Trump names anti-China economist as trade council chief

While Donald Trump seems to be friendly with Putin and anxious to pursue better relations with Russia, with respect to China his position is one of opposition. This trend is confirmed in his naming of his trade council chief.

 

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Trump has named Peter Navarro, an anti-China economist to the important post. Navarro has accused China of wrecking the U.S. economy. He has even produced a long documentary film on China.

Trump has described Navarro as a visionary. Navarro has also suggested that the U.S. could become more engaged with Taiwan. Trump has already spoken with the Taiwanese president, angering China. The U.S. has long pursued a 'one China' policy — a position supported by China. Trump said recently on Fox News Sunday that the U.S. does not necessarily need to stick to the present U.S. view that Taiwan is part of one China. He said this after negative reactions to his speaking with the Taiwanese president.

Navarro's opposition to China is regarded as extreme by many. Navarro regards China as waging an economic war against the U.S. However, other less developed countries also take advantage of their cheaper labor power and lower safety and environmental standards to operate more cheaply than U.S. companies. In many cases it is U.S.-based global companies who have decided to shift jobs to such countries. While Trump may try to improve trade and other relations with Russia, many fear that the appointment of Navarro could destabilize trade and political relations with China.

In a recent statement about Navarro, Trump's transitional team said that Navarro would "develop trade policies that shrink our trade deficit, expand our growth, and help stop the exodus of jobs from our shores". One wonders what benefits there would be for the trading partner in such deals. The present trend of globalization is towards satisfying the interests of powerful international corporations who are concerned with maximizing their profits globally rather than focusing on the situation in a particular country such as the U.S.A. Trump may find himself up against powerful opponents should he try to implement a policy that puts the interests of the U.S. first. His attempts to do so could actually have negative effects on the U.S. economy. Trump also campaigned on fostering industries such as coal production which are waning and attempts to revive them will require subsidies and at the same time do considerable environmental damage. Consumers may not be happy when the cost of formerly cheap products rises considerably.

In his 2012 documentary Navarro claims that China is responsible for the loss of 57,000 U.S. factories and the loss of 25 million jobs. While Navarro may be exaggerating it is no doubt true that many factories closed down because goods were produced more competitively in China and also jobs were lost. However, many U.S. companies were complicit in the process through investments in China. Not surprisingly, few economists agree with Navarro. Most support globalization and the interests of global corporations. Marcus Noland of the Peterson Institute for International Economics described a tax and trade paper authored by Navarro with Wilbur Ross, named as Trump's commerce secretary as "the type of magical thinking best reserved for fictional realities". He said the economic analysis was seriously flawed.

During his campaign, Trump railed against the bad trade deals that the U.S. had made in the past. He threatened to impose tariffs not just on goods from China but Mexico as well. China's foreign minister, Wang YI, warned that with Trump as president ties with the U.S. could face new complications and that a stable relationship required each side respecting the other's core interests.

Perhaps, Trump is attempting to drive a wedge between Russia and China in order to ensure they do not join together to combat the power of the United States on the world stage.