Calls come as center's director, Biden's secretary of state nominee, undergoes Senate confirmation process
A good-government watchdog is calling on secretary of state nominee Antony Blinken to disclose any foreign-funding sources for the University of Pennsylvania’s Penn Biden Center, where Blinken served as director, as part of his Senate confirmation vetting process.
The National Legal and Policy Center (NPLC) is arguing thatany foreign money that made its way into the Penn Biden Center could pose a conflict of interest for Blinken, who served as the center’s director from 2017 to 2019 and received a more than $79,000 salary, according to his financial-disclosure records. The watchdog group said the university also saw a significant spike in contributions from China after the Penn Biden Center opened in 2017, raising questions about whether the funding had any connection to the policy center.
While President-elect Joe Biden has vowed to tighten ethics standards for his incoming administration, the Penn Biden Center’s lack of financial candor raises questions about the Biden cabinet’s commitment to transparency as Blinken testifies before the Senate Foreign Relations Committee on Tuesday afternoon.
“The Penn Biden Center is the poster child for revolving-door conflicts of interest,” said Tom Anderson, director of the NPLC’s Government Integrity Project. “It’s time they disclose their donors and allow the American people the opportunity to evaluate whether any lines have been crossed.”
The Penn Biden Center was founded by Joe Biden at the University of Pennsylvania in 2017. Biden’s other policy-research institute at the University of Delaware has faced similar criticism over a lack of transparency and has no plans to disclose its donors after the president-elect takes office. Both organizations have served as cabinets-in-waiting, employing former Biden advisers who are now expected to join his administration.
Stephen MacCarthy, a spokesman for the University of Pennsylvania, told the Washington Free Beacon that the Penn Biden Center “is funded entirely with University funds” and doesn’t engage in fundraising.
“The University has never solicited any gifts for the Center. Since its inception in 2017 there have been three unsolicited gifts (from two donors) which combined total $1,100. Both donors are Americans,” said MacCarthy.
MacCarthy declined to discuss additional details of the center’s funding, or the sudden spike in donations from China, on the record.
Foreign contributions to the University of Pennsylvania tripled since the Penn Biden Center’s soft opening in March 2017, rising from $31 million in 2016 to over $100 million in 2019. The largest foreign contributor was China, which significantly increased its gifts to the university after the Penn Biden Center opened.
The University of Pennsylvania took in around $61 million in gifts and contracts from China between 2017 and 2019, according to records from the Department of Education. This was a substantial uptick from the prior four years, when the university received $19 million from China.
Many of the Chinese contributions were listed as coming from “anonymous” sources, according to the university’s disclosure records. Between March 2017 and the end of 2019, the university received a total of $22 million in anonymous gifts from China—a spike from less than $5 million during the preceding four years.
Blinken’s work outside of the Penn Biden Center also involved China and university funding.
Blinken cofounded the consulting firm WestExec, which helped U.S. universities raise money from China without running afoul of Pentagon grant requirements, the Free Beacon reported last month. WestExec scrubbed the details of this work from its website over the summer.
Anderson said his group is preparing to file a supplement to a Department of Justice complaint filed against the University of Pennsylvania last year.
The NLPC’s complaint asked the DOJ to look into whether the University of Pennsylvania or the Penn Biden Center violated the Foreign Agent Registration Act by accepting foreign funding in exchange for promoting the interests of foreign governments. Anderson said the new complaint will include Blinken’s work assisting universities that receive funding from China.
Sen. Robert Menendez (N.J.), the senior Democrat on the Senate Foreign Relations Committee, told reporters that the committee will likely vote on Blinken’s confirmation on Monday.
President Donald Trump cut aid to China by 52 percent over the last year, the Spectator reported Friday.
The United States slashed $32 million in aid to China in fiscal year 2020, from $62 million in 2019 to $30 million, according to an Office of Management and Budget report.
The first government-wide China spending report comes as Trump enters the final days of his presidency. His administration implemented aggressive economic policies against China in an effort to thwart the Chinese Communist Party’s growing influence in the United States and the global market.
Trump campaigned in 2016 on combating Chinese economic policy, which he said “took advantage” of American citizens through trade imbalances and the manipulation of currency values.
The president’s efforts to curb Chinese influence in global politics and markets heated up last year after the onset of the coronavirus pandemic: In July, Trump moved to pull out of the World Health Organization for its failure to hold China accountable for its role in the deadly COVID-19 outbreak. He levied additional sanctions on companies that supported the Chinese military and fought Chinese influence at the United Nations. Additionally, the United States imposed $60 billion in tariffs on Chinese imports during fiscal year 2020.
Trump also cracked down on Confucius Institutes, which are tied to the Chinese Communist Party, for propagating Chinese disinformation at American universities.
Last week, Trump imposed sanctions on two Chinese apps over concerns that Chinese Communist Party officials could use them to collect data on Americans, including federal employees.
President-elect Joe Biden (D.) has criticized the president’s trade war with China. But he could face backlash from Congress if he softens the United States’ stance on Beijing, as politicians on both sides of the aisle support implementing economic measures to punish China for its human-rights abuses and combat the communist regime’s growing influence abroad.
By giving comfort to China's evil regime, the New York Times is showing its true colors.
The New York Times has a long, sordid history of being in bed with brutal authoritarian regimes. From Walter Duranty praising the goodness of the Soviet Union to the Times’ gentle treatment of Adolf Hitler, the paper of record is always on board with tyranny. The current generation of gatekeepers at the Gray Lady is no exception. In a shocking and sickening article this week, author Li Yuan celebrates Chinese “freedom.”
The article beams about how China has gotten its society back to normal after unleashing a deadly plague on the planet and lying about it. They eat in restaurants, they go to movies, and they are free from fear. They have the freedom to move around, the Times proclaims, assuring us this is the “most basic form of freedom.” Really? Do the 1 million Uighurs currently in concentration camps have “freedom of movement”? They must have been unavailable for comment, as they aren’t mentioned once in this advertisement for the Chinese Communist Party.
It would be one thing if the New York Times were dedicated to offering space for a wide range of opinions, even borderline evil ones such as this absurd article offers. But this is the same newspaper that took down a piece by Sen. Tom Cotton because it suggested using the National Guard to protect cities being burned and looted by leftist radicals. That opinion was a bridge too far, but shilling for a regime that does not allow free speech and forces sterilization is just asking questions.
Freedom from fear. My God. Is this what America has become? Are we ready to take the advice of our nation’s most powerful newspaper and throw away our right to speech, religion, democracy, and family in the sad search for some impossible form of perfect safety? The behavior of many Americans during the lockdowns suggests that some are. The rest of us, those who love liberty, must fight back.
It’s not just the New York Times; take a look at this gem from The Economist.
A “more Chinese-style global industry”? What does that mean? Slave labor? It’s efficient, it lowers prices, and the slaves might well be kept free from disease so they live long productive lives doing exactly what their government tells them to do. This is a warning. Those in power in the media, so wedded to big tech and multinational corporations, seem just fine with a world in which you have no freedom and they use your labor to make billions in the name of safety and freedom from fear.
This is America, God dammit, and the New York Times can go to hell. These people have lectured us for four years about Donald Trump supposedly trampling the norms of American democracy, and now they turn around and tell us we should be more like China? This is much more than a culture war at this point. This is a fight for the very soul of the greatest nation on earth — which, even though the Times doesn’t know it, is the United States, not the People’s Republic of China.
