Secretive Bilderberg Meeting Draws Pompeo and Kushner

BERN, Switzerland — Secretary of State Mike Pompeo is on a weeklong trip to Europe where he is raising sensitive issues with national leaders — from Iranian missiles to Chinese technology to the economic collapse of Venezuela — but the most colorful conversations could take place this weekend out of public earshot in a secretive conclave at a Swiss lakeside resort.

In Montreux, on the eastern shore of Lake Geneva, political and business leaders from Western nations are gathering for the 67th Bilderberg Meeting, an annual forum in which participants agree not to reveal exactly what was said or who said it. It is a shadow version of Davos, the elite annual winter conference in the Swiss Alps that President Trump has attended once but has also criticized.

The State Department has not even put the Bilderberg Meeting on Mr. Pompeo’s public schedule, though a senior official confirmed he was attending Saturday.

.. No doubt those culinary treats will be on hand at venues in Montreux, to fuel discussion on 11 central topics now hotly debated in countries around the globe:

  1. the future of capitalism,
  2. the weaponization of social media,
  3. artificial intelligence,
  4. Brexit,
  5. China,
  6. Russia and so on.

Jared Kushner, Mr. Trump’s son-in-law and Middle East adviser, is another top administration official planning to attend. The 130 or so participants also include King Willem-Alexander of the Netherlands; Stacey Abrams, the American politician; Henry Kissinger, the former senior American foreign policy official; Eric Schmidt, the former chief executive of Google; and David H. Petraeus, the retired general. Some top bank executives are on the list, too.

On at least one subject, climate change, many of the participants are expected to have radically different views than Mr. Pompeo. In early May, the American secretary, speaking at a meeting of the Arctic Council in Finland, praised the changes caused by the melting of ice in the Arctic Circle.

Steady reductions in sea ice are opening new passageways and new opportunities for trade,” Mr. Pompeo said, while noting the abundance of undiscovered oil and gas, uranium, rare-earth minerals, coal, diamonds and fisheries in the Arctic.

What Mr. Pompeo, Mr. Kushner and the other Bilderberg attendees actually say to each other will be a mystery to most of the public, thanks to the meeting’s use of the Chatham House Rule, which states that although attendees can tell the public what was discussed, generally, participants must not reveal who said what.

Donald Trump’s Phony America

There are several kinds of success stories. We emphasize the ones starring brilliant inventors and earnest toilers. We celebrate sweat and stamina. We downplay the schemers, the short cuts and the subterfuge. But for every ambitious person who has the goods and is prepared to pay his or her dues, there’s another who doesn’t and is content to play the con. In the Trump era and the Trump orbit, these ambassadors of a darker side of the American dream have come to the fore.

.. What a con Holmes played with Theranos. For those unfamiliar with the tale, which the journalist John Carreyrou told brilliantly in “Bad Blood,” she dropped out of Stanford at 19 to pursue her Silicon Valley dream, intent on becoming a billionaire and on claiming the same perch in our culture and popular imagination that Steve Jobs did. She modeled her work habits and management style after his. She dressed as he did, in black turtlenecks. She honed a phony voice, deeper than her real one.

She spoke, with immaculate assurance, of a day when it might be on everyone’s bathroom counter: a time saver, a money saver and quite possibly a lifesaver. She sent early, imperfect versions of it to Walgreens pharmacies, which used it and thus doled out erroneous diagnoses to patients. She blocked peer reviews of it and buried evidence of its failures.

This went on not for months but for years, as Holmes attracted more than $900 million of investment money and lured a breathtakingly distinguished board of directors including two former secretaries of state, George Shultz and Henry Kissinger; a former secretary of defense, William Perry; and a future secretary of defense, James Mattis. What they had before them wasn’t proof or even the sturdy promise of revolutionary technology. It was a self-appointed wunderkind who struck a persuasive pose and talked an amazing game.

She was eventually found out, and faces criminal charges that could put her in prison. But there’s no guarantee of that. Meantime she lives in luxury. God bless America.

