Will China be the New Russia? The Future of American Geopolitics
[Prefatory Note: The text below is a slightly modified interview conducted by Daniel Falcone, and published in Counterpunch on July 9th. Even the passage of a few days has made it seem more likely that a new geopolitical confrontation could dominate the global peace and security landscape for years, with likely dire economic consequences coming on top of the dislocations arising from COVID-19 pandemic and heightened risks of war and regional tensions. One question is whether the differences in the global setting and main geopolitical actors sufficiently resemble the Cold War circumstances to make designating a U.S./China confrontation as a Second Cold War. As my responses below suggest, I have my doubt.]
[Daniel Falcone’s Introduction to the Interview: Should there be a Second Cold War an alleged US concern for human rights would indeed become another ongoing tool of propaganda. In this interview, International Relations scholar Richard Falk breaks down the grave dangers and prospects for a New Cold with China. Falk worries that tensions and rivalries both regionally and economically could result in a series of hot war conflicts set off by nuclear complacent countries that fail to recognize the catastrophic risks at stake.
In retracing the collapse of the Soviet Union and China’s entrance into the World Trade Organization, Falk analyses the origins of US resentment towards China’s remarkable market growth that is absent of liberal democratic structures. Aside from commenting on how ‘cold war’ with China, an economic rival, is different from 20th century Russian tension, which was largely militaristic and ideological, Falk suggests additional motivations for an escalation on the part of Trump and the possibly forthcoming bi-partisan consensus.]
Will China be the New Russia? The Future of American Geopolitics
Daniel Falcone: Do you anticipate the United States entering a new Cold War with China? What are the prospects for a new Cold War? Can you also discuss the fall of the Soviet Empire and the modern rise of China to better contextualize the present set of diplomatic tensions?
Richard Falk: I think there are grave dangers of either sliding into a new Cold War by unwitting interactions, especially with China, and possibly with Russia. More complex opposing alignments could also take shape, for instance, an alignment that features the U.S., Europe, and India on one side and China and Russia on the other. Such an encounter would likely be less ideological than the Cold War that broke out after World War II and also less preoccupied about the outbreak of an all-out nuclear war. The next cold war is likely to be more focused on economic rivalry, cyber dimensions of conflict and major regional wars involving Iran, the Korean Peninsula, India/Pakistan, or elsewhere. In this regard, what might start as a cold war has a greater prospect of producing major hot wars as there could be present less of a self-deterrent. In this altered global setting, there are distinctive risks arising from what I would call ‘nuclear complacency, underestimating the dangers and catastrophic results of nuclear war.
In the background of this look ahead is the extent to which China has spoiled the triumphalist narrative that was spun in the West after the collapse of the Soviet Union. One somewhat notorious version, associated with Francis Fukuyama ‘s claim, which seemed ludicrous when it was put forward in the early 1990s, is that after the Cold War the world had reached ‘the end of history.’ Western secular values had prevailed both with regard to state/society relations and in relation to the organization of the world economy. The future seemed, for some years, almost to vindicate this myopic interpretation, with a virtually universal endorsement of neoliberal globalization, which Fernando Henrique Cardoso, the previously left socialist leader of Brazil explained in the 1990s as ‘the only game in town.’
A cruder version of this clear vision of a victorious West was the assertions of the Tory leader in Britain, Margaret Thatcher, who aggressively shouted down the British opposition to her economic policies with the slogan ‘there is no alternative’ (to market driven economies), or simply TINA. This idea had been initially attributed to Herbert Spencer, notorious for suggesting in the 19th Century that history of society parallels human evolution in the sense of privileging ‘the survival of the fittest.’ Not surprisingly, given such an uncongenial atmosphere, progressive forces felt demoralized.
Left perspectives often adopted defeatist postures after the Soviet collapse, and were derided as having endorsed political oppression and backed economic failure. Perhaps worse for progressive prospects, was the awkward fact that the only surviving major socialist economy, post-Mao China after the ascent of Deng Xiaoping in 1978, seemed itself to be opting for joining the capitalist choir, seeking and gaining membership by in the World Trade Organization and rationalizing its active participation in the neoliberal world economy as ‘market socialism’ fooling almost no one, least of all capitalist investors and traders.