Useful idiocy is reaching new heights. China’s hooks are so deeply embedded in our media that it can’t even call out slavery and concentration camps. Meanwhile, in China, printing even a gentle gibe at Xi Jinping can get you killed. Is that the glorious new form of freedom that our betters want for us? Does the New York Times want the government to tell them what to publish? I honestly don’t know the answer to that at this point.
Let us be clear, the Chinese Communist Party is an evil, repressive, and murderous regime. It is not the future of freedom. It is not setting an example that free people should or will follow. And we won’t. Unlike in China, Americans have 400 million guns, and if our government tries to take the New Times’ advice and crush our freedoms, they will hear them roar. This is a time for choosing. This is a time to stand up and say that our rights come from God, not the government or the New York Times. Stand up, America, before it is too late.
In mid-November, the State Department’s Policy Planning Staff — I serve as the director — published “The Elements of the China Challenge.” The paper argues that the core of the challenge consists of the concerted efforts by the Chinese Communist Party to reconfigure world order to serve the CCP’s authoritarian interests and aims. It explains the errors that nourished the hope on both the right and the left that economic liberalization in China, coupled with Western engagement and incorporation of Beijing into international organizations, would bring about China’s political liberalization. It describes the characteristic practices of the communist dictatorship, traces China’s brazen programs of economic co-optation and coercion in every region of the world, examines the Marxist-Leninist dogma and hyper-nationalist beliefs that provide the intellectual sources of the CCP’s quest for global supremacy, and surveys China’s vulnerabilities — both those endemic to authoritarian regimes and those specific to the People’s Republic of China. In conclusion, the paper lays out a framework for securing freedom.
Reaction to the paper has been instructive. The Chinese Communist Party responded with ritual denunciation. In contrast, public intellectuals, scholars, and public officials from around the world have expressed appreciation for the Policy Planning Staff’s efforts to gather in one place the evidence of the CCP’s predatory policies, to distill the party’s governing ambitions, and to sketch a way forward for the United States and all nations dedicated to preserving the free, open, and rules-based international order. The best of the American responses to the paper have coupled praise, in some cases grudging, with strictures, sometimes angry, about the paper’s limitations. The domestic criticisms are especially revealing, both for the serious issues they raise and for the misconceptions that they promulgate.Recommended
“The Elements of the China Challenge” has its origins in Secretary of State Mike Pompeo’s reorientation of the State Department — consistent with the Trump administration’s 2017 National Security Strategy and a number of other administration documents — around the new round of great-power competition launched by the CCP. The administration’s attention to the China challenge does not entail — as many mistakenly suppose — that the United States must turn its back to the rest of the world. To the contrary, the Policy Planning Staff paper stresses that to counter China’s quest for global supremacy, the United States must renew its alliance system and must reform international organizations so that they serve America’s vital interest in preserving an international order that is composed of free and sovereign nation-states and that is grounded in respect for human rights and the rule of law.
Trump administration policy reflects this reorientation. For starters, the administration has led in exposing the CCP’s initial cover up of the COVID-19 pandemic and its subsequent disinformation campaign. The administration intensified efforts to combat China’s massive intellectual property theft. It placed the United States at the forefront of efforts to hold China accountable for gross human rights violations, especially the brutal imprisonment of more than a million Uyghurs in re-education camps in Xinjiang — the United States is the only nation to impose sanctions on CCP officials for these unconscionable abuses. It terminated Hong Kong’s special trading status in the spring, when the CCP crushed freedom in the city. It increased weapons sales to Taiwan, embarked on an inaugural U.S.-Taiwan economic dialogue, and signed a Memorandum of Understanding with Taiwan on health, science, and technology. It invigorated the Quad (Australia, India, Japan, and the United States) and, with its strategy for a Free and Open Indo-Pacific, affirmed the region’s critical importance. It revamped the Development Finance Corporation and reformed the Export-Import Bank to improve the ability of United States and its allies and partners to invest in other nations’ physical and digital infrastructure. And, the Trump administration has convinced more than 50 countries and counting to join the Clean Network, which promises secure telecommunications — unlike the technology offered by Chinese “national champions” Huawei and ZTE, which are CCP extensions whose hardware and software threaten individual privacy and national security.
By stepping back, taking a broader view, and documenting the pattern and purpose of China’s actions, “The Elements of the China Challenge” explains why these policies are urgently needed, and why much more must be done. And by identifying 10 tasks that the United States must undertake — from restoring civic concord at home to, where possible, cooperating with Beijing based on norms of fairness and reciprocity, and to championing freedom abroad — the Policy Planning Staff paper lays the foundations for refashioning U.S. foreign policy to meet the China challenge.
A common theme of the critics, reputable as well as disreputable, is that the paper falls short of the work of George Kennan, a career foreign service officer who in 1947 founded the Policy Planning Staff and became its first director. At the dawn of the Cold War, Kennan’s 1946 “Long Telegram” from Moscow and his 1947 Foreign Affairs article “The Sources of Soviet Conduct” illuminated the threat to freedom posed by the Soviet Union. The most influential documents produced by a State Department official, they served as sources of inspiration for the Policy Planning Staff, but we did not seek to replicate them since, as Kennan well understood, different challenges and moments demand different undertakings and emphases. Above all, today’s Policy Planning Staff learned from Kennan’s insistence on the combination of “ideology and circumstances” that determines great-power conduct, and took to heart his counsel that “to avoid destruction the United States need only measure up to its own best traditions and prove itself worthy of preservation as a great nation.”
As for the disreputable critics, they give no evidence of having read the paper. The Global Times, a daily tabloid and wholly owned subsidiary of the Chinese Communist Party, was first out of the gate. The CCP newspaper dismissed “The Elements of the China Challenge” the day after it appeared as an “insult to Kennan” amounting to little more than “a collection of malicious remarks from Secretary of State Mike Pompeo and other anti-China U.S. politicians and senators.” At his regular press conference the following day, Foreign Ministry spokesperson Zhao Lijian denounced the Policy Planning Staff paper as “just another collection of lies piled up by the those ‘living fossils of the Cold War’ from the U.S. State Department.”
It would have been more accurate to refer to “the living victors of the Cold War,” but more telling still is the CCP’s failure to notice that the Policy Planning Staff distinguishes the China challenge from the Soviet challenge. While underscoring that, like the former Soviet Union after World War II, China today presents the foremost threat to freedom, the paper also stresses the distinct forms of power at work. “The Soviet Union,” the paper argues, “primarily enlarged its dominions and sought to impose its will through military coercion.” In contrast, and notwithstanding its development of a world-class military, China “primarily pursues the reconfiguration of world affairs through a kind and quantity of economic power of which the Soviets could only have dreamed.”
Of the reputable critics, Odd Arne Westad, a Yale history professor and China scholar, is among the most distinguished. In a Foreign Affairs essay titled “The U.S. Can’t Check China Alone,” he asserts that the “report correctly sees China as the greatest challenge to the United States since the end of the Cold War, showing how Beijing has grown more authoritarian at home and more aggressive abroad.” The paper also, according to Westad, “rightly recognizes how China has tried to gain an advantage by applying economic pressure and conducting espionage — as well as by exploiting the naiveté that causes many foreigners to miss the oppressive nature of the Chinese Communist Party.”
