Several decades ago speculation began about a new cold war, this one between America and China, with the newly emerging state capitalism of China confronting the then only remaining superpower, the United States. Those of us in the west were reassured by history, or at least the recent history we were most familiar with, where western ideas, economic organization and ideology had always triumphed, most recently against the “evil empire” of the Soviet Union. It seemed likely, or maybe even certain, this would also happen with communist China where, we were told, the dynamism and creativity needed for a truly successful society would ultimately come crashing up against the stultifying rigidity and need for control of the centralized communist state. The brutal crushing of student activism in Tiananmen Square a decade earlier seemed proof the Chinese model could never compete successfully, let alone endure, against the dynamism of western democracies and capitalism with their at times chaotic free flow and exchange of ideas. China’s domination of much of Asia for centuries before the emergence of the western European empires was nothing but a footnote, or so we thought. And to be completely honest, this was supported by the persistent racism directed at the Chinese by westerners over the preceding two centuries.
Future historians will spend their careers trying to understand what happened next. For reasons beyond the understanding of most of us, Americans turned against the model that created and maintained their prosperity and dominance, and that they mostly built for just that purpose. Instead of supporting and celebrating that model, many Americans came to feel put upon by it as they bought into the elitist narrative of American decline as exemplified by the hollowed out communities that had been the centre of American industry. I say “elitist” because it was a narrative favoured by wealthy vested interests in America as it enabled them to resist changes that would have affected their bottom lines. And what better person to personify this than Donald Trump? In not one, but two, separate elections they chose him and his ideology, if you can call it that, that promised to undo the very foundations of American greatness and with it the western world order. His 2016 election could be viewed as an aberration given the relative numbers with the popular vote, but his 2024 victory was an unmistakable statement that a majority American voters supported him and what he represented, whatever that might be.
In only nine months he has led an assault on almost every pillar of American greatness. Perhaps first amongst these is his drive to destroy the international trading system that has developed since the Second World War. With no distinction between friend and foe, he has attacked trading partners using tariffs as his cudgel. This shouldn’t have been a surprise as he has long publicly held the view that America was being “ripped off” by its trading partners and that tariffs were the remedy. Never the less, the speed and aggression employed caught almost everyone off guard.
His approach to negotiations with other nations reflects a view that may have been effective in New York real estate but that, in international affairs, guarantees fallout that will last generations. Put simply, if a negotiation is a “one of”, where the parties have no continuing relationship, it is possible to aim for a settlement where one party demonstrably wins and the other loses. And, in fact, it is even possible to crow about your success afterwards without damaging long term relationships and your own interests. I say “possible” because even in such a straightforward and transactional negotiation, nothing occurs in a vacum and, if nothing else, you emerge with your reputation sullied, although a sullied reputation is clearly not something Donald Trump cares about. But when you are negotiating with nations with whom you will have an enduring relationship, it is an entirely different matter. And that’s what’s happening now.
And it’s not just trading relationships that are being affected as the threat of tariffs is mobilized to interfere in the internal affairs of other nations. With Brazil, Trump is using tariffs to attempt to end the prosecution of his ally and former Brazilian President, Jair Bolsonaro, who has been charged with attempting to remain in power after losing an election by inciting a coup (sound familiar?). With Vietnam, the threat of tariffs was used to force the Vietnamese to accept and pay for, a golf club that benefits the Trump family. With Canada, the threat to end any negotiations on the tariffs was used to force it to abandon its digital services tax. With South Africa, tariffs are being used to try to force the government to repeal laws that might transfer agricultural lands from white South Africans to black South Africans. And, perhaps most damaging of all, his attack on India for importing Russian oil almost certainly guarantees a fundamental realignment of great powers that will not benefit the west.
Although this approach might lead to some short term “wins” for America, it will fail spectacularly in the long term as the barely dormant view of the “ugly American” re-emerges. America’s status as a superpower is significantly strengthened by its ability to rally the advanced western and Asian democracies behind it as force multipliers. The negative views fostered by the trade shakedowns will profoundly undermine that. Even with Canada, America’s closest neighbour and ally, the fracture will poison future relations for generations. Of course Canada will continue to help America when it experiences disasters but, when the day comes America needs allied troops beside it in places like Afghanistan where Canadians fought and died beside Americans, things will be different.