For many years, this seemed like a win/win reality. China’s economy expanded at a remarkable rate, but world trade increased and Western investors were pleased with their profits, associated with the low costs of skilled labor in China and the absence of strict environmental and safety standards. All was well as long as China stayed in its lane as ‘the factory for the world,’ but when it made the transition to a sophisticated high technology innovating economy it began to pose a new kind of geopolitical challenge to the primacy of the United States and the West, and murmurs began to be heard about stealing Western technology, unfair trade practices, and currency manipulations. In my view, although these issues were significant, they were capable of negotiated solutions, and were not the core concern. What began to bother the West was the degree to which China for all of its superficial adaptations to capitalist logic was dramatically outperforming its competitors in the West, seeming benefitting from the state management of economic activity, despite political authoritarianism, in a manner superior to what seemed possible in the developed societies of the West, especially with respect to savings, the investment of public funds, and even with regard to technological innovativeness relating to the post-industrial, digital age.
This extraordinary Chinese dynamic is brilliantly depicted for Asia as whole by the Indian economist, Deepak Nayyar, in The Asian Resurgence: Diversity in Development (2019). The book explains the overall post-colonial Asian challenge to Western ascendancy in which 14 Asian countries, led by China, produced the most remarkable record of economic growth and poverty alleviation in the past 50 years that the world has ever known. These countries achieved these remarkable results without the private sector trappings of liberal democracy, thus drawing into question the American claim that market-driven constitutionalism was the only modern arrangement of state/society relations that was both legitimate and materially successful.
With these considerations in mind, three rather distinct alternative futures for the U.S./China relationship deserve scrutiny if the objective is to avoid the onset of a lose/lose second cold war. On a preliminary basis it would seem helpful to take notice of a serious language trap that suggests misleadingly that because the words ‘cold war’ are convenient to designate a new central geopolitical confrontation, if it occurs, it would resemble in its essential features the Cold War that followed directly from the contested peace arrangements of World War II, and represented two major states that both conceived of international relations through the realist postwar prisms of hard power as complemented by adherence to rival ideologies that temporarily suspended their enmity toward each other in order to join forces to defeat fascism. There are many differences between the global settings then and now. First, there is only a rather shallow ideological difference among the leading political actors at this time, although those on the far right in the West are seeking a renewal of intense geopolitical conflict by portraying China as a Communist, socialist, even Maoist, and hence an ideological adversary of the supposedly freedom-loving West. In contrast, old style Cold War liberals are thinking more along traditional lines of geopolitical competition among principal states promoting national interests as measured by growth, military capabilities, wealth, status, and influence, with ideological differences and human rights invoked, but put situated far in the background.
With these thoughts in mind it becomes reasonable to depict three world futures that portray relations between China and the West. The first, and most evident one, arises from the kind of provocative Trump diplomacy that combines blaming the COVID pandemic on Chinese malfeasance with intensifying the divergencies relating to economic policies and in relation to the island disputes in the South China Sea. Such a conflict-generating diplomacy is best understood as a diversionary tactic to obscure the multiple and shocking failures by the Trump presidency to provide unifying leadership or science-based guidance during the unfolding of the health disaster that continues its lethal sweep across the country with undiminished fury, and should be exposed as such. If China takes the Trump bait, the world will be plunged into a new ferocious geopolitical rivalry that will divert resources and energies from an agenda or urgent global-scale challenges.
A variation on this theme is connected with the possibility that Trump thinks he faces a landslide defeat in the November election, and esscalates hostile diplomacy to stage a confrontation with China, possibly accompanied by declaring a national emergency, or by contriving Gulf of Tonkin style false incidents as a pretext for launching some sort of attack on China that is the start of a hot war, which if saner minds prevail, would be contained, and toned down to mere Cold War proportions, and likely becoming a multi-dimensional rivalry that comes to dominate international relations.
The second more subtle drift into a Cold War with China would arise from a deep state consensus reinforcing a bipartisan consensus in Congress, and further encouraged by private sector war industry pressures. The likely objective would be to challenge China militarily in the South China Sea or in the course of some regional confrontation, possibly arising from tensions on the Korean Peninsula, along the Indian border, or in the Indo-Pakistani context. It would represent a more common structural militarist response patterns to growing evidence of relative Western decline in the face of a continuing Asian rise.
The third future is even more abstract and structural, and has been influentially labeled ‘Thucydides Trap’ in a book by Graham Allison [Destined for War: Can America and China escape the Thucydides’s Trap? (2017)], who accepts the analysis of the classical Greek historian on the basis of case studies over the centuries finds that when an ascendant Great Power fears the loss of its primacy to a Rising Power, it frequently initiates war while believing it still retains a military edge, which it will not retain for long. Note that such an assessment presumes actual warfare, and should not be perceived as a sequel to the U.S./Soviet Cold War, which came close to war in several situations of bipolar, but managed to restore order in a series of tense crises without engaging in direct combat.
