Who understands our times, Bernie or The Donald?


April 13, 2019

Who understands our times, Bernie or The Donald?

by Fareed Zakaria.com

https://fareedzakaria.com/columns/2019/4/11/who-understands-our-times-bernie-or-the-donald

There are many explanations for Benjamin Netanyahu’s victory in this week’s election that have to do with Israel’s particular situation — its economic boom, stable security climate and the prime minister’s political talent. But he is also part of a much larger phenomenon: the continued strength of populist nationalism around the world — and the continued inability of left-of-center parties to respond to it.

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The case for populist nationalism goes something like this. It’s a nasty world out there. People are trying to take our jobs, undermine our security, move into our country. The cosmopolitan urban elites don’t care; they benefit from these forces. So we need a tough guy who will stand up for the nation and against the liberals in our midst.

In some variant or another, this is the argument made by Netanyahu, Vladimir Putin, Recep Tayyip Erdogan, Narendra Modi, Viktor Orban, Jaroslaw Kaczynski, Jair Bolsonaro, the Brexiteers — and, of course, President Trump.

In 1972, the philosopher Isaiah Berlin wrote that nationalism “expresses the inflamed desire of the insufficiently regarded to count for something among the cultures of the world.” He placed the roots of modern nationalism in Germany, a country obsessed with finding its place in the sun. But the sentiment — a kind of victim mentality — can be found in almost all modern variations, even among rich and powerful nations.

Look at Putin’s claim that Russia has been pushed around by the West since the Cold War, the Chinese obsession with their humiliation since the opium wars, the Israeli right’s complaint that the world is biased against Israel and Trump’s constant refrain that all foreigners — from Mexicans to Chinese to Europeans — take advantage of the United States. These leaders promise to rectify the situation and restore their countries’ proper standing in the world.

Trump’s embrace of the word “nationalism” illustrates the simultaneous attacks on domestic elites (with their politically correct language) and on perfidious foreigners. “We’re not supposed to use that word,” Trump said in October. “You know what I am? I’m a nationalist, okay? I’m a nationalist. Nationalist. Nothing wrong. Use that word. Use that word.”

When asked the next day what he meant by the term, Trump responded, “I love our country. And our country has taken second fiddle. . . . We’re giving all of our wealth, all of our money, to other countries. And then they don’t treat us properly.”

Netanyahu, for his part, has long argued that Israel deserves a much better “place among the nations,” a phrase that was the title of his 1993 book that argued for a robust Israeli nationalism that is aggressive and unapologetic. Though Israel’s strength and security have grown immeasurably, as its historical enemies — Saudi Arabia and Syria, among others — have either become buddies or basket cases, the argument that the world is against it has somehow persisted.

In fact, despite the pose of victim hood adopted by most of these populists, nationalism is probably the most widely held ideology in the world today. Which American politician today does not speak up for the United States? The real debate is whether nationalism should be informed and influenced by other values such as liberty and equality and, if these two sets of values conflict, which one should be preferred. That’s why the most ardent capitalists — from Friedrich Hayek to Milton Friedman — have always been in favor of globalization and economic freedom above nationalist protections and controls.

The danger for liberals is that they underestimate the power of these raw, emotional appeals. For centuries, liberals have assumed that nationalism was a kind of irrational attachment that would grow weaker as people became more rational, connected and worldly. In fact, Berlin wrote, like a twig that is bent in one direction and has to snap back, as globalization grew in its reach, nationalism would be the predictable backlash.

Populist nationalists understand the core appeal of their ideology. I recently asked a Bolsonaro supporter whether the Brazilian president’s economic policies (which are free-market-oriented and reformist) or his cultural nationalism was the key to his appeal. The supporter’s answer: Nationalism is the party’s core; the economics is simply about efficiency and growth.

Meanwhile, liberals in the United States still don’t seem to get it. The Democratic Party continues to think the solution to its woes is to keep moving leftward economically. This week, Sen. Bernie Sanders (I-Vt.) revealed his new Medicare-for-all plan, which was immediately co-sponsored by four other presidential candidates. The plan will probably require an additional $2 trillion to $3 trillion in annual tax revenue.At the same time, Trump tweets about the Democrats’ love of “open borders” and insists he will protect the country and enforce its laws. What if Trump understands the mood of our times better than Sanders?