There’s something else going on under the guise of trade negotiations that everyone who cares about economic freedom and free enterprise should be concerned about. Of late, Trump has been announcing trade deals with private companies where the government takes significant ownership stakes in the companies in return for permitting them to conduct business both in the United States and with the rest of the world. In other words “pay to play”. This is the antithesis of the American free enterprise that drove its economy for well over two centuries. It’s the kind of state control evident in countries with authoritarian regimes that believe government and central planning is always the best way to organize an economy. This, despite the experience of the twentieth century, where time and time again, those economies failed to compete with the capitalist and democratic west and Asians. China may be an exception in this regard because of it’s long and very different history from the west, but do Americans really want to trade their freedom for the type of state control effectively practiced by the People’s Republic of China?
And it’s not just trade policy that’s undermining America’s status in the world. Terminating it’s premier foreign aid program, USAID, not only is having devasting effects on some of the most vulnerable and impoverished people on earth, it’s showing a callousness that completely undermines any claim to moral authority by America. Of course, it’s pretty obvious Donald Trump doesn’t give a fig about moral authority, apparently not understanding how it strengthened America in its past battles for the hearts and minds of people around the world.
America’s greatness was not just a result of it’s wealth and power; nor its democratic example; nor the moral clarity it often brought to international relations. It was also the result of the untrammelled intellectual freedom, scientific exploration, artistic freedom and, at times, almost chaotic internal debates over it’s direction. And now all these are under assault from forces that would prefer a much narrower, closed and static society. Using the pretext of antisemitism, Donald Trump has begun a full out assault on some of America’s greatest institutions of higher learning, seeking to bend them to his control and will. And some of them are bending. Even at the level of schools states controlled by MAGA supporters are banning books and, in one case at least, applying a filter against “wokeness” when assessing whether or not to hire teachers.
In the fields of medical and other scientific research the U.S. government is moving aggressively to end funding and to rollback supports for medical advances that don’t fit its narrow view of what is or is not correct. The research is being warped to fit the pre-conceived beliefs, and so advances in many areas crucial to human health and progress are being slowed or stopped, this under the Health and Human Services Secretary, Bobby Kennedy Jr, who is single handedly dismantling the great centres of medical research and management. His father must be rolling in his grave.
Even in the areas of arts and entertainment Trump and his allies are moving to defund and stifle the extraordinary creativity that has been the hallmark of American arts for at least a century. The perfect example is his takeover of the previously non partisan Kennedy Centre where he has now assumed the role of board chair and is actively intervening to ensure productions reflect his mudane tastes. This at the same time the government is cutting funding for public broadcasting in the United States.
And then there’s the existential issue of the effect of man made climate change on the world. Donald Trump and his supporters deny man made climate change because, to borrow a phrase from the documentary on the subject, it is a very inconvenient truth for those who prosper from the continued despoiling of the planet. After accepting massive donations from the petrochemical industry, the Trump administration has moved quickly to dismantle the supports and incentives for a transition to clean energy, casting them off as exemplars of woke liberalism and, particularly, of the administration of President Joe Biden. They have also withdrawn from international efforts to coordinate and accelerate the move away from carbon based energy. This, as the climate warms and the consequences appear as massive floods, hurricanes, firestorms, droughts and sea rise. I thought once the climate effects began to impact Americans, particularly those in red states, public opinion would change. But, thus far at least, apparently not, despite the advent of completely unprecedented disasters costing billions in damages and hundreds of lives. It’s probably a disservice to lemmings to draw a comparison between them and climate change deniers in the United States but it is oh so tempting.
So, while America turns increasingly inward and away from its great traditions of freedom, science, collaboration and progress, China just waits. It’s unlikely anyone would have predicted so many Americans would embrace a suicide pact that by any rational measure, is contrary to their own interests. But here we are. China is forging ahead with the technologies that will define the future while America looks longingly at a mythical and, for many, dark past. And although it is possible America may choose a different direction in 2028, that’s an eternity in the changing world we now inhabit. Increasingly, other nations will be pulled into the Chinese orbit, attracted by its wealth, military might and order, and repelled by the culture of blackmail and shakedowns increasingly characteristic of America’s approach to the world.
Is this the end of the “western moment”? I’m not sure but it does seem to be circling the drain. And the great tragedy is it is all so unnecessary and self inflicted.
Just sayin
GH
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