by the looks of things.

Why aren’t spy stories sexy anymore? The revelations last year that Beijing destroyed America’s espionage ring inside China a few years ago, including executing a number of US informants, got a brief flurry of attention and then subsided beneath the waves. News reports of American bureaucrats arrested for passing information to the Chinese have also barely raised eyebrows. Now the ex-CIA agent suspected of being the mole that led to the collapse of America’s spy operations in China has been arrested, though on a lesser charge of simply possessing classified information. How long before Americans turn back to Donald Trump’s tweets or the latest #MeToo charges?

The first election day since Donald Trump was elected president a year ago brought a funereal mood to Washington that you could feel on the streets. The swamp, apparently, remains undrained. Elections for governor in Virginia and New Jersey and for mayor in New York City cheered the locals a bit, producing the expected victories for Democrats. Virginia was the most consequential of these. It seemed a harbinger of the next presidential race. The moderate, decidedly un-Trumpian Republican Ed Gillespie was accused of making ‘ugly racial appeals’ — this for expressing the opinion that the statues of Virginia’s Civil War heroes should not be razed in a frenzy of revisionism.