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.”

 

Mnuchin defends Trump’s comments on Charlottesville, rebuffs calls to resign

“While I find it hard to believe I should have to defend myself on this, or the president, I feel compelled to let you know that the president in no way, shape or form believes that neo-Nazi and other hate groups who endorse violence are equivalent to groups that demonstrate in peaceful and lawful ways,” Mnuchin, who is Jewish, said in a statement released by the Treasury Department.

.. A letter signed by about 300 members of the Yale class of 1985 argued that it was Mnuchin’s “moral obligation” to resign because Trump had “declared himself a sympathizer with groups whose values are antithetical to those values we consider fundamental to our sacred honor as Americans.”

.. But Mnuchin argued that Trump’s comments were misrepresented and pointed to an earlier statement in which he urged Americans to “condemn all that hate stands for.”

“Our President deserves the opportunity to propose his agenda and to do so without the attempts by those who opposed him in the primaries, in the general election and beyond to distract the administration and the American people from these most important policy issues — jobs, economic growth and national security,” Mnuchin said.

Donald Trump’s Crisis of Legitimacy

morning papers were full of stories demonstrating that his political legitimacy, or what small reserves he had left of it, was steadily draining away. After days of prevaricating, America’s business leaders were finally abandoning him en masse.

  • Top generals from all five military branches were issuing statements implicitly rebuking him.
  • Many White House staffers were despairing of him.
  • And even some members of the Society for the Protection of Spineless Conservative Politicians, otherwise known as the leadership of the Republican Party, were starting to distance themselves from him, albeit hesitantly and anonymously, via leaks to journalists and statements from well-connected intermediaries

.. “I see no equivalence between those who propound fascist views and those who oppose them,” Theresa May, the British Prime Minister, said in a statement.

.. It is now clear that when Trump announced on Wednesday that he was disbanding two White House advisory councils made up of C.E.O.s and other business bigwigs, he was telling another one of his tall tales. One of the groups, a council on manufacturing, had already agreed to disband itself, because its members could no longer justify (to their employees, stockholders, and customers) coöperating with the cretin who said there were some “very fine people” among the torch-wielding protesters who marched through Charlottesville on Friday night, chanting “blood and soil” and “Jews won’t replace us.”

.. As of this writing, none of Trump’s aides has resigned in protest at the President’s statements. But a number of them have been busy getting the story out that they are mad as hell.

  • Three different sources told the Times that Gary Cohn, Trump’s top economic adviser, who is Jewish, was incensed by the President’s remarks. The Washington Post reported that
  • John Kelly, the former Marine general who took over as the White House chief of staff a couple of weeks ago, with a mandate to impose some order on all the chaos, had been left “deeply frustrated and dismayed;
  •  Bloomberg reported that Steve Mnuchin, the Treasury Secretary, who was standing next to Trump at Tuesday’s Trump Tower press conference, had gathered his staff together and assured them that he had no idea that the President was going to say what he did.

.. Before composing his ode to the statues of Confederate leaders, he tore into two Republican senators who had dared to criticize him by name for what he said about Charlottesville: Lindsey Graham, of South Carolina, and Jeff Flake, of Arizona. In one tweet, he described Graham as a “publicity seeker.”

In another, he endorsed a little-known Republican politician who is challenging Flake in a primary race: “Great to see that Dr. Kelli Ward is running against Flake Jeff Flake, who is weak on borders, crime and a non-factor in Senate. He’s toxic!”

.. Bannon described the Unite the Right marchers as “a fringe element” and “a collection of clowns.” But that seemed like an effort to have it both ways, which is a familiar Bannon tactic. As the head of Breitbart News, he gave an influential platform to elements of the alt-right but vehemently denied that the site was racist.

.. “If the left is focused on race and identity, and we go with economic nationalism, we can crush the Democrats,” Bannon told Kuttner.

..“Trump is using the precious capital of the bully pulpit to talk about confederate monuments in between savage attacks on fellow Republicans,” Holmes, the former aide to McConnell, told Politico Playbook. “Just think about that.