There is a further complication with an analysis that extrapolates from the Cold War. Unlike the Soviet Union, China’s rise and challenge is far less associated with military capabilities and threats than it is with a remarkable surge of economic growth and soft power expansionism by pursuing win/win approaches that combine infrastructure aid to foreign societies with the growth of influence. In this regard, China has not weakened its domestic society by excessive investment in a militarist geopolitics, which depends on maintaining an expensive and vast global military presence that produced a several failed interventions that cast doubts on the United States’ capacity to uphold global security. This loss of credibility with respect to global security, despite its military dominance can be traced back to the Vietnam War in which overwhelming combat superiority on the battlefield nevertheless led to a political defeat.
The United States has repeated that fundamental failure first fully exposed in Vietnam in several other military misadventures. This inability to adjust to the realities of the post-colonial era in which nationalism mobilized on behalf of self-determination often neutralizes and eventually outlasts an intervening external power despite having grossly inferior weaponry has still not been overcome by the United States as it continues to act as if its military prowess shapes contemporary history. There is a second Thucydides trap that Allison doesn’t mention, which is that Athens lost its ascendancy from internal moral and political decay more than from the challenge posed by rising Sparta, succumbing to demagogues who led Athens into imprudent military adventures that weakened its overall capabilities, and especially its political self-confidence. Such a downhill path has been traveled by the United States at least since the 9/11 attacks in 2001 in which wars and contested long occupations of hostile societies has been expensive and contributed to alienation, extremism, and unrest within the United States.
Daniel Falcone: Can you draw on specific historical comparisons to the Soviet Union and China in terms of what is at stake geopolitically?
Richard Falk: There are several important comparisons. To begin with, the Soviet Union emerged from a devastating war as a victorious military power, and soon acquired nuclear weapons, posing a direct threat, ideologically and militarily to the European heartland of the Western alliance. The Cold War unfolded out of the tensions associated with the mutual disappointments of the peace diplomacy, especially as it divided Europe, including the city of Berlin.
The other flashpoint that provoked extremely destructive and dangerous wars in Korea and Vietnam, and recurrent crises in Germany, was the problems arising from unstable compromises between the victors in the war taking the form of countries divided without the consent and against the will of their national populations, and in disregard of the right of self-determination. In the present historical situation, the only leftover divided country is Korea, which after a serious and devastating war, 1950-52, ended as it began with the division remaining along with crises, tensions, threats, and periodic diplomatic efforts to achieve normalization leading to some form of reunification. It should be noted that although China’s geopolitical profile is overwhelmingly economistic as compared to the U.S. militarist profile, China become very sensitive about threats and disputes along its borders, and has had fighting wars with both India and Vietnam, as well as a defensive engagement in defense of North Korea.
Tensions rising to confrontation levels with China would probably either derive from disputes within China’s sphere of South Asian influence with respect to Taiwan, Hong Kong, island disputes or in some way related to China’s economic rise to a position of primacy, which contrasts with the grossly inferior economic performance of the Soviet Union if compared to the U.S. and the other major world economies, including Germany and Japan. The Soviet Union was never an economic rival or mounted a challenge in the manner of China.
The Cold War also coincided with the decolonizing process in Asia and Africa, which put the West and the Soviet bloc on opposite sides in a variety of struggles. In one respect this provided a safety valve that shifted bipolar confrontations to peripheral countries while trying to keep nuclear peace and stability at the center of the world system, which both sides assumed to be Europe, as well as their relations with one another. If a prolonged geopolitical confrontation emerges with China, Europe will not likely be an important site of struggle, and Europe even might sensibly opt to be non-aligned. Asia, including the Middle East, will become the main geopolitical battlegrounds, and Africa will offer a peripheral zone of contention where a Cold War II rivalry might assume its most direct expression as escalation risks would seem lower than in the various Asian theaters of encounter.
Unquestionably, the biggest difference is between the nature of the two challengers to Western systemic hegemony. The Soviet Union was a traditional geopolitical actor relying for expanding influence on its material capabilities and ideological penetration, while China focuses its energies and resources on soft power economic growth at home that is sustained and managed by the state in a manner that attracted massive foreign investment and domestic reinvestment based on a high rate of savings, a skilled labor force, and benefitting from highly favorable trade balances. China’s expansionist energies relied on win/win forms of economic and infrastructure assistance to countries in need with minimal interference with their political independence. The Soviet Union never undertook anything remotely comparable to China’s Road and Belt extraordinarily massive infrastructure initiative, again stressing huge win/win gains for a large number of countries, including in Africa. Aside from the special case of Cuba, the Soviet Union provided only military support to its allies in the so-called ‘Soviet bloc,’ and in East Europe intervened militarily to avoid ideological deviation.