Theranos was perhaps an outlier in the scope of its deceptions, but not in the deceptions themselves. In an article titled “The Ugly Unethical Underside of Silicon Valley” in Fortune magazine in December 2016, Erin Griffith tallied a list of aborted ventures with more shimmer and swagger than substance, asserting: “As the list of start-up scandals grows, it’s time to ask whether entrepreneurs are taking ‘fake it till you make it’ too far.”

The US-Saudi Relationship After Khashoggi

The US-Saudi relationship has been a rocky one, and its setbacks and scandals have mostly played out away from the public eye. This time, too, common interests and mutual dependence will almost certainly prevail over the desire to hold the Saudis to the standards expected of other close US allies.

.. But significant damage to bilateral ties, let alone a diplomatic rupture, is not in the cards, even if all the evidence points to a state-sanctioned assassination. Saudi Arabia is simply too crucial to US interests to allow the death of one man to affect the relationship. And with new allies working with old lobbyists to stem the damage, it is unlikely that the episode will lead to anything more than a lovers’ quarrel.
.. Saudi Arabia’s special role in American foreign policy is a lesson that US presidents learn only with experience. When Bill Clinton assumed the presidency, his advisers were bent on distancing the new administration from George H.W. Bush’s policies. Among the changes sought by Clinton’s national security adviser, Anthony Lake, was an end to the unfettered White House access that Saudi Arabian Ambassador Bandar bin Sultan enjoyed during the Reagan and Bush presidencies. Bandar was to be treated like any other ambassador.
.. when Clinton needed a quote from the Koran to go alongside those from the Old and New Testament for a ceremony marking an Israeli-Palestinian accord, he turned to the Saudi ambassador.
.. Before Donald Trump assumed office, he frequently bashed the Saudis and threatened to cease oil purchases from the Kingdom, grouping them with freeloaders who had taken advantage of America. But after the Saudis feted him with sword dances and bestowed on him the highest civilian award when he visited the Kingdom on his first trip abroad as US president, he changed his tune.
.. Even the terror attacks of September 11, 2001, could not damage the relationship. Though al-Qaeda leader Osama bin Laden, himself a Saudi national, recruited 15 of the 19 hijackers from the Kingdom, senior Saudi officials dismissed the implications. In a November 2002 interview, the Saudi interior minister simply deemed it “impossible,” before attempting to redirect blame by accusing Jews of “exploiting” the attacks and accusing the Israeli intelligence services of having relationships with terrorist organizations.
.. Bandar provided key insights and advice as President George W. Bush planned the 2003 Iraq invasion.

.. But Saudi Arabia wears too many hats for America to abandon it easily. Though the US no longer needs Saudi oil, thanks to its shale reserves,

  • it does need the Kingdom to regulate production and thereby stabilize markets.
  • American defense contractors are dependent on the billions the Kingdom spends on military hardware.
  • Intelligence cooperation is crucial to ferreting out jihadists and thwarting their plots. But, most important,
  • Saudi Arabia is the leading Arab bulwark against Iranian expansionism. The Kingdom has supported proxies in Lebanon, Syria, and Yemen to contain Iran’s machinations. Any steps to hold the Saudis responsible for Khashoggi’s death would force the US to assume responsibilities it is far more comfortable outsourcing.

.. When the United Kingdom, the region’s colonial master and protector, decided that it could no longer afford such financial burdens, US leaders ruled out taking its place. Policymakers were too focused on Vietnam to contemplate action in another theater. Instead, Secretary of State Henry Kissinger conceived a policy whereby Iran and Saudi Arabia, backed by unlimited US military hardware, would police the Gulf. While Iran stopped playing its role following the 1979 Islamic Revolution, the Saudis still do.

.. It is not only defense contractors who are going to bat for the Saudis. Before Khashoggi became Washington’s topic du jour, the Saudis paid about ten lobbying firms no less than $759,000 a month to sing their praises in America’s halls of power.