(c) 2019, Washington Post Writers Group

 

Trump’s Most Worrisome Legacy


April 13, 2019

stiglitz257_Win McNameeGetty Images_trump nielsen

Trump’s Most Worrisome Legacy

The US president’s attacks on America’s truth-seeking institutions jeopardize its continued prosperity and very ability to function as a democracy. As corporate giants capture the institutions that are supposed to protect ordinary citizens, a dystopia once imagined only by science fiction writers is emerging before our eyes.

NEW YORK – Kirstjen Nielsen’s forced resignation as US Secretary of Homeland Security is no reason to celebrate. Yes, she presided over the forced separation of families at the US border, notoriously housing young children in wire cages. But Nielsen’s departure is not likely to bring any improvement, as President Donald Trump wants to replace her with someone who will carry out his anti-immigrant policies even more ruthlessly.

Trump’s immigration policies are appalling in almost every aspect. And yet they may not be the worst feature of his administration. Indeed, identifying its foulest aspects has become a popular American parlor game. Yes, he has called immigrants criminals, rapists, and animals. But what about his deep misogyny or his boundless vulgarity and cruelty? Or his winking support of white supremacists? Or his withdrawal from the Paris climate accord, the Iran nuclear deal, and the Intermediate-Range Nuclear Forces Treaty? And, of course, there is his war on the environment, on health care, and on the rules-based international system.

This morbid game never ends, of course, because new contenders for the title emerge almost daily. Trump is a disrupting personality, and after he’s gone, we may well reflect on how such a deranged and morally challenged person could have been elected president of the world’s most powerful country in the first place.

But what concerns me most is Trump’s disruption of the institutions that are necessary for the functioning of society. Trump’s “MAGA” (Make America Great Again) agenda is, of course, not about restoring the moral leadership of the United States. It embodies and celebrates unbridled selfishness and self-absorption. MAGA is about economics. But that forces us to ask: what is the basis of America’s wealth?

Adam Smith tried to provide an answer in his classic 1776 book The Wealth of Nations. For centuries, Smith noted, standards of living had been stagnant; then, toward the end of the eighteenth century, incomes start to soar. WhySmith himself was a leading light of the great intellectual movement known as the Scottish Enlightenment. The questioning of established authority that followed the earlier Reformation in Europe forced society to ask: How do we know the truth? How can we learn about the world around us? And how can and should we organize our society?From the search for answers to these questions arose a new epistemology, based on the empiricism and skepticism of science, which came to prevail over the forces of religion, tradition, and superstition. Over time, universities and other research institutions were established to help us judge truth and discover the nature of our world. Much of what we take for granted today – from electricity, transistors, and computers to lasers, modern medicine, and smartphones – is the result of this new disposition, undergirded by basic scientific research (most of it financed by government).

The absence of royal or ecclesiastical authority to dictate how society should be organized to ensure that things worked out well, or as well as they could, meant that society had to figure it out for itself. But devising the institutions that would ensure society’s wellbeing was a more complicated matter than discovering the truths of nature. In general, one couldn’t conduct controlled experiments.

A close study of past experience could, however, be informative. One had to rely on reasoning and discourse – recognizing that no individual had a monopoly on our understandings of social organization. Out of this process emerged an appreciation that governance institutions based on the rule of law, due process, and checks and balances, and supported by foundational values like individual liberty and justice for all, are more likely to produce good and fair decisions. These institutions may not be perfect, but they have been designed so that it is more likely that flaws will be uncovered and eventually corrected.

That process of experimentation, learning, and adaptation, however, requires a commitment to ascertaining the truth. Americans owe much of their economic success to a rich set of truth-telling, truth-discovering, and truth-verifying institutions. Central among them are freedom of expression and independent media. Like all people, journalists are fallible; but, as part of a robust system of checks and balances on those in positions of power, they have traditionally provided an essential public good.Since Smith’s day, it has been shown that a nation’s wealth depends on the creativity and productivity of its people, which can be advanced only by embracing the spirit of scientific discovery and technological innovation. And it depends on steady improvements in social, political, and economic organization, discovered through reasoned public discourse.