It remains to be seen whether now that China is being challenged geopolitically by the United States it will begin to adopt a hard power mode, and the resulting confrontation between the two countries will come to resemble the Cold War. It is likely that China will emerge from the COVID pandemic with a reputation for greater efficiency in controlling the spread of the disease, reviving its economy, and understanding the functional benefits of global cooperation than the Trumpist West. At the same time, the Chinese image has been badly tarnished by damaging disclosures documenting the repression of the 10 million Uighur minority in Xinjiang Province and by forcible extensions of direct control over Hong Kong.
Daniel Falcone: The Cold War featured widespread propaganda in all facets of American cultural and political life. How could the United States attempt to sell the concept of an ideological confrontation with China in these times? The Republicans and Democrats are both constructing similar policy proposals it seems.
Richard Falk: I believe there are two approaches to confrontation with China that might be followed in the coming months, depending on which leadership controls American foreign policy after the November elections. Neither is desirable in my opinion. There is the approach of provocation adopted by Trump, which blames China for the pandemic and imposes various sanctions designed to roll back their economic and technological advances coupled with Trump’s normal transactional emphasis on securing a more favorable trade deal for the U.S. tied to a promise of warmer diplomatic relation.
The second approach is more closely associated with a reenactment of the Cold War bipartisan consensus that formed after World War II, and continues to animate the national security establishment in Washington. It involves a new version of containment as focused on the South China Seas island disputes, sometimes more loosely described as ‘boxing China in’ with India playing the role that Europe played in the earlier Cold War, along with an emphasis on China’s human rights abuses to achieve liberal backing, or at least acquiescence.
This approach is more likely to be pursued by a Biden presidency reasserting U.S. global leadership, with a Carteresque revival of ideological emphasis on Western liberalism as a superior mode of governance and global leadership due to its record on human rights and democracy, proclaiming its dedication to ‘a new free world.’ It is this approach that is more usefully and accurately regarded as a successor to the first Cold War. This softer version of confrontation with China would not challenge the structural features of America’s geopolitical posture adopted during the Cold War based on militarism at home and globally, capitalism, Atlanticism, and ‘special relationships’ with Israel and, somewhat less stridently, with Saudi Arabia, India, Egypt.
At the same time, there are some strong disincentives for so engaging China in a post-pandemic setting when policy priorities should be directed at restoring the economy and addressing climate change/biodiversity, which was almost forgotten about during the health crisis. The wisest course for future American foreign policy is providing constructive global leadership with an emphasis on inter-governmental cooperation for the human interest, a receptivity to compromise and conflict resolution in dealing with economic and political disputes, a radical defunding of the military, and strong commitments to restoring the spirit and substance of the New Deal with respect to social protection and national infrastructure.
Daniel Falcone: Are there any specific human rights issues and regions that would present immediate concerns and be jeopardized in your estimation within a new Cold War framework?
Richard Falk: Neither China nor the United States are currently positioned to promote human rights in other parts of the world with any credibility. The U.S. has lost credibility due to its handling of asylum-seekers on its borders and the maintenance of sanctions against such countries as Iran and Venezuela despite widespread humanitarian appeals for temporary suspension. In addition, the worldwide surge of support for Black Lives Matter after the Floyd police murder has called attention to the ugly persistence of systemic racism in gun-toting America. With these and other concerns in mind, it is hypocritical for the U.S. to be lecturing others, complaining about human rights abuses, and imposing sanctions allegedly as punitive responses to human rights failures.
China has never treated human rights as an element of its foreign policy, and with its own failures to adhere to international standards at home it is unlikely to engage the West on these terms. At the same time, there are at least two positive sides to China’s treatment of human and humanitarian issues that are rarely acknowledges in the West. First, China has lifted tens of millions of its own people out of extreme poverty (while the U.S. has widened disparities between rich and poor, and oriented growth policies over the course of the last half century to benefit the super-rich causing dysfunctional forms of inequality and acute alienation and rage on the part of working class). The Chinese achievement could easily be interpreted as a great contribution to the realization of the economic and social rights and to some extent should balance its disappointing record with regard to civil and political rights.
Secondly, during the COVID pandemic China has displayed important contributions to human solidarity while the United States has retreated to an ‘America First’ statist outlook that is combined with very poor performance with regard to both preventive and treatment aspects of responding to the virus. China has added funding to the WHO, send doctors and supplies to many countries, and most impressive of all has pledged to place any formulas it develops for effective vaccines in the public domain, placing this vital intellectual property on the web accessible to public and private sector developers. China deserves to receive positive recognition for such acts of what is sometimes described as ‘medical solidarity,’ while the United States deserves to be shamed for its blending of capitalist greed and nationalist selfishness.