.. Former Saudi bashers such as Prime Minister Binyamin Netanyahu’s confidant Dore Gold now meet with the Kingdom’s officials. Following the 2013 military coup that toppled Egypt’s democratically elected government, Israeli leaders urged US officials to embrace the generals. They are likely to do the same today if US anti-Saudi sentiment imperils their Iran strategy.

.. in the wake of Khashoggi’s disappearance, common interests and mutual dependence will almost certainly prevail over the desire to hold the Saudis to the standards expected of other close US allies.

Trump Shows Us the Way

Donald Trump slipped into the Oval Office through a wormhole of confusion about the American identity.

.. We were moving from a white-majority, male-dominated country and manufacturing base to a multicultural, multilateral, globalized, P.C., new energy, new technology world, without taking account of the confusion and anger of older Americans who felt like strangers in a strange land.

.. And we certainly don’t want men like Rob Porter who have punched, kicked, choked and terrorized their wives to be in the president’s inner circle, helping decide which policies, including those that affect women, get emphasized.

.. We don’t want the White House chief of staff to be the sort of person who shields and defends abusers — and then dissembles about it — simply because the abuser is a rare competent staffer. Or a man who labels Dreamers “too lazy to get off their asses” simply because they didn’t apply for legal protections in time.

.. John Kelly served as a character witness not only for Porter, after he didn’t receive security clearance because F.B.I. agents had heard the harrowing tales from his battered ex-wives. Kelly also testified as a character witness for Gen. Robert E. Lee and a former Marine who pleaded guilty to sending inappropriate sexual messages to female subordinates; who drove drunk to an arraignment; and who got charged in Virginia with sex crimes against children.

.. As a more lucid Trump tweeted in 2012 about Rihanna getting back together with Chris Brown, “A beater is always a beater.”

.. We don’t want a president who bends over backward to give the benefit of the doubt to neo-Nazis, wife beaters, pedophiles and sexual predators — or who is a sexual predator himself.

.. We don’t want a president who flips the ordinary equation, out of some puerile sense of grievance, to honor Russia and dishonor the F.B.I.

.. We don’t want a president who is too shallow to read his daily intelligence report and too obsessed with the deep state to deal fairly with our intelligence agencies.

.. We don’t want a president who suggests that Democrats who don’t clap for him are treasonous and who seems more enthralled by authoritarian ways than democratic ones.

.. who loves generals but trashes Gold Star parents

.. who wants the sort of chesty military parade that we mock Kim Jong-un for, a phallic demonstration of overcompensation that would only put more potholes in the D.C. boulevards.

.. one who could be so easily trapped in lies that he can’t even be allowed to talk to an investigator.

.. And, finally, we surely don’t want a president who seeks advice on foreign affairs from Henry Kissinger. Ever. Again.

Jared Kushner Is China’s Trump Card

How the President’s son-in-law, despite his inexperience in diplomacy, became Beijing’s primary point of interest.