Nevertheless, Westad charges, “the report is limited by ideological and political constraints; given that it is a Trump administration document, it must echo President Donald Trump’s distaste for international organizations, even though they are key to dealing with China.” The professor also takes the paper to task on the grounds that it “almost completely ignores the most basic fact about the current situation, which is that the United States can compete effectively with China only through fundamental reform at home.”
A meticulous scholar of Chinese history, Westad imputes to the Policy Planning Staff paper opinions not found there and overlooks arguments it prominently features. It is not true that our paper, as Westad writes, “suggests that it is now in the United States’ interests to destroy and then selectively rebuild existing international institutions.” Rather, the Policy Planning Staff calls for a reassessment of international organizations to determine where they serve freedom and where they no longer advance the objective for which they were created, arguing for reform where possible and the establishment of new institutions where necessary.
Contrary to Westad, moreover, the Policy Planning Staff highlights the domestic foundations of effective foreign policy. Five of the 10 tasks we identify as crucial to securing freedom involve reform at home — from the renewal of American constitutional government and the promotion of prosperity and civic concord to restoring the U.S. educational system at all levels.
Hal Brands, another reputable critic and leading scholar, finds “valuable insights” in “The Elements of the China Challenge.” Despite the juvenile taunt in the title of his Bloomberg op-ed, “There’s No George Kennan in the Trump Administration,” Brands — a professor of international relations at Johns Hopkins University’s School of Advanced International Studies as well as a Bloomberg columnist — writes that the paper “explains, more completely than any prior U.S. policy document, the sources of Chinese conduct — namely the mix of Marxist-Leninist ideology, extreme nationalism and quasi-imperialism that drives the Chinese Communist Party.” In addition, according to Brands, the paper “shows that China’s objectives are not limited to its immediate periphery, but include fundamental changes in the international system”; it “details the troubling aspects of Chinese behavior, from economic predation to Beijing’s menacing military buildup, as well as the deep vulnerabilities — endemic corruption, inescapable demographic problems, economic instability — that threaten its continued ascent”; and it “outlines reasonable steps America should take to strengthen its position.”
Silicon Valley's allies are filling up the Biden administration. A big payoff is sure to follow.
Silicon Valley played an integral role in propelling Joe Biden to the White House. He raked in uncounted millions from liberal tech billionaires such as Netflix’s Reed Hastings, LinkedIn’s Reid Hoffman, and Apple heiress Laurene Powell Jobs; their employees shelled out $5 million more.
As Biden takes office, the techies want what they paid for. Reuters reports that executives at top firms like Amazon, Google, Facebook, and Microsoft are gunning for jobs at the Departments of Defense, State, Justice, and Commerce and also eyeing influential posts at the Federal Trade Commission and beyond.
They want two things: lucrative federal contracts and less scrutiny than they’ve gotten over the past four years, as President Donald Trump has made their bias against conservatives front-page news. The Department of Justice’s antitrust inquiry into big tech has already garnered bipartisan backing, including from a group of state attorneys general who have filed their own suit.
A Biden administration could make all of that go away. And it could ignore altogether these firms’ obsequious dealings with Communist China.
That explains the rush to fill seats: It’s unlikely that the techies moving into the Biden administration will check their business relationships at the door. Each hire is another pressure point for Silicon Valley’s most powerful to exploit.
This is hardly a problem unique to Democrats—you just hear about it less when they’re in the White House. This sort of revolving door was considered outrageous in the George W. Bush administration, when Democrats and the media harped relentlessly on Dick Cheney’s ties to Halliburton and charged that he was in the pocket of Big Oil. They raised the same ruckus when Trump appointed Exxon chief Rex Tillerson as his first secretary of state.
These unseemly connections aren’t new for Democrats. Google employees averaged a meeting a week with that Obama White House, influencing a president who “routinely pushed policy that pleased the tech-savvy.”
Now think what happens with those same lobbyists running the show. After rolling out transition teams free of connections to big tech, Team Biden added several Facebook executives over the Thanksgiving holiday. The transition team “has already stacked its agency review teams with more tech executives than tech critics,” Reuters notes, including “several officials from Big Tech companies, which emerged as top donors to the campaign.”ADVERTISING
Their influence doesn’t stop there. Biden on Tuesday named as an economic adviser Joelle Gamble, who last worked as an investor under eBay founder Pierre Omidyar, funneling funding to outfits run by other Biden appointees. Others may soon follow, like Mark Zuckerberg’s philanthropy chief and former Kamala Harris aide Mike Troncoso.
For just one example of how a problematic connection, consider WestExec, the consultancy cofounded by secretary of state nominee Tony Blinken. The firm helped Google win contracts from the Defense Department and advised Google cofounder Eric Schmidt’s philanthropy. Now, Reuters says, Schmidt is making recommendations for personnel in the Biden Defense Department, a textbook example of business relationships shaping government policy.
That’s just the start of the coming horse trading, hidden behind the Obama-era pretext that the White House is merely cultivating a relationship with the smartest people. But if personnel is policy, the Biden White House will be doing everything it can to comfort Silicon Valley’s most comfortable.
Will China’s negligence unleashing the coronavirus and mendacity exploiting it catalyze a reckoning with the PRC, comparable in significance to the Czech Coup of 1948? And will it crystallize long-term American determination to contest China’s scheme to supplant the United States as the world’s preeminent power? Or will China ultimately emerge as the winner from the devastation it has wrought because of a deficit of strategic and moral clarity within the United States and among our allies?
The answer to these questions depends considerably on the policies adopted by the next president. Start with the good news. Negative views of China have soared to a record high of 73 percent of Americans, according to a Pew Foundation Poll released in late July 20201. Chinese behavior during and since the coronavirus also has elicited strong negative reactions across the Indo-Pacific, especially in Japan, India, and Australia, where views of China’s ambitions and behavior already trended strongly in a negative direction. Even in Western Europe, long committed to engaging and conciliating rather than confronting China, COVID-19 has generated an anti-China backlash, more muted on the continent but stronger in Britain where British Prime Minister Boris Johnson joined President Trump in imposing a complete ban on Chinese 5G vendor Huawei.
Even so, this contingent good news might prove ephemeral rather than enduring if the United States and our allies should waver in the reckoning with China that President Trump deserves credit for initiating. The reelection of President Trump would have offered the best practicable option for building and intensifying the Administration’s first term strategy of contesting China comprehensively and vigorously—a vital condition for bolstering deterrence, or defeating China at the lowest possible cost and risk should deterrence fail. Unlike his predecessor––who “welcomed China’s rise,” who significantly shrank American defense spending while China armed prodigiously, and whose national security statements of 2010 and 2015 omitted naming China or any other great power as an adversary––the Trump Administration designated China from the outset as our number one adversary. The President has not only increased the American defense budget substantially, but invested in threshold technologies such as strategic defense and created an independent Space Force. The President has pushed back hard against China’s implacable economic warfare against us on trade and intellectual property that his predecessors rationalized away. The President’s economic policies before COVID-19 intervened had generated prodigious economic growth on which American military preeminence depends. Trump began, too, the long overdue decoupling of the U.S. economy from China’s, the imperative of which our inordinate dependence on China for essentials such as antibiotics exposed in high relief during this pandemic. President Trump strengthened relationships with a decent democratic India and Japan, vital, value-based allies who share our strategic priorities and alarm about the trajectory of China’s policies at home and abroad—relationships his predecessor, with the support of Vice President Biden, allowed to languish while courting China and other adversaries.
