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.”

 

Sean Spicer Resigns as White House Press Secretary

Mr. Trump asked Mr. Spicer to stay on as press secretary, reporting to Mr. Scaramucci. But Mr. Spicer rejected the offer, expressing his belief that

  • Mr. Scaramucci’s hiring would add to the confusion and uncertainty already engulfing the White House,

according to two people with direct knowledge of the exchange.

  • The president’s health care effort foundered in the Senate last week, and next week promises no respite, with his son
  • Donald Trump Jr. and son-in-law, Jared Kushner, due to testify before Congress on questions about their contacts with Russia.

His rapport with the president establishes a new power center in a building already bristling with rivalry.

The president has no intention of changing his behavior — he merely believes his communications staff needs to defend him better — and Mr. Scaramucci even suggested his role would be to unshackle an already unfettered president.

.. “We have accomplished so much, and we are being given credit for so little,” he said. “The good news is the people get it, even if the media doesn’t.”

.. He had hoped to last a year as press secretary. He quit after six months and a day.

.. He attained a notoriety unusual for a presidential spokesman, his combative style spawning a caricature on “Saturday Night Live.”

.. The eventual appointment of Mr. Scaramucci was backed by the president’s daughter

  • Ivanka,
  • Mr. Kushner and the commerce secretary,
  • Wilbur Ross

.. Mr. Kushner has grown increasingly critical of both Mr. Spicer and Mr. Priebus, whom he regards as party establishment figures who operate out of self-interest.

.. Mr. Priebus and Stephen K. Bannon, the president’s chief strategist, both strongly opposed the appointment of Mr. Scaramucci — in large part because he enjoys an easy banter and direct line to Mr. Trump, potentially threatening their positions

Mr. Trump, aggravated by their opposition, dressed the pair down in a testy Oval Office exchange around the time he decided to offer Mr. Scaramucci — known in Trump’s circle as “The Mooch” — the job.

.. one of the reasons he hired Mr. Scaramucci was to cut down on anonymous leaking — and took a swipe at his two advisers.

.. He asked them how the leaks were happening, according to a person familiar with the discussions, and called Mr. Spicer a “good guy” who leaks only when told to by Mr. Priebus.

.. He is said to be especially high on Sebastian Gorka, a blustery foreign policy official who has been accused of having ties to far-right groups in Europe.

.. Mr. Priebus urged Mr. Trump to hire Mr. Spicer and another lieutenant, Katie Walsh, as deputy chief of staff. But Ms. Walsh left the White House after a short time when Mr. Kushner and other West Wing officials forced her out

.. In recent weeks, Mr. Trump had told people that Mr. Spicer was no longer “tough,” one of the harshest insults he can level

.. Mr. Spicer told friends he was tired of being blindsided by Mr. Trump, and weary of Mr. Trump’s constant criticism.

.. He instituted the highly contentious practice of holding off-camera briefings, less so to snub reporters than to avoid Mr. Trump’s critiques of his performance

Canada’s Trump Strategy: Go Around Him

Laid in the first days after Mr. Trump’s election win, the plan even enlists Brian Mulroney, a former Conservative prime minister and political nemesis of Mr. Trudeau’s father, who had also been prime minister. Mr. Mulroney knows Mr. Trump and his commerce secretary, Wilbur Ross, from social circuits in southern Florida, where all three keep vacation homes.

.. Though emphasizing the benefits of harmony, the Canadians are not above flexing muscle, with a provincial government at one point quietly threatening trade restrictions against New York State.

.. His new foreign minister, Chrystia Freeland, a former journalist with long experience in the United States and an unapologetic champion of the global liberal order, is seen as able to coax the Americans when possible and defy them when necessary.

Ms. Freeland’s team of America-whisperers includes Andrew Leslie, a former lieutenant general and Afghanistan veteran who knows many of the American generals filling out Mr. Trump’s administration.

Mr. Trudeau established a “war room” dedicated to the United States, headed by Brian Clow

.. Ministers’ schedules resemble those of rock bands on summer tours. They travel armed with data on the precise dollar amount and number of jobs supported by Canadian firms and trade in that area.

.. when Mr. Trump announced that the United States would leave the Paris climate agreement. Canadian officials said they would instead seek climate deals with American states, many of which were already in progress.

Inside Trump’s White House, New York moderates spark infighting and suspicion

Led by Gary Cohn and Dina Powell — two former Goldman Sachs executives often aligned with Trump’s eldest daughter and his son-in-law — the group and its broad network of allies are the targets of suspicion, loathing and jealousy from their more ideological West Wing colleagues.

.. led by chief strategist Stephen K. Bannon, who has grown closer to Chief of Staff Reince Priebus in part to counter the New Yorkers.

.. Would he jet to New York at the invitation of Canada’s progressive hero, Prime Minister Justin Trudeau, to attend a Broadway performance of “Come From Away,” a musical that showcases the generosity of foreigners?

Or would he fly to Nashville to dip his head in reverence at the gravesite of Andrew Jackson and yoke himself to the nationalist legacy of America’s seventh president?

.. An unexpected political marriage has formed between Bannon, with his network of anti-establishment conservative populists, and Priebus, who represents a wing of more traditional Republican operatives.

.. Kushner and Cohn are particularly close with the Cabinet’s industry barons — Commerce Secretary Wilbur Ross, Treasury Secretary Steven Mnuchin and Secretary of State Rex Tillerson — as well as Chris Liddell and Reed Cordish, two businessmen recruited by Kushner to work on long-term projects.

.. many people inside and outside the White House frequently note the growing visibility of Cohn and Powell and wonder if they might eventually gain influence over Trump’s message and moderate it from Bannon-style populism, especially if the president’s popularity wanes further.

.. The tug at Trump forces near-daily decisions between following his tendency to gravitate toward those he considers highly successful in business and maintaining the combative political persona cheered by many conservatives.

.. Trump expanded Powell’s portfolio this past week, naming her deputy national security adviser for strategy in addition to her post as senior counselor for economic initiatives.

Born in Egypt and fluent in Arabic, Powell is taking on a more visible role in foreign affairs.

.. Powell has tapped the network she cultivated as a George W. Bush administration official and as president of Goldman’s philanthropic foundation

.. [Cohen] is opinionated and sharp-elbowed, walking between offices with the swagger befitting a banking titan

.. He is seen internally as a contender for chief of staff should Priebus exit, though one senior official noted, “Nobody wants Reince’s job here. I can tell you that with certainty.”

.. Last month when two dozen manufacturing chief executivesvisited the White House, Trump singled out Cohn by noting his vast wealth.

“You all know Gary from Goldman,” Trump said. “Gary Cohn — and we’re really happy — just paid $200 million in tax in order to take this job, by the way.”

..Trump enjoys having the rich and powerful reporting to him
.. A competition over Trump’s trade and economic agenda is brewing between Cohn and Peter Navarro

.. Cohn shrugged off Navarro’s ideas as almost irrelevant, according to two officials. Trump stepped into the conversation and defended Navarro and his point of view.

.. Priebus has been frustrated with Cohn and Powell for what he sees as short-circuiting his process by communicating directly with the president

.. “The president wants W’s — he wants wins,” Kudlow said. “That’s key to understanding this bit of change in the whole outlook. He’s trying to get W’s and have Congress work with him, and he’s looking to lots of people to get them.”