The attack by Trump and his administration on every one of the pillars of American society – and his especially aggressive vilification of the country’s truth-seeking institutions – jeopardizes its continued prosperity and very ability to function as a democracy. Nor do there appear to be checks on corporate giants’ efforts to capture the institutions – the courts, legislatures, regulatory agencies, and major media outlets – that are supposed to prevent them from exploiting workers and consumers. A dystopia previously imagined only by science fiction writers is emerging before our eyes. It should give us chills to think of who “wins” in this world, and who or what we might become, just in the struggle to survive.

 

Joseph E. Stiglitz, a Nobel laureate in economics, is University Professor at Columbia University and Chief Economist at the Roosevelt Institute. His latest book, People, Power, and Profits: Progressive Capitalism for an Age of Discontent, will be published in April.

On legal immigration, Trump might be right


April 7, 2019

On legal immigration, Trump might be right

by Dr . Fareed Zakaria

https://fareedzakaria.com/columns/2019/4/4/on-legal-immigration-trump-might-be-right

 

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President Trump’s threat to close the U.S.-Mexico border has confused even his allies. Sen. John Cornyn (R-Tex.) said it “would be bad for everybody.” Sen. John Thune (R-S.D.) remarked, “I’m not sure that’s a particularly good idea, and I’m not sure it gets the desired result.” Most assume the threat is part of the usual Trump style — bravado and bluff — and will eventually get dialed back, and there are already indications that this is happening.

But on the broader issue of legal immigration, Trump seems to be shifting his position. In his State of the Union address in February, he said, “I want people to come into our country in the largest numbers ever, but they have to come in legally.” Immigration hardliners did not take this well.

The president has since reasserted the idea. The day after the State of the Union, Trump told reporters: “I need people coming in because we need people to run the factories and plants and companies that are moving back in.” And Politico reported this week that Jared Kushner is quietly developing a proposal to increase legal immigration into the United States.

If this is Trump’s new and improved immigration position, the president might find his way to a powerful compromise — real crackdowns on illegal immigration, coupled with reform and actual increases in legal immigration. This also happens to be a smart policy idea.

A recent essay in the journal International Security points out that by 2050, the United States is projected to be the only major world power with an increase in its population . The four authors, all university professors, tie this factor to more dynamic economic growth and also the United States’ continued ability and willingness to play a major military and political role.

The data on other major powers is striking. United Nations projections show that by 2050, China and Russia will have a 20 percent drop in people of working age. Germany’s working-age population will drop by 17 percent, and Japan’s by 29 percent. This will probably translate into slower growth, less economic vitality and greater passivity on the world stage, the report says.

The United States’ working-age numbers are set to rise by 12 percent in the same period. In fact, only three other major developed countries will see increases in their working-age cohort: Australia, Canada and Britain. But all four countries are expected to enjoy this boost only because of immigration. Without immigration, by 2050, the U.S. working-age population would actually shrink by 4.5 percent. Canada’s would plummet by 20 percent.

China, on track to be the greatest economic, political and technological competitor to the United States, faces a demographic challenge that’s even more dire than was previously anticipated. Last year, China’s birth rate fell to its lowest level since 1961, a year of widespread famine. It appears that the Communist regime’s efforts to reverse the nation’s long-standing “one child” policy have not worked. The Chinese Academy of Social Sciences said in January that for China’s population, “the biggest event in the first half of the 21st century is the arrival of negative growth,” according to the South China Morning Post.

Amid all the noise in this country about immigration, it’s easy to forget the big picture. Immigration means a more robust economy. It usually means younger workers, which translates into greater dynamism and more innovation. Most Nobel Prizes are awarded to scientists for work they did when they were young. Most companies are founded by people when they are young. Younger populations are more risk-seeking, adventurous and entrepreneurial.

Despite the rhetoric around it, legal immigration in the United States is actually not that high. Before he became chairman of the White House Council of Economic Advisers, Kevin Hassett published a piece in National Review ranking wealthy countries on their ratio of new immigrants to total population in 2010. The United States had the third-lowest figure, higher only than Japan and France. Canada and Germany had more than twice as many new immigrants as a share of the population, and Norway and Switzerland had more than four times.