Trump’s recalibration of our China policy that COVID-19 has broadened, deepened, and accelerated is a good start, but only the end of the beginning of what is necessary for the United States and our allies to prevail. For all the considerable merits of President Trump’s approach towards China, the President would enhance the effectiveness of his policies by doing some recalibrating as well. The President’s rhetoric has undervalued the importance of American ideals as well as self-interest in identifying friends, foes, threats, and opportunities. Many Americans who are increasingly alarmed by China rightly advocate calling out China with no pale pastels on human rights, stressing the tyrannical nature of the Chinese regime, while championing the importance of a value-based alliance system of fellow democracies in the Indo-Pacific, grounded firmly in geopolitics. The President’s spokesmen—particularly Secretary of State Pompeo and Vice President Pence—have done much better articulating this dimension of the contest with China than the President, whose actual policies on this and many other issues are often better than he makes them sound. A greater emphasis on human right also may elicit greater support for sterner policies towards China from our Western European allies, where resolve—especially in Germany—is fragile at best even now with disillusionment with China running much higher than usual.
A second term Trump presidency also would run the risk of undermining the significant progress the Administration achieved in the first term if the President decided to settle for a deal rather than staying the course. This temptation is not only organic to President Trump’s nature, but would loom large for whoever became president because of the huge budgetary deficits that COVID-19 has compounded. President Trump’s salutary hectoring our allies to do more—yielding impressive results in Europe his predecessor failed to match—also ran the risk of reaching a culminating point counterproductive to forging a muscular strategic consensus that actively counters China’s ambitions.
With President Trump’s defeat, the odds diminish that China loses more than it gains by unleashing and exploiting COVID-19. Granted, the most recent Pew Foundation Poll found that many Democrats as well as even more Republicans advocate tougher policies on toward China on human rights and trade. An increasing number of prominent Democrats have become rhetorically more willing to criticize rather than conciliate China. Even so, President-elect Biden has a long record of advocating engagement with China while downplaying the idea that the PRC has become a serious strategic rival. The leftward lurch of the current Democratic Party also does inspire confident that a Biden Administration will follow through on President Trump’s policy of robust resistance towards China’s predatory behavior. On the contrary, Senator Biden had moved steadily in a more dovish direction on national security even before becoming President Obama’s Vice President and cheerleading for Obama’s Dangerous Doctrine President Trump has repudiated in its entirety. Neither Biden nor his surrogates said much of anything about China at the Democratic convention despite the urgency of addressing the paramount national security threat of our time.
Will a Democratic Party reluctant to condemn the breakdown of law and order in a growing number of municipalities its leaders have governed for decades—a party seriously considering deep cuts in law enforcement amidst the mayhem—pursue the types of muscular national security strategies essential for credibly reassuring our terrified real and prospective allies in the Indo-Pacific that it is safer to stand up to China rather than to capitulate? Will a party committed to a vast expansion of government domestically—with deficits cascading, taxes poised steeply to increase if President Biden has his way—have the resources much less the inclination to spend enough on defense to counter China’s relentless military buildup aimed at driving the United States out of the Western Pacific? Will a Biden Administration also designate China’s grandiose ambitions and predatory behavior as danger number one? Or will the President-elect and his party revert instead to the default position of President Trump’s predecessor, who considered climate change the paramount gathering danger, envisaging China as a partner in fighting it?
Concluding with an optimistic plausible caveat about the consequences of a Biden victory for our struggle with China, history furnishes ample examples of policies confounding expectations. Recall the Truman Administration’s decision to resist North Korea’s June 1950 attack on South Korea just six months after Secretary of State Dean Acheson seemed to exclude South Korea as a vital interest in his speech to the Washington Press Club in January 1950. Recall, the strategic metamorphosis of heretofore isolationist Senator Arthur Vandenberg of Michigan into a stalwart supporter of President Truman’s policy of vigilant containment. In the immortal words of the Beach Boys, “Wouldn’t It Be Nice” if a Biden Presidency underwent a similar metamorphosis in this direction. It would be a triumph of hope over experience, however, to count on it. This version of the Democratic party has purged itself of all vestiges of the Truman/Scoop Jackson tradition of muscular Cold War liberalism congenial to the President’s hawkishness on China. The party’s political banishment of Former Senator Joseph Lieberman—the last of the Cold War Democrats—sadly attests to that.
May a Biden Presidency, too, be better than it sounds. Otherwise, the COVID-19 pandemic may turn out to be a strange and stinging defeat for the United States instead of a defeat for its perpetrator.
A coalition of conservative leaders has written a letter to House Ways and Means Committee Chair Rep. Richard Neal (D-MA), pointing out that since he had stated the need for investigating criminal wrongdoing by public officials, he should ask for former Vice President Biden’s bank records.
In December 2019, Neal, who had been calling for President Trump to release his tax returns, released eight years of tax records, saying that the move came “in the spirit of transparency, as the chair of the committee with jurisdiction over taxes.”
George Landrith, president of Frontiers of Freedom, Richard Manning, president of Americans for Limited Government, Andrew Langer, president of the Institute for Liberty, Seton Motley, president of Less Government, Horace Cooper, Co-Chairman Project 21, Saul Anuzis, president of 60 Plus, and Dick Patten, president of the American Business Defense Council, began their letter stating:
“Your recent comments about the need to investigate criminal wrongdoing by public officials and the importance of transparency to American government have not gone unnoticed. As you know, allegations of just such wrongdoing and the lack of transparency have arisen over the last two months based on emails found on a personal computer belonging to Hunter Biden — the son of Vice President Joseph Biden — a computer whose authenticity has been established by the FBI.”
After delineating alleged acts by former Vice President Biden, the letter continues, “We hope that you would welcome the chance to assist Vice President Biden in laying to rest any allegations that he was using his office and official travel to influence foreign governments or entities to benefit his son’s businesses. And to answer this question: Was any of that income received by Vice President Biden or other family members?”
A group of conservative activists and leaders is asking House Democrats who have pursued President Donald Trump’s tax returns to demand former Vice President Joe Biden’s bank records, given allegations of overseas business entanglements.
The Hunter Biden laptop story in October revealed that Joe Biden had discussed his family’s foreign business entanglements, despite earlier denials, and that he explored a business venture with a Chinese company in which he was to have held 10% of equity.
House Democrats have tried for years to obtain Trump’s tax returns, going to the Supreme Court in their effort to do so, though they have not had evidence of any crimes or conflicts of interest, but insisting on the need for transparency.
In a press release Tuesday, several conservative leaders released a letter they had sent to House Ways and Means Committee Chair Rep. Richard Neal (D-MA), in which they argued Biden’s bank records were of equal public value:
Your recent comments about the need to investigate criminal wrongdoing by public officials and the importance of transparency to American government have not gone unnoticed.
As you know, allegations of just such wrongdoing and the lack of transparency have arisen over the last two months based on emails found on a personal computer belonging to Hunter Biden — the son of Vice President Joseph Biden — a computer whose authenticity has been established by the FBI.