.. Kushner was intent on bringing a businessman’s sensibility to matters of state. He believed that fresh, confidential relationships could overcome the frustrations of traditional diplomatic bureaucracy. Henry Kissinger, who, in his role as a high-priced international consultant, maintains close relationships in the Chinese hierarchy, had introduced Kushner to Cui during the campaign
.. On at least one occasion, they met alone, which counterintelligence officials considered risky. “There’s nobody else there in the room to verify what was said and what wasn’t, so the Chinese can go back and claim anything,”
..  you think your background is going to allow you to be able to outsmart the Chinese Ambassador?
.. Americans are accustomed to reports of Russia’s efforts to influence American politics, but, in the intelligence community, China’s influence operations are a source of equal concern.
.. “The Chinese influence operations are more long-term, broader in scope, and are generally designed to achieve a more diffuse goal than the Russians’ are,”
.. Kushner often excluded the government’s top China specialists from his meetings with Cui, a slight that rankled and unnerved the bureaucracy. “He went in utterly unflanked by anyone who could find Beijing on a map,”
.. Kushner was “their lucky charm,”
.. “It was a dream come true. They couldn’t believe he was so compliant.”
.. By the end of the Obama Administration, seven White House officials were authorized to receive the same version of the P.D.B. that appeared on the President’s iPad. The Trump Administration expanded the number to as many as fourteen people, including Kushner. A former senior official said, of the growing P.D.B. distribution list, “It got out of control. Everybody thought it was cool. They wanted to be cool.”
.. Kushner’s difficulty obtaining a permanent security clearance has become a subject of fascination. Was it his early failure to disclose foreign contacts? Or did it have something to do with the investigations into Russian interference in the 2016 elections?
.. Kushner had established links to China. A Kushner project in Jersey City, which opened in November, 2016, reportedly received about fifty million dollars, nearly a quarter of its financing, from Chinese investors who are not publicly named, through a U.S. immigration program known as EB-5, which allows wealthy foreigners to obtain visas by investing in American projects.
.. Ivanka Trump has her own business endeavors in China, where some of her branded handbags, shoes, and clothes are manufactured.
.. Trump would be “inundated with requests for thousands of calls from around the world,” they warned, through “campaign staff, outside advisers, and other third parties.” He must not accept them. Requests must be “methodically returned” in “a sequence of calls that will not create any diplomatic incidents or negative press stories.”
.. The President-elect must have a classified intelligence briefing before conversations with foreign leaders, and then conduct the meetings only when a note-taker and a national-security aide are present.
The aides suggested that Trump make five “waves” of calls over a number of days, starting with the United Kingdom and ending with Pakistan.

.. “Obviously, all that just got tossed aside,” a senior transition official recalled recently, because Trump was “excited that important people were calling him.”

.. In another break with protocol, Trump was accompanied to the meeting by his daughter and son-in-law, while they were still running their respective businesses.

..  he was urgently seeking an infusion of cash to repay a debt totalling hundreds of millions of dollars.

.. In 2007, the Kushner Companies had bought 666 Fifth Avenue, a forty-one-story office tower, for $1.8 billion, the highest price ever paid for a building in Manhattan at that time. The deal turned out to be a potential disaster for Kushner.

.. he was hunting for investors, in Asia and the Middle East, among other places, to shore up the building’s finances.

.. On November 16, 2016, Kushner had a private dinner with Wu Xiaohui, the chairman of China’s Anbang Insurance Group, to discuss Wu’s possible investment in 666 Fifth Avenue.

.. Months later, when the meeting was revealed, and Bloomberg News reported that the Kushner family stood to make as much as four hundred million dollars from the agreement with Anbang, Democratic lawmakers, including Senator Elizabeth Warren, of Massachusetts, criticized it as a possible conflict of interest. The companies abandoned the negotiations.

.. In some cases, it was unclear whether Kushner was representing the transition or his business. On December 13th, at the recommendation of Sergey Kislyak, the Russian Ambassador, Kushner met with Sergey Gorkov, the head of Vnesheconombank, or V.E.B., a Russian state bank.

.. Schiff pointed to statements by V.E.B. and a spokesman for Russia’s President, Vladimir Putin, which suggest that Kushner held the meeting in his capacity as head of the Kushner Companies.
.. On December 2nd, encouraged by the fiercest anti-China hawks among his advisers, including Steve Bannon, at that time his chief strategist, Trump took a telephone call from the President of Taiwan
.. Chinese officials turned to the man that Kissinger had recommended to them: Jared Kushner. Kushner later told others that he took on the China portfolio reluctantly, after “clamoring” Chinese officials called Trump Tower and asked for him by name.
.. “It was clear that heated arguments were taking place among the President’s advisers.” On one side, hard-liners, including Bannon, who has said he believes that China is “bent on world domination,” advocated a confrontational stance on trade and other issues. On the other, according to Russel, “Jared Kushner was described as adamant that Mar-a-Lago should be exclusively about bonding.” Russel continued, “We were told that the theory was to first establish a warm family friendship, using meals and Trump’s personal charisma.”
..  China overwhelmingly achieved its objectives: a soft-focus summit with regal photo ops and little talk of trade and other touchy subjects. It was also an auspicious occasion for the Kushner family. While Xi met with Trump, Beijing regulators approved three trademark applications from Ivanka’s company, to sell bags, jewelry, and spa services.
.. Somebody with more experience, tied to the old ways, may not have necessarily been able to pull off the Mar-a-Lago summit like we did.” He added that the officials who have criticized his approach to foreign affairs “usually get pretty uncomfortable when they’re not in control of something and it doesn’t go the way they want.”