  • Not tax reform.
  • Not repeal and replace.
  • Not North Korean nuclear capabilities.
  • No focused critiques on extremely vulnerable Democrats who have opposed him at every possible turn.”

.. While McConnell and Paul Ryan, the Speaker of the House, have both put out statements saying that racism and white supremacism have no place in the G.O.P., neither of them has explicitly criticized Trump. Even now, most Republicans are too intent on pursuing their regressive policy agenda, and too frightened of incurring the wrath of the Trump-supporting hordes going into the 2018 midterms, to do what almost all of them must know, deep down, is the right thing.

.. Outside the arena of national security, the Presidency is a weak office; to get anything substantial done, the person in the Oval Office has to put together coalitions, bringing along powerful people and interest groups. As the health-care fiascodemonstrated, Trump wasn’t very good at that stuff to begin with—forgive the understatement—and he has just greatly compounded his difficulties.

.. By dint of his pigheadedness, or prejudice, or both, he has moved onto political ground that makes it virtually impossible for other people in influential positions ..  to stand with him, or even to be seen to coöperate with him. That is what happens when a President throws away his own legitimacy.

.. Trump may have convinced himself that he doesn’t need political allies, or corporate advisers, or anybody else—that he can bully his opponents into submission and succeed through simple force of will. Maybe he thinks that invoking the memories of Lee and Jackson, the Southern battlefield commanders, will help his cause. It won’t: the fate of the Confederacy was settled more than a hundred and fifty years ago, and right now, Trump’s Presidency seems headed to a similarly ignominious ending.

Trump Gives White Supremacists an Unequivocal Boost

President Trump buoyed the white nationalist movement on Tuesday as no president has done in generations — equating activists protesting racism with the neo-Nazis and white supremacists who rampaged in Charlottesville, Va., over the weekend

.. angrily asserting that so-called alt-left activists were just as responsible for the bloody confrontation as marchers brandishing swastikas, Confederate battle flags, anti-Semitic banners and “Trump/Pence” signs.

.. But members of the president’s staff, stunned and disheartened, said they never expected to hear such a voluble articulation of opinions that the president had long expressed in private. National Economic Council Chairman Gary Cohn and Treasury Secretary Steven T. Mnuchin, who are Jewish, stood by uncomfortably as the president exacerbated a controversy that has once again engulfed a White House in disarray.

.. And of the demonstrators who rallied on Friday night, some chanting racist and anti-Semitic slogans, he said, “You had a lot of people in that group that were there to innocently protest and very legally protest.”

Since the 1960s, Republican politicians have made muscular appeals to white voters, especially those in the South, on broad cultural grounds. But as a rule, they have taken a hard line on the party’s racist, nativist and anti-Semitic fringe. Ronald Reagan, George Bush and George W. Bush roundly condemned white supremacists.

.. In 1991, the first President Bush took on Mr. Duke, who was then seeking the governor’s seat in Louisiana, saying, “When someone has so recently endorsed Nazism, it is inconceivable that someone can reasonably aspire to a leadership role in a free society.”

.. But his unifying tone, which his staff characterized as more traditionally presidential, quickly gave way to a more familiar Trump approach.

No sooner had he delivered the Monday statement than he began railing privately to his staff about the press. He fumed to aides about how unfairly he was being treated, and expressed sympathy with nonviolent protesters who he said were defending their “heritage,” according to a West Wing official.

.. Mr. Trump prides himself on an unapologetic style he learned from his father Fred Trump, a New York City housing developer, and Roy Cohn, a combative lawyer who served as an aide to Senator Joseph McCarthy in the 1950s.

.. The president was about to revert to his initial, more defiant stance. As Mr. Trump approached the microphone in the lobby of Trump Tower on Tuesday, aides winced at the prospect of an unmediated president. With good reason.

.. the hiring of Mr. Kelly, who was to impose discipline on a chaotic West Wing.

.. He added that efforts by the president to equate the actions of the counter-protesters, however violent they may have been, with the neo-Nazis and the driver of the car that murdered a protester were “unacceptable.”

“There’s no moral equivalence,” Mr. Cantor said.