As you also know, public record has established beyond doubt that vice President Biden repeatedly took his son on official trips to foreign nations and that soon after such trips his son’s companies we’re receiving millions in contracts from government related entities in those nations. Additionally, it is also public record that when one of those companies came under investigation for corrupt practices by a foreign government vice president Biden intervened and forced that government to shut down the corruption probe and fire the prosecutor by threatening to deny the country and its people US foreign aid. This, as you know, is indisputable since Vice President Biden openly boasted on camera about his effectiveness in getting the corruption prosecutor fired.
Now, however, graver questions have arisen about the suspect activities of the vice president and his son. Disclosure of the emails from Hunter Biden’s computer show him speaking openly about paying out money to the rest of the family including his father who was apparently referred to — and these are just two examples— as “the big guy” or someone entitled to his ten percent.
Already, of course, Vice President Biden has a serious credibility problem on this issue, having said flatly that he never discussed such business matters with his son. Evidence from the computer emails as well as testimony from one of his son’s former business colleagues who attended meetings with Vice President Biden show his emphatic denial is now one of the boldest falsehoods ever told an American public life.
In any case, we hope that you would welcome the chance to assist Vice President Biden in laying to rest any allegations that he was using his office and official travel to influence foreign governments or entities to benefit his son’s businesses. And to answer this question: Was any of that income received by Vice President Biden or other family members?
Thus, we hope that in view of your strong demand for transparency and disclosure you will endorse our suggestion that your committee ask for vice President Biden’s bank records and those of the rest of his family over the period of his vice presidency and immediately thereafter. In this way he can put to rest any allegations including concerns about how he acquired his extensive personal wealth and his large estate.
If members of the committee from both sides as well as their legal counsel could be permitted to examine the records and then report to the Congress this would do much to clear the air. Moreover, if you took this initiative as a member of the Democratic House leadership this would do much to show that your interest in full disclosure and investigating corruption extends to members of your own party.
As you know, when these allegations arose during the presidential campaign, media organizations – some of whom still claim they are serious news organizations – rushed to protect Vice President Joe Biden who was their chosen candidate by imposing a news blackout on this information.
But that won’t last now – the public is going to want to know the truth. This is your chance to serve the cause of integrity and transparency in public office as you’ve talked so much about the past few years.
The American people have a right to this information and we are hopeful that you and the Vice President will see the advantage of the full disclosure suggested by our proposal before demands for a special counsel become deafening.
The letter is co-signed by George Landrith, president of Frontiers of Freedom; Richard Manning, president of Americans for Limited Government; Andrew Langer, president of the Institute for Liberty; Seton Motley, president of Less Government; Horace Cooper, co-chairman of Project 21; Saul Anuzis, president of 60 Plus; and Dick Patten, president of the American Business Defense Council.
The president has completed all required financial disclosure forms, declining to release tax returns while under audit. A New York Times article this fall describing his tax returns confirmed he has been under audit by the IRS in a long-running dispute.
Joe Biden’s education transition team lead has a long history of praising China’s school system—a system the Chinese Communist Party designed to indoctrinate students.
Linda Darling-Hammond, a Stanford University professor and the president of the California State Board of Education, has praised the Chinese Communist Party’s education system for its “magical work” in establishing a strong teacher-government presence in student life. In her 2017 book Empowered Educators: How High-Performing Systems Shape Teaching Quality Around the World, she explained the centrality of the teacher to Chinese students’ lives.
“Teachers in China are revered as elders, role models, and those whom parents entrust to shape the future of their children,” Darling-Hammond wrote. “In the Tao traditions of ritual, the phrase ‘heaven-earth-sovereign-parent-teacher’ is repeated and becomes ingrained in how people see themselves holistically governed and supported.”
The Stanford educator failed to mention that any other teacher-student “relationship” could result in imprisonment. The Chinese government continually cracks down on “Western values” in the classroom by sending state-sponsored inspectors to monitor teachers—particularly in higher education—for “improper” remarks. Communist Party leader Xi Jinping has said that China’s schools and teachers must “serve the Communist Party in its management of the country.”
Not serving it can carry steep consequences. In July, for example, Chinese professor Xu Zhangrun was placed under house arrest after he criticized Xi’s handling of the coronavirus crisis. He was subsequently fired from his teaching position at Tsinghua University—one of China’s most elite institutions—after he spoke out against Xi’s removal of presidential term limits.
In her book, Darling-Hammond also praised China for dramatically increasing spending on education. But that money has been unevenly distributed, resulting in persistent inequalities. Sixty percent of rural students drop out by the time they reach high school, and of the remaining 40 percent, only a small fraction take college entrance exams.
Similar disparities apply to teachers—yet in a 2011 Washington Post article, Darling-Hammond lauded China for boosting spending on teachers’ professional development. She also took a “detailed statement” from the Chinese minister of education at face value, in which he claimed that China had allocated “billions of yuen” to improving teachers’ “working … and living conditions.”
Such omissions appear in Darling-Hammond’s Twitter feed as well. In 2018, she tweetedthat the United States had 71 times as many school shootings as China, but declined to note that Chinese crime statistics are notoriously inaccurate. She also ignored the numerous stabbings that plague Chinese schools. In October 2018, a woman stabbed 14 children in a kindergarten class. In April 2018, nine students were murdered at a middle school.
Darling-Hammond has spent nearly her entire life entrenched in Ivy League institutions, beginning at Yale University in 1969. In 2008, she served as the lead for Barack Obama’s education transition team. Darling-Hammond had been under consideration to be Biden’s secretary of education but claimed she was “not interested” in the position, citing her desire to continue working with California governor Gavin Newsom.
The Biden team did not respond to requests for comment.
President Trump is making a post-election push of his MAGA agenda.
An executive order of Nov. 12 cuts off American investments in Chinese “military-controlled” companies, banning them from American stock and investment markets, and from being held in pension fund portfolios, effective in January.
Americans have subsequently been told to divest themselves within a year of their holdings in those stocks and securities as well.
In the wake of this executive order and to little surprise, prices quickly plunged in China and Hong Kong’s stock market.
The ban is a follow-up to this summer’s Pentagon report that listed 31 major Chinese companies doing business in the United States while assisting the Chinese military — which controls those corporations. Congress ordered the list — which is heavy with companies involved in electronics, space and aviation, communications, construction and shipbuilding — to be compiled.
The Defense Department additionally determined that each company “supports the modernization goals of the People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities.”
Trump’s executive order is a blow to two major initiatives of China’s Communist Party:
1. Its “Made in China 2025” strategic plan to expand the manufacturing sector of the PRC (People’s Republic of China), and
2. Its Belt and Road Initiative (BRI) plan to control global trade and transportation infrastructure
The Belt and Road Initiative, with a presence in over 100 countries, involves $1.3-trillion dollars spent by China to build or buy control of the transportation and logistics facilities that are critical to global trade.
That dollar figure comes from Australian conglomerate BHP, which says the BRI is seven times larger than the Marshall Plan funded by America to rebuild Europe after World War 2.
As Forbes puts it, China has been on a “seaport shopping spree” buying control of major port facilities worldwide. Furthermore, another Department of Defense report says the BRI is “leveraging civilian construction for military purposes; and . . . logistics . . . for military purposes.”