..  Chinese officials said that Cui and Kushner, in meetings to prepare for the summit at Mar-a-Lago, discussed Kushner’s business interests along with policy. Some intelligence officials became concerned that the Chinese government was seeking to use business inducements to influence Kushner’s views.
.. But the intelligence reports triggered alarms that Chinese officials were attempting to exploit Kushner’s close relationship with the President, which could yield benefits over time.
.. Wendi Deng Murdoch, the ex-wife of Rupert Murdoch. Kushner and Ivanka Trump had known her for about a decade, and she was a regular guest at their Washington home. U.S. diplomats and intelligence officials have long speculated about Wendi Murdoch’s ties to the Chinese government
.. In November, the Chinese Society of Education issued a video quiz for primary-school students, which included the question “What number should you dial when you spot spying activities?”
.. The President’s children resist the argument that their undivested assets, their behavior, and their willingness to mix government service and personal profit present a target to adversaries and allies alike.
.. The senior transition official believes that’s a mistake. “They’re going to slowly, over time, get what they want out of him, and it’s not going to be obvious,”
.. Still, by his own description, he is as confident as ever that his instincts, honed in the family business
.. Porter read aloud from “The Inner Ring,” a 1944 oration by C. S. Lewis. It was Porter’s warning to his ambitious students about the temptations that haunt higher office, and the allure of favor-seekers.
..  “You will be drawn in, if you are drawn in, not by desire for gain or ease, but simply because at that moment, when the cup was so near your lips, you cannot bear to be thrust back again into the cold outer world.”

Making China Great Again

As Donald Trump surrenders America’s global commitments, Xi Jinping is learning to pick up the pieces.

The hero, Leng Feng, played by the action star Wu Jing (who also directed the film), is a veteran of the “wolf warriors,” special forces of the People’s Liberation Army. In retirement, he works as a guard in a fictional African country, on the frontier of China’s ventures abroad. A rebel army, backed by Western mercenaries, attempts to seize power, and the country is engulfed in civil war. Leng shepherds civilians to the gates of the Chinese Embassy, where the Ambassador wades into the battle and declares, “Stand down! We are Chinese! China and Africa are friends.” The rebels hold their fire, and survivors are spirited to safety aboard a Chinese battleship.

.. For decades, Chinese nationalism revolved around victimhood: the bitter legacy of invasion and imperialism, and the memory of a China so weak that, at the end of the nineteenth century, the philosopher Liang Qichao called his country “the sick man of Asia.” “Wolf Warrior II” captures a new, muscular iteration of China’s self-narrative, much as Rambo’s heroics expressed the swagger of the Reagan era.

.. “In the past, all of our movies were about, say, the Opium Wars—how other countries waged war against China,” he said. “But Chinese people have always wanted to see that our country could, one day, have the power to protect its own people and contribute to peace in the world.”

.. For years, China’s leaders predicted that a time would come—perhaps midway through this century—when it could project its own values abroad. In the age of “America First,” that time has come far sooner than expected.

