Are the US and China Decoupling? What are the Consequences for the Global Order?
Director of the Asia Society’s Center on US-China Relations
Professor Emeritus, UC Berkeley.
Orville Schell is the Director of the Asia Society’s Center on US-China Relations in New York City. He leads new programs on the environment, the media and foreign policy in an effort to promote more constructive dialogue between key Chinese and American leaders. He is a Fellow at the Weatherhead East Asian Institute at Columbia University, a Senior Fellow at the Annenberg School of Communications at USC and a member of the Council on Foreign Relations. He is the author of fifteen books, ten of them about China.
Co-sponsored by the John Sloan Dickey Center for International Understanding and the Tuck School of Business at Dartmouth.
Aug.28 — Art Hogan, chief market strategist at National Securities, examines a Bloomberg Economics study of 700,000 data points that shows China with a trade war edge over the U.S. He speaks on “Bloomberg Daybreak: Americas.”
Peter Navarro, assistant to the president and director of the office of trade and manufacturing policy, joins CNBC’s “Squawk Box” team to discuss reports the U.S. is considering restrictions on Chinese companies and the latest in the trade talks with China.
From Australia to Europe, the signs are multiplying that conservative populism is on the rise.
Sometimes political revolutions occur right before our eyes without us quite realizing it. I think that’s what’s been happening over the last few weeks around the world, and the message is clear: The populist “New Right” isn’t going away anytime soon, and the rise of the “New Left” is exaggerated.
Start with Australia, where Prime Minister Scott Morrison won a surprising victory last week. Before the election, polls had almost uniformly indicated that his Liberal-National Coalition would have to step down, but voters were of another mind. With their support of Morrison, an evangelical Christian who has expressed support for President Donald Trump, Australians also showed a relative lack of interest in doing more about climate change. And this result is no fluke of low turnout: Due to compulsory voting, most Australians do turn out for elections.
Or how about the U.K.? The evidence is mounting that the Brexit Party will do very well in this week’s European Parliament elections. Right now that party, which did not exist until recently, is in the lead in national polls with an estimated 34% support. The Tories, the current ruling party, are at only 12%. So the hard Brexit option does not seem to be going away, and the right wing of British politics seems to be moving away from the center.
As for the European Parliament as a whole, by some estimates after this week’s election 35% of the chamber will be filled by anti-establishment parties, albeit of a diverse nature. You have to wonder at what margins the EU will become unworkable or lose legitimacy altogether.
Meanwhile in the U.S., polls show Joe Biden as the presumptive front-runner for the Democratic presidential nomination. He is one of the party’s more conservative candidates, and maybe some primary voters value his electability and familiarity over the more left-wing ideas of Bernie Sanders and Elizabeth Warren. That’s one sign the “hard left” is not in ascendancy in the U.S. Biden’s strategy of running against Trump is another. It’s hard to say how effective that will prove, but it is likely to result in an election about the ideas and policies of Trump, not those of Democratic intellectuals.
Meanwhile, the U.S. economy has remained strong, and Trump’s chances of re-election have been rising in the prediction markets.
One scarcely noticed factor in all of this has been the rising perception of China as a threat to Western interests. The American public is very aware that the U.S. is now in a trade war with China, a conflict that is likely to provoke an increase in nationalism. That is a sentiment that has not historically been very helpful to left-wing movements. China has been one of Trump’s signature causes for years, and he seems to be delighting in having it on center stage.
The Democratic Party is not well-positioned to make China a core issue. Democrats have been criticizing Trump’s tariffs for a while now, and it may be hard for them to adjust their message from “Tariffs Are Bad” to “Tariffs Are Bad But China Tariffs Are OK.” Their lukewarm support for free trade agreements — especially the Trans Pacific Partnership, which could have served as a kind of alternative China trade policy — also complicates matters. The net result is that Republicans will probably be able to use the China issue to their advantage for years to come.
Elsewhere, the world’s largest democracy just wrapped up a lengthy election. The results in India aren’t yet known, but exit polls show that Prime Minister Narendra Modi’s ruling coalition — and his philosophy of Hindu nationalism — will continue to be a major influence.
In all of this ferment, I am myself rooting for a resurgence of centrist cosmopolitanism. But I try to be honest about how my ideas are doing in the world. And in the last few weeks, I’ve seen a lot of evidence that a new political era truly is upon us.