Should there be a Second Cold War, human rights would become even more than, at present, a tool of cynical propaganda, especially if the bipartisan consensus regains the upper hand in U.S. policymaking. As with the First Cold War, human rights considerations would be brought to bear on countries deemed hostile to U.S. geopolitics and ignored with respect to friends and allies. At present, such a dichotomy is evident by way of an emphasis on Turkish human rights failures while ignoring the far worse failures in Egypt, Saudi Arabia, and Israel. Because the Second Cold War would be more explicitly geopolitical rather than ideological, I would expect less emphasis on ‘free world’ definitions of the core issues giving rise to the conflict.
Daniel Falcone: Although it’s a long-standing concern of strategists and planners, how do you see or anticipate China becoming an issue in the upcoming presidential election?
Richard Falk: It seems likely that Trump will campaign on a new strategic threat to the United States emanating from China, primarily aimed at its unacceptable economic manipulations to deprive the U.S, of trading benefits and jobs as well as its charging China with responsibility for American deaths due to the pandemic resulting from its refusal to release information about the virus immediately after it struck Wuhan and by way of conspiring with the WHO to conceal information about the international dangers of the COVID-19 disease. As in 2016 with its inflammatory message about immigrants, it can be anticipated that Trump will use the same techniques to cast China as an evil challenge to American greatness that only he has recognized and possesses the will and ability to crush.
I would expect that the Democratic Party election strategy would not take fundamental issue with the Trump approach, although its emphasis might seem quite different, attacking Trump for using China as a means to distract Americans from his gross failures of international and domestic leadership. A Biden campaign would also condemn China with regard to curtailing Hong Kong democracy and autonomy, as well as its abusive policies toward the maltreated Uighur minority. Biden might also agree that Chinese behavior has been unacceptable with respect to trade practices, stealing industrial secrets, including advocating militarization and confrontation in the South China Seas.
Where Biden and the Democrats would differ from Trump quite dramatically is with respect to Russia. Biden Democrats would likely make Russia enemy #1, sharply criticizing Trump for being ‘Putin’s poodle,’ and arguing that Russian expansionism and its alleged responsibility for killing Americans in Afghanistan is a more frontal threat to American interests in the Middle East and Europe than are the China challenges. Depending on the rhetoric and supporting policies being advocated there is a risk that Biden’s approach would lead to geopolitical fireworks, but probably not with China, and with less preoccupation with Europe than the First Cold War that ended with the fall of the Berlin Wall in 1989.
Daniel Falcone: How does our ongoing and continual: medical, racial, economic and environmental pandemics help in exploiting Cold War narratives and approaches for heads of state around the world?
Richard Falk: I believe it is not yet clear whether these competing narratives will outlive the health crisis when pressures to revive the economic aspects of the ‘old normal’ will be intense. It is possible that if Trump remaining in control of the U.S. Government, there would be an opportunity for China or possibly a coalition of countries to exercise global leadership by seeking to promote a global cooperative approach to health, while also seeking common ground and shared action on climate change, global migration, food security, and extreme poverty.
If Biden becomes the U.S, president and reasserts U.S. leadership it will likely strike a balance between pushing back against Russian and Chinese challenges and learning from the pandemic to seek global cooperative solutions to urgent problems confronting humanity. This renewal of liberal internationalism would likely be signaled on Day One by rejoining the Paris Climate Change Agreement and soon thereafter restoring American participation and support for the Iran Nuclear Agreement, supplemented by such internationalizing initiatives as returning to active membership in and robust funding for the WHO and support for the UN.
In conclusion, the buildup of anti-Chinese sentiments is establishing this dual foundation for a Second Cold War. Not surprisingly, the Editorial Board of the NY Times calls on Trump to use sanctions against China in response to reports of its mistreatment of the Uighur minority and its Hong Kong moves. Such advocacy is set forth without a mention of the hypocrisy of Trump being an international advocate of human rights given his record of support for autocratic denials at home and abroad, not to mention border politics and cruelty toward those millions in the U.S. without proper residence credentials. This kind of belligerent international liberalism, if not moderated, would recall the ideological joustings that made the First Cold War such a drain on resources and destroyed hopes for a rule-governed geopolitics, anchored in respect for the UN Charter and embodying commitments to promote a more peaceful, just, and ecologically responsible world.
Tags: alignments, China, COVID-19, geopolitics, liberal internationalism, post-pandemic globalism, Russia, the Chinese challenge, Thucydides Trap, U.S.
Global Justice in the 21st Century 
Will China Run the World? Should it?
14 Dec[Prefatory Note: Interview Responses to Questions of Javad Heiran-Nia on world order in the time of COVID-19, with emphasis on China & United States, especially as reflected in the restructuring of the world economy. The underlying issue is whether the Chinese or U.S. approach to global policy and world order will gain the upper hand, and at what costs to humanity. The interview will be published in a forthcoming issue of Age of Reflection, a monthly magazine. (http://www.asreandisheh.com/). This post adds some observations at the end that do not appear in the interview.]