.. Trump often portrays America’s urgent task as one of survival. As he put it during the campaign, “At what point do you say, ‘Hey, we have to take care of ourselves’? So, you know, I know the outer world exists and I’ll be very cognizant of that, but, at the same time, our country is disintegrating.”
.. China’s approach is more ambitious. In recent years, it has taken steps to accrue national power on a scale that no country has attempted since the Cold War, by increasing its investments in the types of assets that established American authority in the previous century: foreign aid, overseas security, foreign influence, and the most advanced new technologies, such as artificial intelligence.
.. It has become one of the leading contributors to the U.N.’s budget and to its peacekeeping force, and it has joined talks to address global problems such as terrorism, piracy, and nuclear proliferation.
.. This was an ironic performance—for decades, China has relied on protectionism—but Trump provided an irresistible opening. China is negotiating with at least sixteen countries to form the Regional Comprehensive Economic Partnership, a free-trade zone that excludes the United States, which it proposed in 2012 as a response to the T.P.P. If the deal is signed next year, as projected, it will create the world’s largest trade bloc, by population.
.. By setting more of the world’s rules, China hopes to “break the Western moral advantage,” which identifies “good and bad” political systems
.. Meng Hongwei, a Chinese vice-minister of public security, became the first Chinese president of Interpol, the international police organization; the move alarmed human-rights groups, because Interpol has been criticized for helping authoritarian governments target and harass dissidents and pro-democracy activists abroad.

.. Moreover, China’s economic path is complicated by heavy debts, bloated state-owned enterprises, rising inequality, and slowing growth. The workers who once powered China’s boom are graying.

.. In 2000, the U.S. accounted for thirty-one per cent of the global economy, and China accounted for four per cent. Today, the U.S.’s share is twenty-four per cent and China’s fifteen per cent.

.. in the past we were used to going to the White House to get our work done,” Shivshankar Menon, India’s former foreign secretary and national-security adviser to the Prime Minister, told me. “Now we go to the corporations, to Congress, to the Pentagon, wherever.”

.. everybody else in the world will look around and say, I want to be friends with both the U.S. and the Chinese—and the Chinese are ready, and I’ll start with them.”

.. He presented China as “a new option for other countries,” calling this alternative to Western democracy the zhongguo fang’an, the “Chinese solution.”

.. The state press ran a profile of Xi that was effusive even by the standards of the form, depicting him as an “unrivalled helmsman,” whose “extensive knowledge of literature and the arts makes him a consummate communicator in the international arena.”

.. Xi has inscribed on his country a rigid vision of modernity. A campaign to clean up “low-end population” has evicted migrant workers from Beijing, and a campaign against dissent has evicted the most outspoken intellectuals from online debate.

.. Foreign universities with programs in China, such as Duke, have been advised that they must elevate a Communist Party secretary to a decision-making role on their local boards of trustees.

.. The Party is encouraging dark imaginings about the outside world: posters warn the public to “protect national secrets” and to watch out for “spies.”

.. Last June, Yao Chen, one of China’s most popular actresses, received a barrage of criticism online after she tried to raise awareness of the global refugee crisis. (She was forced to clarify that she was not calling for China to accept refugees.)

.. In Rao’s view, Trump’s “America First” slogan is an honest declaration, a realist vision stripped of false altruism and piety.

.. “In this world, power speaks,” he said, making a fist, a gesture that Trump adopted in his Inauguration speech and Xi displayed in a photo taken at the start of his new term.

.. “I think Trump is America’s Gorbachev.” In China, Mikhail Gorbachev is known as the leader who led an empire to collapse. “The United States will suffer,” he warned.

.. In 1991, when Bush, Sr., launched the war against Iraq, it got thirty-four countries to join the war effort. This time, if Trump launched a war against anyone, I doubt he would get support from even five countries.

.. For Chinese leaders, Yan said, “Trump is the biggest strategic opportunity.” I asked Yan how long he thought the opportunity would last. “As long as Trump stays in power,” he replied.

.. When Trump won, the Party “was in a kind of shock,”

.. “They feared that he was their mortal enemy.” The leadership drafted potential strategies for retaliation, including threatening American companies in China and withholding investment from the districts of influential members of Congress.

.. Before he entered the White House, China started assembling a playbook for dealing with him.

.. “China knows Trump can be unpredictable, so we have weapons to make him predictable, to contain him. He would trade Taiwan for jobs.”