During the past two decades, many of the United States’ crucial competitive advantages have been copied by the world to the point that other nations do it better — with well-regulated market economics, technological investments, infrastructure, mass education. What does America have left to truly distinguish itself?

Over the past half-century, the United States has handled immigration better than most countries. It takes in people from everywhere, assimilates them better, integrates them into the fabric of society and is able to maintain an environment in which the new immigrants feel as invested as the old. This will be its core competitive advantage in this century.

(c) 2019, Washington Post Writers Group
Washington Post
April 4, 2019

Picking Up the Pieces After Hanoi


March 19, 2019

Picking Up the Pieces After Hanoi

by Richard N. Haass

The collapse of last month’s summit between US President Donald Trump and North Korean leader Kim Jong-un was perhaps the inevitable result of a process in which the two leaders dominated, optimistic about their personal relationship and confident in their abilities. The question is what to do now.

 

NEW YORK – When last month’s summit between US President Donald Trump and North Korean leader Kim Jong-un ended without a deal, the result was not surprising. One or both countries came to Hanoi with a misunderstanding of what was possible.

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The United States maintained that North Korea wanted nearly all international sanctions lifted upfront and was not prepared to give up enough of its nuclear facilities to warrant doing so. North Korean officials explained that they were prepared to dismantle the country’s main facility, the Yongbyon Nuclear Scientific Research Center, “permanently and completely,” but only in exchange for a considerable reduction in existing sanctions.

The anticlimax in Hanoi was perhaps the inevitable result of a process in which the two leaders dominated, optimistic about their personal relationship and confident in their abilities. Senior officials and other staff members, who normally devote weeks and months to preparing for such summits, had but a limited role.

The question is what to do now. One option is to try to negotiate a compromise: either more dismantling of nuclear infrastructure in exchange for more sanctions relief, or less dismantling in exchange for less relief.

Although one of these approaches may prove possible, either outcome would be less than ideal. Simply agreeing to give up individual nuclear facilities is not the same as denuclearization. Indeed, it does not necessarily even get us closer to denuclearization, because facilities could be built or expanded as others are being dismantled. Precisely this currently seems to be occurring. Meanwhile, lifting sanctions removes the pressure on North Korea to take meaningful steps toward denuclearization.

So what are the alternatives? Using even limited military force risks escalation, a costly war from which no one would benefit, and a crisis in relations between the US and South Korea. And, given North Korea’s demonstrated resilience, existing or even additional sanctions alone are highly unlikely to be enough to coerce its leaders into abandoning their nuclear program.

Moreover, no matter how much pressure is brought to bear on North Korea, China and Russia will likely do whatever is necessary to ensure its survival, given their strategic interest in avoiding a reunified Korean Peninsula aligned with the US. Hopes that North Korea will collapse under its own weight are thus unrealistic.

Trump seems to harbor the equally unrealistic notion that North Korea will voluntarily give up its nuclear weapons in order to become the next Asian economic tiger. But while Kim wants sanctions relief, fundamental economic reform would threaten his tight grip on power, and giving up his nuclear weapons and missiles would make North Korea and himself vulnerable. He has taken note of what happened to Ukraine, which voluntarily relinquished its Soviet-era nuclear weapons in the early 1990s, as well as to Iraq’s Saddam Hussein and Libya’s Muammar al-Qaddafi.

The status quo, however, is no solution. The current testing moratorium could end; indeed, North Korea is threatening to resume tests and there is evidence it is reconstituting its principal missile-testing site. This may be a bid to encourage the US to show more flexibility, or the North may actually be preparing to restart testing – a step that would likely lead the US to resume large-scale military exercises with South Korea and push for new sanctions. Talks would likely be suspended; we would be back to where we were two years ago but with an overlay of recrimination and mistrust.

Even absent such developments, drift is not desirable. North Korea could use the passage of time to increase the number of nuclear weapons in its arsenal and make some improvements to its warheads and delivery systems without overt testing. There is a big difference between a North Korea armed with a handful of inefficient warheads and inaccurate missiles and one with dozens of advanced weapons that could be mounted on accurate long-range missile systems capable of reaching the US.