Yes, I think it has become extremely relevant to talk about the comparative approaches of China and the U.S. to problem-solving and political order, both their differences and similarities. There exists a preliminary question relating to the seemingly unusual character of American political leadership during the past four years of the Trump presidency, and the probability that it is about to change in style and substance shortly after Joe Biden is inaugurated as the next president. Trump is the first American leader to reject the authority of science and expert guidance in a period of national crisis, greatly aggravating the harm caused by the Corona-19 virus through the advocacy of behavior that contributes to the spread of the disease rather than to its containment. It is also notable that other illiberal leaders of important states have also acted in extremely irresponsible ways during the crisis, including Bolsonaro, the leader of Brazil, and to some extent, Boris Johnson, the British prime minister, among others.
The comparison between China and the United States, current leadership aside, suggests some important differences. The most important difference relates to the role of the central government, and in China’s case, the state. China has more of a unitary system in which policy is set in Beijing for the entire country. In the United States, the reality of federalism means that all 50 internal states enjoy a measure of autonomy, which results in diverse responses to the COVID challenge, some following the approach taken by Trump while others following health guidelines and produce overall better results.
In general, it is possible to suggest that the role of the state is more effectively and efficiently deployed in China in response to COVID, although exhibiting a disturbing disregard for the freedom of citizens and their human rights, especially with regard to political dissent and peaceful opposition. The extraordinary success of the Chinese economy over the course of the past 50 years, confirms the importance of providing centralized guidance in promoting technological innovations and in managing the allocations of capital investment in rapid and sustainable patterns of development.
The U.S. has long suffered from the effects of massive over-investment in military capabilities, which has led to a series of costly foreign policy failures going back to Vietnam, compounded by a refusal to adapt to a global setting in which the politics of national resistance prevails over the superior weaponry of the United States, producing endless wars with unfavorable political outcomes for the intervening. So far China has avoided this trap, expanding through reliance on a variety of soft power instruments, but whether it can maintain this posture in the face of the U.S. current disposition toward confrontation and the initiation of a second cold war is not clear.
The U.S. also suffers from ideological inhibitions that are leftovers from the Cold War rivalry with the Soviet Union. Any reliance on government to perform roles relating to health, education, and social protection are labeled as ‘socialism,’ which is treated as such an evil mode of governing as to foreclose serious discussion. The result has been disinvestment in the social justice agenda, which is compounded in bad effects by the continuing over-investment in the militarist agenda.
This is a crucial question. There is no doubt that neoliberal globalization led to a surge in international trade and investment, fueling sustained economic growth, but it also led to great inequality of benefits from economic development, sharpening class tensions, and in the American case caused acute alienation among workers and rural communities. The Trump phenomenon arose as an ultra-nationalist impassioned backlash to these negative domestic impacts of liberalism. Trump’s insistent call for ‘America First’ coupled with a rejection of all phases of globalism resonated with many Americans. Such a strident outlook struck heavy blows against global cooperation and hospitality to asylum-seekers and refugee, and even immigrants, at the very time these more cosmopolitan behavioral patterns were most needed to address such serious challenges as climate change and migration flows that could not be handled satisfactorily by states acting alone. In some respects, this retreat behind borders worked politically and economically for Trump until the unanticipated COVID pandemic came along. Trump missed no opportunity to boast about the stock market reaching historic highs, low unemployment figures, and somewhat rising wages for workers. The down side of Trump’s approach led to repudiations of the authority of international economic institutions, produced accelerating inequality, and was accompanied by ugly reactions against immigrants and people of color who were denied the full benefits of citizenship and were treated as hostile threats to nationalist identities of supremacy claimed by discontented white Americans who felt understood, energized, and supported by the Trump leadership.
In contrast, China was able to benefit from market forces while simultaneously overcoming the impoverished condition of more than 300,000,000 of its citizens and rapidly building an efficient modern market society on the largest national scale ever known. China’s state-guided public investment policies have seemed very well coordinated to develop an economy that is not only remarkably productive in industrial era manufacturing, but has started to dominate the technological frontiers that have military and reputational implications as threatening to the West as was post-1945 decolonization. China managed to combine taking advantage of liberalism while avoiding most severe forms of domestic alienation, and found win/win ways to help with infrastructure development of less developed countries without seriously interfering with their sovereign rights or political independence, thereby raising its status internationally. From a human rights perspective, China built an impressive record with respect to economic and social rights, while limiting political and civil rights rather severely, and imposing an unacceptably discriminatory regime on the large minority Uighur population in Xinjiang province.