.. there were two competing strategies on China. One, promoted by Stephen Bannon, then the chief strategist, wanted the President to take a hard line, even at the risk of a trade war. Bannon often described China as a “civilizational challenge.” The other view was associated with Jared Kushner, Trump’s son-in-law and adviser, who had received guidance from Henry Kissinger and met repeatedly with the Chinese Ambassador, Cui Tiankai. Kushner argued for a close, collegial bond between Xi and Trump, and he prevailed.

.. While Xi was at the resort, the Chinese government approved three trademark applications from Ivanka’s company, clearing the way for her to sell jewelry, handbags, and spa services in China.

.. During the transition, Kushner dined with Chinese business executives while the Kushner Companies was seeking their investment in a Manhattan property.

.. In May, Kushner’s sister, Nicole Kushner Meyer, was found to have mentioned his White House position while she courted investors during a trip to China.

.. During the Mar-a-Lago meetings, Chinese officials noticed that, on some of China’s most sensitive issues, Trump did not know enough to push back.

.. “Trump is taking what Xi Jinping says at face value—on Tibet, Taiwan, North Korea,”

.. “The Chinese felt like they had Trump’s number,” he said. “Yes, there is this random, unpredictable Ouija-board quality to him that worries them, and they have to brace for some problems, but, fundamentally, what they said was ‘He’s a paper tiger.’ Because he hasn’t delivered on any of his threats. There’s no wall on Mexico. There’s no repeal of health care. He can’t get the Congress to back him up. He’s under investigation.”

.. a Beijing think tank, published an analysis of the Trump Administration, describing it as a den of warring “cliques,” the most influential of which was the “Trump family clan.”

.. The Trump clan appears to “directly influence final decisions” on business and diplomacy in a way that “has rarely been seen in the political history of the United States,” the analyst wrote. He summed it up using an obscure phrase from feudal China: jiatianxia—“to treat the state as your possession.”

Bannon’s departure has huge implications for the U.S.-China relationship

“Bannon’s particular unique idea was that this is a civilizational challenge,” said Michael Pillsbury, who met with Bannon regularly on China over the past year. “His warning is, if they surpass us, they will have earned the privilege of redesigning the world order.”

.. Bannon believes the United States needs a long-term strategy for maintaining advantage over China similar to what Marshall helped devise for the Soviet Union, while acknowledging that the China challenge is much harder.

.. Behind the scenes, Bannon had been busily operationalizing his plan to win the economic war with China. He spent 50 percent of his time on China, he liked to tell colleagues. Several of his China agenda items will continue to have advocates, including National Trade Council Director Peter Navarro and Commerce Secretary Wilbur Ross.

.. he was opposed by other top officials, including National Economic Director Gary Cohn and Treasury Secretary Steven Mnuchin.

.. The Chinese government has also cultivated close ties with Jared Kushner and Secretary of State Rex Tillerson, with the help of former secretary of state Henry Kissinger.

.. The Kushner-Kissinger view holds that the U.S.-China relationship is too complex and important to risk throwing into disarray. They advocate cooperation over confrontation and integration over isolation. China shares that view and wants to set forth a new model of great power relations based on mutual respect and noninterference.

In Bannon’s view, the liberal international order the United States led since World War II has ceased to work in America’s interests. The theory that bringing China into that structure would transform China has failed and now the Chinese government abuses those systems to siphon huge amounts of wealth, technology and know-how from the United States and its partners, he believes.

He also sees a new China policy as a pillar of his plan to reorient American politics around economic nationalism. He views the rebalancing of the U.S.-China economic relationship as key to returning manufacturing jobs to the United States and vice-versa.

.. One of Bannon’s final acts before leaving the administration was to announce in an interview that to him, “the economic war with China is everything.” He argued the United States must marshal all elements of national power to confront China in various spheres or yield world hegemony.

“Bannon’s particular unique idea was that this is a civilizational challenge,” said Michael Pillsbury, who met with Bannon regularly on China over the past year. “His warning is, if they surpass us, they will have earned the privilege of redesigning the world order.”