Tag Archive for: Donald Trump

Trump’s pick a good fit for US–Australia alliance

Arthur B. Culvahouse Jr has been nominated by Donald Trump to be the new US ambassador to Australia.

He will need to be ‘confirmed’ by Congress before he takes up the appointment, a process that could take up to several months.

If Australia got to choose a US ambassador and ran the selection process, we’d probably have three key things we’d like to see in a candidate.

Our top priority would be that Washington’s envoy in Canberra be directly connected to the US president—so that when she or he calls, the president not only picks up the phone, but listens.

Second, to be effective it’s essential that America’s top diplomat in Australia understands and can work the Washington policy machine and can connect to the US business, technology and education sectors to achieve outcomes.

Third, a US ambassador must understand the depth and value of the Australia–US alliance, and the Australia–US economic and social connection—and be driven to deepen them, not just maintain or let them coast. We don’t want paeans of praise for 100 years of mateship. We want an ambassador who is restless and full of energy to show what we can do together next, across the breadth of the strategic and economic relationship.

The good news is that Donald Trump’s nominee, A.B. Culvahouse, has all these attributes.

He’s been closely connected to the highest levels of US presidential administrations since 1976, serving in Ronald Reagan’s White House, as well as on various defence, intelligence, and foreign and public policy advisory boards. He’s also on the board of trustees of the Brookings Institution—one of the best US think tanks.

His long career in the law, peaking with leading law firm O’Melveny & Myers LLP, gives him a huge professional network across the US technology sector, the broader US corporate community, and into the US higher education sector—all areas that are key to building on the US alliance at this particular time in global affairs. He’ll have a fat rolodex and a well-connected smart phone.

Even more than Trump’s original nominee, Admiral Harry Harris, Culvahouse is well equipped to understand that Australian and American prosperity, freedom and security are built on much more than military-to-military, diplomatic and intelligence relationships. While these are crucial, we now need an agenda across a much broader strategic, economic and research landscape and we need to forge closer connections across these sectors between our two countries.

An amusing sidelight, maybe showing a bit of his character, was his line to then senator and presidential candidate John McCain during the 2008 election campaign. Running the vetting process that offered up Sarah Palin as a VP candidate for McCain to consider, he said she was ‘high risk, high reward’. McCain took the risk. Culvahouse’s judgement was right—with the risk side dominating.

From his experience in the defence and intelligence world, he will have an appreciation of bilateral security matters. He has visited Australia and spent time meeting people involved in national security policymaking—who I understand found him intelligent, informed and engaged, if low key in approach.

What’s new for him in the role? He’ll need to develop a public voice that works in the Australian political and domestic context, but that’s normal for newly appointed ambassadors. Others—like John Berry, the immediate past occupant of the post from 2013 to 2016—faced this challenge and did it well.

Any US ambassador also needs to be able to work with Australian ministers, other parliamentarians (notably the opposition) and officials as partners, and speak with frankness and clarity about where our national interests differ and where they overlap deeply.

Of course, he’ll be very well briefed by James Carouso, long-serving chargé d’affaires at the embassy, who has worked to create momentum in the alliance, and who knows Australia so well. Carouso hands over a going concern rather than a renovator’s dream, so Culvahouse will be able to get off to a running start.

I don’t see any real risks for his confirmation: he’s likely to have support from both sides of Congress. And he certainly understands what’s involved in a vetting and confirmation process, so he’ll be well prepared.

This is good news for the Australian–American relationship—not just in national security terms but across the broad strategic and economic landscape.

Policy, Guns and Money: US midterms

In this special podcast we look at next week’s crucial US midterms. Our guests are Stephen Loosley and Dr Gorana Grgic. Both are US specialists and both offer fascinating insights into this keenly observed election.

US foreign policy and the start of a new cold war

America’s greatest error was not the Iraq war, calamitous self-inflicted wound though it was. Rather, it was adopting Francis Fukuyama’s now discredited idea that the end of the Cold War marked ‘the universalization of Western liberal democracy as the final form of human government’.

That proposition rested on the notion that individual liberty, supported by mature democratic institutions, is a prerequisite for long-term social stability and national economic prosperity. It is a falsehood sustained for decades by an admirable truism of the American soul: the belief that everyone, deep down, is secretly an American—that if you’re just given the right opportunities, institutions and freedoms, you too will hold the same values, dreams and ideals.

This attitude sustained American foreign policy towards Beijing for 40 years. Washington actively fostered China’s rise, thinking that as people grew more educated and prosperous they would invariably demand and achieve greater political freedom—and that in the end, prosperity would socialise a newly democratic China as a ‘responsible stakeholder’ in the US-led global order.