The Biden approach to China reflects a bipartisan, and largely mistaken, view that China has taken unfair advantage of world economy through improper subsidies of exports and by way of strict regulation of imports and foreign investment in China, including with respect to technology. I am not equipped to assess the reasonableness of these grievances, nor of the Chinese concerns with unfair responses to their activities in global markets. There is a danger arising from this attempt to control Chinese economic behavior that it will lead China to retaliate and give rise to the sort of protectionism that caused the Great Depression of the 1930s, characterized as a ‘beggar thy neighbor’ ethos in foreign economic policy. There is also present an impression that the United States is neglecting its own economic shortcomings by shifting blame to China rather than making reforms such as a more prudent allocation of resources and a more effective and equitable public allocation of public sector revenues to promote research and development in non-military projects. The U.S. political taboo preventing even discussion of the shrinking the military budget and the worldwide network of overseas bases is more explanatory of American decline than are accusations of improper behavior directed at China. The U.S.’s military budget is larger than the combined military expenditures of the next ten countries, and yet the U.S. has never felt more insecure throughout its entire history. It is these realities that are at the root of the relative world decline in the economic sphere, and the overall crisis confidence, currently besetting the United States.
This question points to another major deficiency in the global turn toward economic nationalism and away from economic multinationalism during the Trump presidency. China has taken intelligent advantage of the U.S. withdrawal from the Trans-Pacific Partnership, which incidentally excluded China reflecting Obama’s interest in containing China’s regional outreach. China has helped fill the cooperation vacuum by adopting a multilateral framework designed to facilitate Asian growth of trade and investment. Trump’s preference for ‘transactional’ bilateral deals over negotiated cooperative frameworks seems ‘ is very shortsighted, and is almost certain to be rejected as an approach during the Biden presidency. But it is probably too late to reverse these regional developments by U.S. inclusion unless Biden’s leadership moves away from confrontation and toward accommodation, which seems unlikely. This China-led 10 country Regional Comprehensive Economic Partnership includes Japan, South Korea, Singapore, Vietnam, Cambodia, Philippines, Thailand, Australia, New Zealand, and Brunei is off to an impressive start. This arrangement has been under negotiation since 2012, and just now formally endorsed by member governments. India had been expected to become a member, withdrawing recently because the expected lowering of tariffs was thought to harm Indian producers. As it is this Asian bloc comprises 30% of the world’s population, and just under 30% of the world’s GDP.
I anticipate a double movement with regard to the world economy: one movement would be toward restoring the spirit and substance of market driven transnational agreements and frameworks designed to encourage trade and investment within a rule governed framework that is mutually beneficial and inclusive; the second movement is more ideologically delimited, seeking frameworks that are ideologically and geopolitically more closely aligned, excluding China, and possibly Russia. This post-Cold War restructuring was somewhat anticipated by the Obama ‘Asia reset’ that deliberately excluded China from the TPP, and Biden is likely to go further in Asia, and possibly joining with India in adopting a new containment approach to foreign policy and world order. It is difficult at this stage to know how China will react if it is faced with geopolitical encirclement and a more exclusionary economic atmosphere. It is possible that China, which is more pragmatic and opportunistic than the West, will do its best to encourage a less conflictual new phase of economic globalization, which would spread benefits worldwide, is also responsibly concerned with the global public good, which translates into greater support for clean energy, environmental protection, human rights, denuclearizing initiatives, and a more equitable distribution of benefits of economic growth.
Biden’s efforts to find a consensus on foreign economic policy will definitely pose a crucial test for his presidency. If he seeks to act on the basis of domestic unity, policymaking will likely be paralyzed, especially if Republicans remain able to put roadblocks in the path of Democratic proposed initiatives. If Biden decides to ignore the priorities of this lingering large Trump support he will be confronted by resentment and disruption. It is a dilemma no recent American president has faced. Whether the dilemma can be overcome also depends on whether Trumpist Republicans retain control of the U.S. Senate, and that seems to rest on the Georgia reruns of the two senatorial elections, which will be decided in early January. Unless the Democrats win both races, the Republicans will control the Senate, and as they did with Obama’s second term, be in a position to obstruct and block most legislative initiatives that are seen as antagonistic to the Trump approach. Biden’s pledge to be president for all Americans sounds good, but whether it will be a successful governing style remains in doubt. My understanding is that most Trumpists want power not compromise or responsible government. In this regard, restoring civility to the American political scene will be welcomed even by some Trump supporters, but to uphold his policy goals it may well be necessary to confront Republicans and mobilize the support of the citizenry. With the recent election revealing the depth of polarization, further revealed by the Trump refusal to accept the outcome as certified by the long reliable voting schemes operative in the 50 states, including those presided over by Republican officials, there are many signs of domestic trouble ahead for Biden whether he gives way on his policy agenda or tries to have it fulfilled. Biden may have more success in reviving the bilateral consensus on foreign policy that existed during the Cold War, and would be now focus on restoring European alliance relations and challenging China regionally in South and East Asia, and globally with regard to a U.S. oriented revision of rule-governed globalization. Again, much depends on the degree to which the Biden leadership with continues to address global security through a militarist optic. Early indications suggest that the demilitarization of the American political and moral imagination will not be forthcoming in the near future whoever is president.