At this point, any realistic policy must begin with accepting the reality that complete and fully verifiable denuclearization is not a realistic prospect any time soon. It need not and should not be abandoned as a long-term goal, but it cannot dominate near-term policy. An all-or-nothing policy toward North Korea will result in nothing.

So it makes sense to explore a phased approach. In an initial phase, North Korea would agree to freeze not just the testing of its systems, but also the production of nuclear material, nuclear weapons, and long-range missiles. This would require the North Korean authorities to provide a detailed accounting (a so-called declaration) of the relevant facilities and agree to verification by international inspectors.

In exchange, North Korea would receive the sort of substantial sanctions relief it sought in Hanoi. There could also be an end to the state of war that has existed for the past seven decades, and liaison offices could be opened in Washington, DC, and Pyongyang. But full sanctions relief and diplomatic normalization would come only with full denuclearization.

This might well be too much for North Korea, arguably the world’s most closed society. If so, the bulk of the sanctions need to remain in place; they would be lifted only in proportion to any dismantling – and only so long as the world could be confident that North Korea was not developing new capabilities to replace those it was abandoning. The US could specify which sites, in addition to Yongbyon, need to be dismantled.

Even this less ambitious approach would likely prove extraordinarily difficult. But, given the high stakes and unattractive alternatives in dealing with North Korea, any viable route to a settlement that ensures long-term stability is worth pursuing.

ttps://www.project-syndicate.org/commentary/dealing-with-north-korea-after-hanoi-summit-failure-by-richard-n–haass-2019-03

Richard N. Haass, President of the Council on Foreign Relations, previously served as Director of Policy Planning for the US State Department (2001-2003), and was President George W. Bush’s special envoy to Northern Ireland and Coordinator for the Future of Afghanistan. He is the author of A World in Disarray: American Foreign Policy and the Crisis of the Old Order.

The Accidental Atlanticist-Pence vs. Biden@ Munich


February 26,2019

mike pence munich security conference

The Accidental Atlanticist-Pence vs. Biden@ Munich

https://www.project-syndicate.org/columnist/mark-leonard

At this year’s Munich Security Conference, appearances by former US Vice President Joseph Biden and current Vice President Mike Pence offered the trans-atlanticists in attendance a portrait in contrasts. Yet to achieve the bright future promised by Biden, Europeans need to heed Pence’s dark warnings.

The transatlantic partnership will always be Europe’s most important relationship. But it can last only if both sides take responsibility for their own affairs. The alliance would be immeasurably stronger if it were based on an honest assessment of each side’s interests and values, rather than on quaint illusions of fellow feeling”.–

 

MUNICH – Two Americas were represented by two different vice presidents at the Munich Security Conference this year. Between them, former Vice President Joseph Biden certainly received the warmer reception, but Vice President Mike Pence may have unwittingly emerged as the savior of transatlantic relations.

In his address, Pence duly championed his boss, US President Donald Trump, as the “leader of the free world.” But the “free world” he described was scarcely recognizable to the Munich audience. In the world Trump wants to lead, America is not the exceptional power, but merely a normal country putting its own interests first. By that logic, it is only reasonable to break from multilateral institutions that allow weaker countries to free-ride on American largesse.

In keeping with this vision, Pence used his speech to demand that Europeans spend more on defense, and to extol the virtues of the Trump administration’s trade war against China. But the climax came when he enjoined Europe to get in line with the US in suspending the 2015 nuclear deal with Iran – the Joint Comprehensive Plan of Action (JCPOA) – and restoring sanctions on the Islamic Republic.

According to Pence, Iran is plotting another Holocaust, for which Europeans will bear partial responsibility unless they stop US sanctions. This warning came on the tail of a US-hosted conference in Warsaw, which was designed to drive a wedge between European Union countries and derail the bloc’s efforts to salvage the JCPOA.

Pence spoke for the America that works to divide and weaken Europe. The other America, represented in Munich by Biden, views the Trump administration’s actions as an “embarrassment.” In his speech, Biden described an America that does not want to turn its back on allies and that values democracy, the rule of law, freedom of the press, and a close partnership with Europe based on shared “human decency.”