When this process began, China’s economy was roughly the same size as Australia’s. Since 1979, China’s economy has grown 50-fold. Instead of democratic reform, Chinese President Xi Jinping has centralised authority, changed the constitution and extended his term indefinitely. Meanwhile, China’s government is rolling out a so-called social credit system profiling every citizen’s financial records, social media, purchasing behaviour and political affiliation—extending absolute control under an AI dystopia, in real time.

America’s policy of fostering Chinese growth has led the United States to near disaster. In Vice President Mike Pence’s speech on China, however, there was at last a formal declaration of failure:

After the fall of the Soviet Union, we assumed that a free China was inevitable. Heady with optimism at the turn of the 21st century, America agreed to give Beijing open access to our economy, and we brought China into the World Trade Organization.

Previous administrations made this choice in the hope that freedom in China would expand in all of its forms—not just economically, but politically, with a newfound respect for classical liberal principles, private property, personal liberty, religious freedom—the entire family of human rights. But that hope has gone unfulfilled.

Minus the theatrical flair, this was the Iron Curtain speech of the 21st century. The post–Cold War era is over. The China–US struggle has now begun.

During my lifetime, no political and strategic analysis has been so reliably abysmal as commentary on President Donald Trump and his administration. One source of constant headaches is the misinterpretation of his ‘America First’ foreign policy. Put simply, Trump’s approach can be summarised in six guiding principles:

  • Sovereignty is the highest priority.
  • Self-interest trumps ideology.
  • The United States is a country like any other.
  • Trade must be reciprocal.
  • Alliances are policy and strategy, not identity.
  • Commerce is not zero-sum, but power is.

Some have interpreted this to mean that Trump’s America is withdrawing from Asia in some kind of neo-isolationism. In fact, the exact opposite is true.

At its core, ‘America First’ is the consequence of a strategic rivalry between two great powers decoupled from any global ideological struggle. Americans rightly believe that democracy and individual liberty are superior to Confucian dictatorship for human wellbeing. What ‘America First’ discounts, however, is the belief that Western liberalism is necessarily more successful with regard to governance, economic growth or social harmony. After all, despite the questions surrounding the CCP’s legitimacy, the American political system is currently consumed by ideological division and deepening partisan hatred.

The China–US cold war contrasts with the struggle against the Soviet Union, where American defeat meant the collapse of global capitalism and classical liberalism. It resulted in an alliance framework organised by geography yet fused by ideology. This time around, however, American defeat means, well, American defeat. This fact, more than any other, guarantees that ‘America First’ will continue to attract adherents domestically and dominate American foreign policy thinking long after Trump himself leaves office.

All this has major implications for Australia. As a Western US ally marooned on the Asian periphery, surviving the new US–China cold war will easily be the most challenging foreign policy trial our nation has ever faced. And while the motivating cause has been misdiagnosed—something that risks further miscalculations down the line—it is heartening to see commentators from across Australia’s strategic traditions calling for a revised doctrine to respond to our rapidly deteriorating environment. Goodness knows we need it.

The US shift on China: Australia’s options narrow

At the beginning of October, US Vice President Mike Pence delivered arguably the most significant policy statement produced by the Trump administration. His speech to the Hudson Institute, a Washington think tank, on ‘the administration’s policy toward China’ sets out the most dramatic shift in relations with Beijing since Nixon and Kissinger’s ‘opening’ of relations in the early 1970s. Australians should read Pence’s remarks because they will surely lead to changing American expectations of alliances in Asia. Here are six conclusions about the speech and the trajectory of US–China relations.

1. This is a genuine policy change

Pence’s speech amasses a strong case for ‘a new approach to China’ and builds on a slew of American policy documents such as the national security strategy of December 2017, the unclassified summary of the 2018 national defense strategy, and White House and Pentagon statements on Chinese theft of American intellectual property. The speech points to intelligence assessments ‘about China’s actions’ that conclude ‘Beijing is employing a whole-of-government approach, using political, economic, and military tools, as well as propaganda, to advance its influence and benefit its interests in the United States’. That’s a view reinforced by senior intelligence officials publicly saying in recent weeks that China rather than Russia is the biggest threat to American strategic interests.

The speech is the product of something we have recently overlooked in Washington: away from the soap opera of the Oval Office, coherent policy work still goes on. What we have here is a widely shared administration, national security and intelligence community view that China has launched on an all-out competition to supplant America as the dominant strategic and technological power in the Asia–Pacific. The White House’s National Security Council has been working on a new China policy for months, is deeply critical of the Obama administration’s drift and indecision about pushing back against Beijing’s military annexation of the South China Sea, and is determined to stop the wholesale predation of American intellectual property.