Again, I think the way to consider such a departure from global scale, inclusive liberalism is to reevaluate the operation of the world economy during and after the ending of the Cold War in the early 1990s. On the basis of my prior responses is a return to a modified Cold War orientation toward foreign economic policy. Unlike the Soviet Union, China’s participation in the world economy is indispensable for world stability and sustainable development, which creates a realization of mutual benefits. There is no realistic prospect of resurrecting the ‘Washington consensus’ shaped by the Bretton Woods institutions as projecting American values onto the global stage as the more legitimate future than that projected by Moscow. What might be feasible is some reform within the neoliberal framework that gained certain concessions from China but more or less retained the inclusive structures of neoliberal globalization that have controlled the world economy since the Soviet collapse in 1992. Thinking optimistically, we might even witness an upgrading the quality of Chinese participation. If reform fails and geopolitical confrontation occurs, then a lose/lose future for the entire world looms as the likely outcome, which could work more to the disadvantage of the West than to China. It needs to realized that China has been adapting its public investment priorities in light of expanding the economic performance of its huge domestic market, including satisfying rising consumer demand, as well continuing with the largest international/transnational development in world history, The Road and Belt Initiative or One Belt, One Road (OBOR), a new Silk Road adapted to the circumstances of the present. As Deepak Nayyar has shown in his breakthrough book, Asian Resurgence (2019), China is no longer dependent on Silicon Valley and Europe for technological progress, but the West, including the United States, may increasingly look to China for the latest technological innovations. Undoubtedly, part of the rising tension with China reflects the threatening reality that the country has graduated from its non-threatening role as ‘the factory of the world’ to becoming dominant on some of the most dynamic technological frontiers, which is a symbolic as well as a substantive blow to America’s reputation and leadership credentials, and possibly even to its dominance with respect to innovations in military technology.
8. Given that liberalism is not in America’s best interests internationally, and theorists such as Prof. John Mearsheimer warn the US government against pursuing liberalism globally, what do you think will replace the current liberal order?
John Mearsheimer has long intelligently stressed the geopolitical dimensions of world order, which inevitably emphasizes patterns of conflict between major actors. As an extreme realist he regards ‘liberalism’ as naïve, and a sign of weakness, which invites cynical adversaries to take advantage economically and diplomatically. Mearsheimer is convinced that history is shaped by those political actors that prevail militarily, and as adjusted for present realities, the first priority of foreign policy should not be cooperation with rivals but their deterrence. He has gone so far as to credit nuclear weapons with the avoidance of World War III during the Cold War.
A complementary view to that of Mearsheimer has been influentially formulated by Graham Allison in his book Destined for War: Can America and China Escape the ‘Thucydides’s Trap’ (2017), which puts forward the thesis that high risks of war occur when the hegemonic hierarchy is challenged by an ascending actor in international relations. The present ascendant political actor that perceived a rising challenge from below is likely to provoke war rather than give way, which according to Allison is what has almost happened throughout world history.
Whether such abstractions should be given much weight considering several factors:
–the globalizing adaptations in the post-COVID world, giving increased role to WHO, and UN
Generally, as offset by persisting ultra-nationalist governance trends, despite defeat of Trump;
–a growing anxiety about global warming producing climate change with many harmful effects, including dangerous erosions of biodiversity;
–the Chinese challenge to American global primacy arising in a manner unlike earlier geopolitical confrontations, most notable with respect to economic performance, technological ascendancy, and soft power expansionism rather than by way of military challenge and territorial ambitions;
–U.S. relative decline globally, reflecting a continuing over-investment in military capabilities, a militarized permanent bureaucracy entrapped in an outmoded political imagination with a disposition that exaggerates security threats and under-invests in domestic infrastructure and social protection of its citizenry;
–a resulting intensification of uncertainty about the future of world order, some recovery of functional multilateralism under Biden leadership accompanied by increased reliance on coercive geopolitics involving relying on military ‘solutions’ for political problems.
Tags: Asian Economic Order, China, United States, world order