Biden ended his remarks to great applause, declaring, “We will be back.” Was he referring to an outward-looking America, or to a future Biden presidency? Many of those present hoped for both.

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The rapturous applause following Biden’s appearance was markedly at odds with the awkward, stony silence that followed Pence’s address. The contrast was reminiscent of the early 2000s, when disillusioned transatlanticists took refuge in The West Wing, wherein the cerebral character of President Josiah Bartlet (played by Martin Sheen) stood in stark contrast to George W. Bush and his administration’s disingenuous brutality.

But such escapism yields only false hope. Rather than being lulled into complacency by Biden’s reassuring words, Europeans would be better off heeding Pence. Only by growing up, paying its way, and clarifying its goals can Europe repair the transatlantic relationship and ensure a healthy and durable partnership.

The fact is that Europeans and Americans have long lied to themselves and each other about the extent of their common interests and values. European and US strategic interests have been diverging at least since the end of the Cold War. America rescued a hapless Europe in the Balkan Wars of the 1990s. But by the time of the Kosovo War at the end of that decade, Europeans had begun to wake up to their responsibilities. In the 2008 Russo-Georgian War, and in the conflict in Ukraine since 2014, it was Europeans, not Americans, who led the diplomatic response and imposed the strongest sanctions on Russia.

Moreover, Europe is the only party ever to have mobilized in the name of collective defense under Article 5 of the NATO treaty. Following the terror attacks of September 11, 2001, Europeans sent forces to distant wars in the Middle East, over which they had little control.

In hindsight, it is clear that those wars destabilized Europe’s neighborhood and, eventually, Europe itself. America’s exclusive focus on counter-terrorism left war-torn Middle Eastern countries with fragile governments, or none at all. And in recent years, Europeans have increasingly borne the costs in the form of terrorism and influxes of refugees.

As for the US, many of its 320 million citizens no longer understand why they should have to protect 500 million Europeans, who live, after all, on a relatively peaceful and prosperous continent. They know that their country is in an escalating competition with China in the Indo-Pacific, and are thus shocked that Europeans would join the Chinese-led Asian Infrastructure Investment Bank. Ultimately, Europeans are left between a rock and a hard place. They, too, want to push China harder on trade and investment issues. But the best way to do that is through the World Trade Organization, which the Trump administration is actively undermining.

The divergence in values is no less pronounced. For their part, Europeans support international institutions, rules-based arrangements, and multilateralism generally. But America has always been ambivalent about treaties and institutions that might constrain its sovereignty or defy its objectives.

While Trump and Pence crudely state what today’s America wants, Biden is selling a vision of America that it no longer obtains. The US government does not have the American people’s consent to act on the world stage as it once did. While Americans still recognize the importance of sustaining US economic and military primacy vis-à-vis China, they appear to have rejected the elite consensus on trade, defense spending, and diplomacy.

The transatlantic partnership will always be Europe’s most important relationship. But it can last only if both sides take responsibility for their own affairs. The alliance would be immeasurably stronger if it were based on an honest assessment of each side’s interests and values, rather than on quaint illusions of fellow feeling.

Pence’s blunt speech in Munich may have been painful to hear; but one hopes that it will bring an end to European complacency and point the way to a renewal of transatlantic relations on realistic terms. If that turns out to be the case, Pence will have won the title of transatlantic hero – whether he wants it or not.

Mark Leonard is Director of the European Council on Foreign Relations.

A Trade Deal with China will require a more comprehensive approach, based on a fundamental shift in mindset say, Andrew Sheng and Xiao


February 23, 2019

trump xi jinping

A Trade Deal with China will require a more comprehensive approach, based on a fundamental shift in mindset, say Andrew Sheng and Xiao

 

https://www.project-syndicate.org/commentary/trump-zero-sum-approach-china-trade-talks-by-andrew-sheng-and-xiao-geng-2019-02

In the ongoing US-China trade talks, considerable progress has been made on several key trade issues, such as intellectual-property rights protection. But to defuse tensions in any sustainable way will require a more comprehensive approach, based on a fundamental shift in mindset.