A new assessment by the Center for Strategic and International Studies notes that China’s state funding is building over a third of the world’s ocean-going merchant ships, producing 96 percent of the world’s shipping containers, and controlling the largest port and logistics company in the world, all to serve as “the maritime supply arm of the People’s Liberation Army.”
The result is that China builds about 1,200 merchant ships a year, while the United States only builds eight.
With regards to combat ships, an October report from the Congressional Research Service warns Congress that China’s fast-growing navy is now “a major challenge to the U.S. Navy . . . in the Western Pacific — the first such challenge the U.S. Navy has faced since the end of the Cold War.”
Since 90% of global trade travels by ship, China is developing a chokehold that it could apply to threaten the economies of every nation, including the United States, in order to enforce its Communist will.
Sadly, there are some who want to invite China to expand its grip on America by repealing the Jones Act a, law prevents any vessel from conducting internal trade within American waters unless it’s American-built, American-owned and American-crewed.
This applies to cargoes carried on our waterways, along the intercoastal canals, and between American ports.
It would require a major U.S. commitment to reverse the trend of Chinese dominance of global trade. But keeping the Jones Act prevents China from accelerating the trend by taking control over our internal waters. Homeland security would be at risk if any foreign power infiltrated into the American economy in that way.
Keeping the Jones Act by itself will not remedy the problem of China’s militant expansionism. Cutting off U.S. funds from China’s commercial/military complex may help.
However, to develop real solutions, a first step is that the American people must be better-informed about what China is doing.
Whether due to the COVID-19 pandemic that began in Wuhan, China, or thanks to Beijing’s increasingly intimidating, if not aggressive, behavior in recent years, one of the more dramatic shifts in global opinion has started a long-overdue reconsideration of the liberal world’s relationship to the People’s Republic of China. In addition to a raft of high-level policy statements from the Trump administration, including the 2017 National Security Strategy, the 2019 Department of Defense Indo-Pacific Strategy report, and the 2020 “United States Strategic Approach to the People’s Republic of China,” a number of independent reports have been tracking Beijing’s predatory and threatening policies, whether in economics, security, or civil society. After decades of turning the other cheek to Beijing’s abuse of the free world’s open societies, all in order to maintain trade relations that themselves were turning increasingly one-sided, liberal states have begun the process of recalibrating their ties to China.
This is no easy task for America or other states, after nearly a half-century of engagement. How to reduce supply chain vulnerability without crashing current manufacturing models, how to support Taiwan and Hong Kong in the face of Beijing’s aggressive actions, whether to keep admitting hundreds of thousands of Chinese students to American universities, how to keep doing business with Chinese firms while defending rampant theft of intellectual property, the “to do” list goes on and on. The difficulty is a testament to just how thoroughly the post-Mao PRC intertwined itself with free economies and societies around the world, while at the same time resisting much, if not all, pressure to liberalize in turn. Despite decades of optimistic comments from Western leaders, including U.S. presidents, China under current Chinese Communist Party (CCP) general secretary Xi Jinping has become an even more repressive and insular state, committed to the Leninist control by the CCP, and steadfastly opposed to liberal notions of free speech and free association. The PRC’s techno-authoritarian surveillance state has taken the world’s leading technologies, many originated in Western research institutes and universities, and twisted them into a comprehensive network of social control. Western businesses, media, universities, and the like have all submitted to Beijing’s pressure, self-censuring and apologizing for remarks critical of the PRC.
The great question facing the free world is how to deal with the PRC in this new era of competition. One answer is provided in a new “handbook” for democracies, published this week by the Halifax International Security Forum (HFX) to coincide with its annual conference. The handbook, entitled “China Vs. Democracy: The Greatest Game,” is a primer on how the PRC threatens the open global society that is the source for most of its own wealth and power (full disclosure: I am the senior advisor for Asia at HFX, and was part of the team that produced the handbook). Divided into chapters that look at the CCP’s oppression inside China, influence campaigns against democracies, the battle over global economic domination, the race for technological supremacy, and the military competition that may determine war or peace, the handbook is one of the first comprehensive attempts to chart the broad China challenge.
As the handbook notes, this is not the competition, or tension, that the liberal world wanted or expected when it opened its doors to Chinese leader Deng Xiaoping and his reform plans back in the 1970s. Betting on China made sense during the Cold War and in light of what appeared to be legitimate reform inside China. The failure of Washington and its allies to conduct due diligence over the succeeding decades, questioning whether Beijing was living up to its promises and was becoming a cooperative nation upholding international norms, gave the CCP a free hand to build up its global power while eliminating any threats to its continued control. By the end of the Obama administration, the severity of the challenge could no longer be ignored or explained away as the result of a China still attempting to find its way in the world.
Yet, it is in the hands of democracies to deal with the China challenge in a way that not only protects their interests, but also may one day help the people of China. As HFX president Peter Van Praagh, who initiated the project, notes in his introduction:
Working in concert, the world’s democracies have overwhelming advantages that China cannot meet. The challenge is no longer about trying to cooperate with a rising China governed by autocrats. The real China challenge for the world’s democracies is how to cooperate effectively with each other.
Indeed, that theme of the HFX China Handbook — democratic cooperation — is one increasingly echoed by other Western reports and studies on China. Despite the disruptions of 2020, from pandemic to elections, liberal societies and free states remain stronger and yes, more peaceful, than their authoritarian counterparts. Their politics may be messier and often inefficient, but they remain laboratories of innovation and magnets for those fleeing repressive systems. They remain more committed to equality and the long-term improvement of their governing mechanisms than states run by unelected oligarchs. More pertinently, democracies may find a renewed appreciation for the moral worth of their systems by working together to defend common interests, whether economic, social, or security, against a PRC that seeks to subvert liberal norms and make the world safe for autocracy.
Perhaps the most innovative part of the handbook is the “HFX China Principles,” a set of seven pledges to not be complicit in Beijing’s assault on democracy. The Principles include a pledge not to censor or self-censor criticism of China, not to punish those who critique the PRC, not to support Chinese businesses that participate in the oppression of the Chinese people, and not knowingly to patronize businesses that benefit from Chinese slave labor. Public pledges to adhere to the China Principles by governments, multinational corporations, universities, media companies, and ordinary citizens would be a beginning in right-sizing the world’s relations with the PRC, giving hope to those in Hong Kong and Xinjiang, and bolstering democratic states in Asia, from the Philippines to Japan. As a form of thinking globally and acting locally, the Principles may give the free world the confidence to begin defending itself against the China challenge.
For a variety of reasons, the U.S.-China rapport established by Richard Nixon has cooled considerably over the past few years. Some experts believe a return to what seemed to be a mutually beneficial status quo is possible once the Trump-era trade war comes to an end.
That’s a fantasy. The relationship between the two superpowers has been on the decline for some time, largely due to unfair trade practices on the part of the Chinese. They do not play fair and no amount of waiting on the part of the U.S. will cause them to change their stripes.
China makes billions by forcing U.S. companies to turn over valuable intellectual property in exchange for entry to its markets. Refusal to cooperate cuts off access to more than a billion potential customers. If America’s leaders aren’t demanding a change, a demand backed up with action, then what incentive is there for Beijing to change its policy?
Most American businesses have been advised by policymakers to wait. They’re stuck, hoping for relief — from international trade organizations to which the Chinese belong (thanks to the U.S. insisting they be admitted) or from U.S. politicians. Nothing will happen unless the pressure on Beijing is maintained.