2. Pence’s moment

It’s significant that Mike Pence has emerged as the champion of this new China policy agenda. Vice presidents don’t usually get to steer such consequential issues. Why so this time? Well, unlike Trump, Pence can deliver a tightly scripted 40-minute speech that goes much deeper than Trump’s inchoate distaste for ‘unfair’ trading relationships. Pence’s speech is unfailingly polite about Trump, noting that the president has ‘forged a strong personal relationship’ with Chinese President Xi Jinping, working on ‘most importantly the denuclearization of the Korean Peninsula’. Is it too cynical to imagine that Pence well understands that Trump’s infatuation with the ‘little rocket man’ is a busted flush? Stand aside Nikki Haley, Mike Pence is interested in the presidential nomination too.

3. ‘Wholesale theft of American technology’

A substantial part of Pence’s speech details the range of methods used by China to steal American IP. In June, the White House Office of Trade and Manufacturing Policy said that ‘estimates of the cost of trade secret theft alone range between $180 billion and $540 billion annually’—that is between 1% and 3% of US gross domestic product. A week after the speech, the US Justice Department advised that an intelligence officer, Yanjun Xu of China’s Ministry of State Security, had been extradited from Belgium to face charges of ‘attempting to commit economic espionage and steal trade secrets from multiple US aviation and aerospace companies’.

The criminal complaint lodged with the US District Court in southern Ohio makes fascinating reading, showing that between ‘at least March 2017’ and Xu’s arrest on 1 May 2018, US intelligence officers had tracked Xu’s cultivation of an employee in GE Aviation using the cover of working with academics at the Nanjing University of Aeronautics and Astronautics to steal data relating to the ‘manufacture of jet engine fan blades and fan containment structures’.

The Xu case is one spectacularly public example of what FBI Director Christopher Wray told the US Senate Intelligence Committee in February was being tracked ‘in almost every field office that the FBI has around the country’—industrial-scale Chinese IP theft. Pence rather biblically claimed that ‘the Chinese Communist Party is turning plowshares into swords on a massive scale’. This, rather than the balance of trade, is what has Washington most riled.

4. Curious reference to allies

Pence quotes China scholar Michael Pillsbury, saying: ‘China has opposed the actions and goals of the US government. Indeed, China is building its own relationships with America’s allies and enemies that contradict any peaceful or productive intentions of Beijing.’ The speech points to the ‘debt diplomacy’ of the Belt and Road Initiative. The takeaway for Australia is that Washington is watching how its allies deal with Beijing. Australia is regularly cited in DC these days as being ahead of the game in pushing back against Chinese influence. The US will expect us to continue the push. This surely will be raised when Pence meets Prime Minister Scott Morrison in the margins of the East Asia Summit and APEC in November.

5. ‘Beijing’s malign influence and interference’ in the US

About half of Pence’s speech focuses on Beijing’s shaping and influencing agenda within the United States: ‘The Chinese Communist Party is rewarding or coercing American businesses, movie studios, universities, think tanks, scholars, journalists, and local, state, and federal officials.’ What is most striking about his comments is that they precisely graft onto China’s own efforts in Australia. From encouraging American business leaders to ‘condemn our trade actions, leveraging their desire to maintain their operations in China’, through to media supplements, radio and TV broadcasts, and the role of the Chinese Students and Scholars Association, Pence makes clear that there is an established CCP playbook —called a ‘propaganda and censorship notice’—guiding their activities. It’s in play in Australia too.

6. ‘China wants a different American president’

In a speech with many surprises, perhaps the most startling claim is that ‘China has initiated an unprecedented effort to influence American public opinion, the 2018 elections, and the environment leading into the 2020 presidential elections’. Pence claims ‘what the Russians are doing pales in comparison to what China is doing across this country’ with the aim of removing Trump as president. It would be a great pity if a widely shared American concern about the PRC’s behaviour were to be turned into a highly partisan American political stoush.

Pence ends with the rather forlorn hope that ‘China’s rulers can still change course and return to the spirit of reform and opening that characterize the beginning of this relationship decades ago’. Nothing in his speech suggests that that hope is realistic.

What happens next? Trump remains mercurial and wildly unfocused, but Pence shows that there is a strategic plan behind the broader administration’s China policy. This has Beijing worried. China’s ambassador to the US, Cui Tiankai, told Fox News Sunday: ‘Honestly, I’ve been talking to ambassadors of other countries in Washington DC and this is also part of their problem … They don’t know who is the final decision-maker. Of course, presumably the president will take the final decision. But who is playing what role?’