HONG KONG – Trade negotiations between the United States and China are closing in on the March 1 deadline, after which the bilateral tariff war will resume – beginning with an increase from 10% to 25% on $200 billion worth of Chinese products. While global financial markets are fluctuating wildly, investors seem to assume that too much is at stake for the US and China to fail to reach a deal. Their optimism could prove short-lived.

To be sure, there has been considerable progress on several key issues, such as technology transfer, protection of intellectual-property rights, non-tariff barriers, and implementation mechanisms. But to defuse tensions between the US and China in any sustainable way will require a more comprehensive approach, based on a fundamental shift in mindset.

Over the last 40 years, Sino-US engagement has been largely cooperative, reflecting a holistic approach that takes into account the interests of the entire global system. US President Donald Trump’s administration, however, does not seem to believe that engagement with China (or anyone else for that matter) can benefit both sides. As Trump’s “America First” agenda shows, the US is now playing a zero-sum game – and it is playing to win.

For example, the US has threatened to punish or desert its closest allies unless they increase their defense spending. Under pressure from the Trump administration, South Korea just agreed to increase its contributions to US forces in Korea by 8.2%, to $923 million, in 2019.

Similarly, Trump has repeatedly disparaged fellow NATO members for insufficient defense spending. Most recently, Trump has criticized Germany for spending only 1% of GDP for defense, compared to America’s 4.3%. German Chancellor Angela Merkel responded by condemning US isolationism at the Munich Security Conference, and calling for the revival of multilateral cooperation.

The Trump administration’s myopic approach is also apparent in its preoccupation with bilateral trade imbalances. Any US deficit with another economy is, from Trump’s perspective, a loss. Given this, if China agrees to cut its bilateral trade deficit with the US, other economies with bilateral surpluses vis-à-vis the US – including close allies, such as the European Union and Japan – may find themselves facing intensifying pressure to do the The weakening of trade that could result in this scenario would compound existing negative pressure on global growth, hurting everyone. A global economic downturn is the last thing the world needs at a time when it is already beset with risks, including a possible no-deal Brexit and populist gains in the European Parliament election in May.

Of course, while Trump does not spare his allies, his primary target remains China. After all, the competition between the US and China extends far beyond trade. Although the US maintains military, technological, financial, and soft-power superiority, China has been steadily catching up, leading to bipartisan support in the US for a more confrontational approach.

Last October, US Vice President Mike Pence bluntly accused China of technology theft, predatory economic expansion, and military aggression. Pence’s stance echoed the fears of the US national security community. As former US Defense Secretary Ashton Carter put it, “Because it is a Communist dictatorship, China is able to bring to bear on US companies and our trading partners a combination of political, military, and economic tools that a government such as ours cannot match. This puts us at an inherent disadvantage.”

And yet America’s tools are hardly useless. The US authorities have mobilized a broad range of domestic and international resources – from law and diplomacy to national security measures – to stop the overseas expansion of the Chinese telecommunications giant Huawei. If Western countries allow Huawei to build their 5G infrastructure, America’s hawks and their allies argue, they will be vulnerable to cyberattacks from China in some future war.

All of this has shaken business and market confidence to the core, wiping out trillions of dollars in market capitalization. And the Trump administration’s apparent insistence that countries choose sides in its dispute with China is further heightening fears. As the rest of the world’s trading countries understand, Trump’s approach will fragment business and reverse the globalization-enabled economies of scale that have fueled growth for decades.

“Ending the Sino-US trade war will require considerable statesmanship on the part of Trump and Chinese President Xi Jinping. But, beyond that, both sides need to recognize that supporting global peace and prosperity requires less ideology and more respect for diversity of political, social, and cultural systems. Failing that, the fault lines will continue to deepen – much as they did in the 1930s – potentially setting the stage for full-blown war”- .

More broadly, the Trump administration’s rejection of multilateralism undermines the global cooperation needed to confront a range of issues, including migration, poverty and inequality, climate change, and the challenges raised by new technologies. Trump’s focus on geopolitical rivalry – and the associated rise in security and defense spending – will dramatically reduce resources available for global public goods, such as infrastructure investment and poverty-reduction programs.