When President Donald Trump talked about bad trade deals, he usually didn’t mention the World Trade Organization, the U.S. International Trade Commission, and the other multi-national and U.S. governmental bodies that are supposed to referee disputes. Maybe he should have, so that what these organizations accomplish – or more importantly fail to accomplish – will get the scrutiny needed.
Changes must occur. The ITC, for example, continues to show itself to be toothless. It’s failed to be tough on the non-practicing business entities known as “patent trolls” that exist almost solely to make the potentially lucrative charge that deep-pocketed entities have infringed on intellectual property rights so how can we expect tough action from them against China.
Patent trolls are a serious problem and a danger to economic growth and to consumers. They hinder innovation and can force higher prices on consumer technology and other goods now considered critical to life in the 21st century. Yet the ITC refuses to crack down on them, leaving China well-positioned to benefit from the mess they cause.
The commission is currently considering claims lodged by the Irish patent troll Neodron that its patents were infringed upon by major global tech companies including Apple, Microsoft, and Dell. It wants the ITC to grant an exclusion order baring these companies from selling all their major touchscreen mobile devices in the U.S. market.
What’s happening has been likened by some to extortion, with the productive companies being pressured to pay the complaining troll off rather than leave things to the ITC to decide.
Imagine if the ITC decides the issue in Neodron’s favor. The cost of smartphones, tablets, computers, and other devices covered by its order would immediately skyrocket to provide the rents Neodron is demanding. According to some estimates, nearly 90% of smartphones and tablets currently available in the U.S. market would disappear, be replaced by devices from China. The range consumers have when choosing a device would be narrowed while the prices for what they could buy would rise.
China already has a clear lead in developing and deploying 5G wireless devices. Given the critical technology race between the U.S. and China over who will dominate in 5G, how can a U.S. agency even consider a litigation outcome that forces U.S. consumers to buy their 5G devices (as well as their other touchscreen devices) only from China?
Tensions between the world’s two largest economies are already heightened, in part because the U.S. accused China of sponsoring criminal hackers trying to gain access to private data from biotech firms around the world working on coronavirus vaccines and treatments. The FBI said the Chinese government was acting like “an organized criminal syndicate.”
Neodron’s complaint to the ITC places the proverbial thumb on the scale for the Chinese and the technology they manufacture. If they win it would devastate the U.S. tech sector while helping Chinese tech companies gain a greater share of the global market, probably permanently. Like all patent trolls, Neodron’s claim cannot justify this kind of disproportionate and devastating result.
The ITC doesn’t have to go along with this. They can institute policy revisions that will thwart the efforts of Neodron and other patent trolls like them to use the ITC for monetary gain. Those changes should be made now before any more damage is done. There are bigger fish to fry.
Joseph Biden is the Manchurian candidate
In the 1962 movie, The Manchurian Candidate, the plot depicts a complicated plot by which the chosen candidate of the Communist enemy of the United States is to be elected President of the United States of America. This candidate will be compelled to execute every instruction of the Communists because he is the victim of numerous threats of blackmail and assassination by his controllers.
The publication of the 87 page document entitled “Hunter Biden, Burisma, and Corruption: The Impact on U.S. Government Policy and Related Concerns U.S. Senate Committee on Homeland Security and Governmental Affairs U.S. Senate Committee on Finance Majority Staff Report” (See Hunter Biden, Burisma and Corruption) on September 23, 2020 indicates that Joseph Biden would find himself in the same position as The Manchurian Candidate.
While this report has been ignored by the press and therefore the entire electorate as a partisan attack on the Democratic nominee, the information it contains is too detailed and specific, including names, dates, connections, and even checks with exact amounts to the penny, to be written off as fictional. It is precisely the type of detailed accusation which has always been lacking in the Democrats’ “Russian conspiracy” accusations against President Trump.
So, what are these accusations? The report traces the history of Robert Hunter Biden’s association with literally dozens of foreign countries with the effect of controlling billions of dollars supplied by Ukrainian, Chinese and other foreign sources and personally receiving millions of dollars, which he shared with his Uncle James Biden (Joe’s brother) and James’ wife Sara.
The most famous of Hunter Biden’s deals was his appointment to the Board of Burisma, a Ukrainian energy company owned by a notorious oligarch named Mykola Zlochevsky. The only known asset the younger Biden seems to have brought to the energy company’s Board was his relationship with the sitting Vice President, who had just been given the responsibility of directing all U.S. Ukrainian policy.
Hunter’s vehicle for this deal was Rosemont Seneca Partners, a $2.4 billion private equity firm. The firm was owned by three partners, Biden, John Kerry’s stepson, Christopher Heinz, and Heinz’s college roommate, Devon Archer, who was the Managing Partner in the firm. Biden and Archer joined the Burisma Board and Heinz left the firm in 2015.
There are interesting facts surrounding this appointment. On April 14, 2014, Managing Partner of Rosemount Seneca Partners Archer met with Vice President Joe Biden. Five days later, Biden flew to the Ukraine. The Report continues,
“The day after (Biden’s) visit, on April 22, Archer joined the board of Burisma. Six days later, on April 28, British officials seized $23 million from the London bank accounts of Burisma’s owner, Mykola Zlochevsky. Fourteen days later, on May 12, Hunter Biden joined the Board of Burisma, and over the course of the next several years, Hunter Biden and Devon Archer were paid millions of dollars from a corrupt Ukrainian oligarch for their participation on the board.” (p. 3)
The rest of the story is even more complicated and appalling. But most of all, the connections of the Bidens with China are important. The actions of the former Vice President are well known to the public. The inter-connections between the Bidens and U.S actions are not well known. To quote again from the Report :
1.The USA is currently in a contest with Communist China which will determine the fate of the world for at least the rest of this century. Already the Chinese have obtained enough technological knowledge from America’s leading-edge companies to challenge us in what is becoming a new weapons race. Much of this technology transfer was facilitated by America’s foreign policy which was motivated by globalism and facilitated by digitalization.
2.We now have a new administration which is dedicated to reversing that posture and acknowledging the competition. How that competition avoids a war down the road is based on the potential of one of these countries so overwhelming the other that that nation withdraws from the contest. This is the strategy that won the last Cold War. Any softening of our intent at this stage will lead to certain defeat.
3.Giving control of the federal government to the Democrat Party, led by a man who is not only sympathetic to our enemy but is subject to blackmail and intimidation by that enemy is to commit national suicide.
4.The charges made by the Senate committees must be thoroughly investigated and appropriate actions taken. There is simply too much smoke for there not to be a fire.
If all this makes you unutterably saddened as an American, you are not alone.
For years U.S. lawmakers and special interest groups have promoted policies that drove U.S. manufacturing offshore without people really being aware of it. Higher taxes, workplace regulations, environmental rules with onerous penalties, and other actions by government drove the costs of making things in America up so high it became a matter of corporate survival to take it to other countries.
Good for them, bad for us. China’s middle class has risen at the expense of U.S. workers and their families. Jobs have left places like Michigan and New York and Illinois for places with names most Americans can’t pronounce let alone find on a map.
It was a tragedy for workers and entire communities as the job providers moved away. Middle America understood what was going on, providing Donald Trump with fertile ground for his rhetoric about “bad trade deals” when he ran for president in 2016. For the coastal elites who only looked at the soaring values of their retirement portfolios, it was another story. It wasn’t until the COVID-19 pandemic struck that they realized what they had done.
For probably the first time since World War II, the U.S. economy was riddled with shortages. No matter how much money you had to spend, in some places, there wasn’t a roll of toilet tissue or a bottle of hand sanitizer to be found. Unless, in a few cases, you were willing to wait and buy it from China.
Memories may be short, but it wasn’t just these common household items that were in short supply. Items thought necessary for treating coronavirus patients like ventilators and pharmaceuticals as well as the personal protective equipment for hospital workers on the frontlines fighting the pandemic needed to protect themselves were not available in the quantities needed. China, where the outbreak was first detected, was hoarding what they made for their own use.
Recognizing the problem and expanding on what he promised while campaign, Mr. Trump has been looking for opportunities to bring the manufacturing of these products — and the jobs that go with them — home. And, unsurprisingly, he’s been criticized for doing it.
The Trump administration recently signaled its support for the launch of Kodak Pharmaceuticals, which would be a branch of the once-mighty Eastman Kodak company, by providing a $765 million loan to get things going. Kodak has been the anchor of Rochester, New York’s economy but has had difficulty adapting to the digital age.
This deal would not only stabilize a domestic supply chain, but it would reestablish the Rochester economy with a huge boom in the job market. So you would think the establishment of a new corporate entity to manufacture pharmaceutical ingredients in the United States that will help secure America’s drug supply chain and create what the Democrats used to call “good jobs at good wages” would be met with cheers and brass bands. Instead, the company finds itself under examination because the news caused the company’s stock to rise in value, creating the illusion that some company executives benefited financially.
It’s that kind of muddled thinking that drove so many jobs and companies out of the United States in the first place. At a time when initiative at home is desperately needed in the corporate sector, the first ones to step to the front of the line find themselves the victims of bad press and potential investigations. This is not to excuse any bad actions or actors – and if there were any, they would have been uncovered by Kodak’s independent review, but none were.
We should expect that a company’s “good news” should lead to an increase in the price of its stock. That’s good for the shareholders, which should be any company’s principal if not the only concern, as well as the country. The idea that people working for the company might also profit is the hallmark of the suspicious, anti-free market attitudes that infected the media, members of the political class, and consumer watchdogs for decades and which, more than once, nearly destroyed the American economy.
Senior White House trade advisor Peter Navarro recently called COVID-19 a wake-up call for the nation, not just because of the threat it posed to our health or healthcare system but because it left us defenseless in economic and national security terms. “We have already witnessed over 80 countries impose some form of export restrictions on medicines or medical supplies, proving that no matter how strong our friendships or alliances may be, they mean nothing in a pandemic,” he told the Wall Street Journal.
Kodak was found innocent of all “charges” after an in-depth internal investigation. Policymakers and watchdogs need to move on and come up with a plan to bring manufacturing and jobs home, by creating incentives to do just that.
There are a lot of tools in the tool kit to make this possible: tax breaks, additional deregulation, export assistance, and opportunity zones are just a few of the things that can be dangled in front of the heads of big companies to lure them to bring their operations home.
America needs a big plan that ties them and other ideas together to bring the manufacture of essential goods like pharmaceuticals and PPE home, before the next global pandemic hits. Breaking our 100% dependence on foreign manufactures located in countries whose interests may diverge from ours at some future and highly inconvenient time must become a national priority now.
This week a record number of world leaders delivered speeches to the 75th session of the United Nations General Assembly (UNGA). As expected, the global response to the COVID-19 pandemic featured heavily with, unsurprisingly, many world leaders touting their response. Chinese President Xi Jinping focused on how we can bring the international economy back to financial health, while Russian President Vladimir Putin offered UN employees free coronavirus vaccines.
This UNGA meeting is more significant than most, not because it’s virtual, or because it’s the first appearance by both the Russian and Chinese Presidents since 2015. On its 75th anniversary world leaders are “meeting” to opine at a time when we have all been forced to reckon with the current state of the world in very personal ways.
It is a fact that the coronavirus pandemic has given fervent voice to those that for decades have feared the dangers of an uncontained China. Military and technological advancements as well as economic power have provided the Communist country with the ability to remake the global political landscape. These voices find a newly receptive audience, in the halls of government and in our homes, with our usual freedoms constrained by a virus born in China.
In the U.S., policies that take aim at China’s malign global agenda rather than create pathways for greater Chinese investment have become more palatable, and that trend is unlikely to slow for the foreseeable future. But what about in a post-corona economy? What about those nations already under economic pressure, historically vulnerable to outside interference, and struggling to orientate themselves in regions of competing global economic powers the likes of Russia and China? What about staunch U.S. allies like Georgia?
The former Soviet bloc nation is at the crossroads between Asia and Europe, strategically important to the West, not just as a bulwark to Russian regional influence but as a safe alternate route for energy and digital pipelines connecting the Caucasus to Europe as well. It is strategic allies like this that will fall victim to authoritarian influence if we do not vehemently promote and support democratic reforms that deliver economic independence.
U.S. support for Georgia’s membership of NATO and accession to the European Union remains strong and often touted. There is renewed support for a Free Trade Agreement between Georgia and the U.S. within Congress and among those that have assisted and tracked Georgia’s liberalization. However, Russian interference continues to run amok of Georgian democracy and is heavily influencing decisions of strategic importance to the West while harming Georgia’s economic health.
A recent example includes moves by the Georgian government to undermine a U.S. and Europe-backed investment consortium contracted to construct a $2.5 billion deep water seaport at Anaklia on Georgia’s Black Sea coast. The port would have provided critical supply routes binding Central Asian States to the South Caucuses, and countered Russian efforts to control regional supply chains. However, the investment agreement was abruptly revoked by the national government, undoubtedly to the pleasure of Moscow and Beijing.
This week, the Georgian National Communications Commission is set to use new powers rushed through by the Georgian government to expropriate Caucasus Online. This would undermine a business deal between the internet company and NEQSOL Holding, an Azeri firm with company operations in the U.S., the UK, Azerbaijan and more. After originally giving the deal its blessing, the Georgian government has targeted the firm with historic fines, threatened to suspend Caucasus Online’s license, and even amended its communications law – in an untransparent manner – in order to empower the Georgian telecoms regulator to expropriate the company.
Since last November, members of Congress have several times raised concerns with Georgian Prime Minister Giorgi Gakharia about Georgia’s increasingly uncertain business climate and political targeting of specific companies. Congressman Adam Kinzinger wrote in January “Unfortunately, economic indicators show a sharp decline in foreign direct investment in Georgia as American and European companies have suffered harassment, causing many to reconsider their business ventures.”
While it reeks of Russian interference, the motivation behind the Georgian government’s targeting of Caucasus Online is baffling. Azerbaijan is Georgia’s largest investor and the deal to purchase Caucasus Online relates to a much larger strategic project to build fiber optic cables from Azerbaijan into Europe under the Black Sea, providing improved internet access to over 1.8 billion people. This new digital speedway aims to improve regional economic development, facilitate e-commerce in the region, and establish Georgia as a prominent trade hub between Asia and Europe.
It’s almost as if the U.S. is failing to connect the dots — as long as Georgia continues to undermine friendly investment, it inevitably provides a vacuum that China and Russia would be more than happy to fill.