Now here’s a curious thing: On 4 October—the same day Pence made his speech—Scott Morrison made an address to what was described as a Chinese–Australian community event. The speech appears on the website of the Australian embassy in Beijing, but not the prime minister’s official website.* Morrison says of China: ‘We welcome its remarkable success and we are committed—absolutely committed—to a long-term constructive partnership with China based on shared values, especially mutual respect.’

Shared values, indeed. Australia’s wiggle room to ‘balance’ American and Chinese interests is narrowing. The key message for Australia is that we need to get our own China thinking in order, reduce our dependence on Beijing’s money and set some realistic strategic policy goals for our national security. These are challenging times.

 

* As of the afternoon of Friday 19 October, we note that Scott Morrison’s speech to the Hurstville Community Lunch has been posted on the PM’s website.

Modelling the Trump effect

It might sound odd, but interstate behaviour turns out to be something that can be understood by modelling it as a complex system. Our modelling of interstate interactions over a very long timeframe seems to be robust enough to show the patterns of decline and fall of states. As an example, it’s solid enough to model the post–World War II period of prosperity and growth—and show the dominance of the US along with the rise of other powers we have experienced.

Looking ahead, it even seems able to indicate some important attributes that the interstate system might have as a result of the direction in which President Donald Trump is taking the United States.

A disturbing but not particularly surprising insight from the modelling is that Trump’s ‘America First’ agenda may well result in the US being the strongest nation—but mainly by creating a poorer and less capable future world—one where all nations lose, but other nations lose more than the US does. In other words, it’s not a ‘win–win’ world where all prosper, but a more selfish, narrower world.

Whether he realises it or not, Trump is trading off national wealth for global power. That’s because his isolationist policies seek to create events that are qualitatively different from the great run of historical events.

Those events—world wars, depressions, even the collapse of the Soviet Union—are, from a complex systems perspective, merely the working though of perturbations to the global system, the ensemble of competing and cooperating nation-states. Broadly, the system absorbs these perturbations over a relatively short period of time and returns to its trajectory.

But Trump seeks, instead, to reset the fundamental parameters of the world order rather than merely perturb them—and that will have consequences for the world’s balance of power.

We’ve modelled the ensemble of nation-states as a complex system, allowing us to examine the emergence and evolution of both wealth and power under different conditions of cooperation and competition. These models can be tuned for the different domains—such as land, sea, air, space and cyberspace—in which states interact. And, like all models of complex systems, they don’t purport to show precise behaviour, but rather the general classes of behaviour of the system—in this case, the classes of behaviour reachable by a system of real states that cooperate and compete with each other.

The graphs below shows some of our results with the model tuned for the physical domains, rather than the cyber domain. In these traditional domains, cooperation is manifested as trade in physical goods, and competition, in the limit, is manifested as kinetic warfare. We can see how the wealth (and hence power) of an interacting suite of initially equal states rises and falls over time for different levels of cooperation and competition. The upper graph shows a world where international competition rather than cooperation is the norm—a world not unlike that which existed in the lead-up to World War II. The lower graph shows a world with a bias to cooperation—not unlike the post-war world.

Changes in the wealth of states that emerge over time for model runs with two different levels of cooperation

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In the competitive world of the upper graph, a persistent structure to the international order emerges spontaneously. The structure consists of a long-lived hegemon of vast wealth, a relatively few middle powers whose wealth (or power) together don’t rise to the level of the hegemon and whose longevity is conspicuously less than the hegemon’s, and a tail of small, weak and relatively short-lived powers.

In earlier times, we saw these structures arise regionally, the Roman Empire being a case in point. But in more recent times the structure has become global, and today’s hegemon is, obviously, the US.

In the model, as in the real world, competitive challenges to the hegemon from rising powers are more often than not rebuffed, as can be seen at about time step 1600 in the competitive world of the upper graph in the figure. Thucydides’ Trap is a risky place for the challenger, as history shows. But such challenges are more likely to succeed in the cooperative world of the lower graph, as can be seen at about time steps 1500 and 1750. However, while these are successful transitions, the challengers don’t upset the system, but merely take the hegemon’s place in the same overall structure.

The two graphs capture the essence of the US’s strategic choices. In the aftermath of World War II, the US, the world hegemon, reset the international balance distinctly towards cooperation through the Bretton Woods agreement. It created a world with a bias towards international cooperation that ushered in 70 years of economic growth.

The Bretton Woods reset corresponds in the model to pushing the ensemble of nation-states from low levels of cooperation to higher levels—that is, from the system in the upper graph to the system in the lower graph. When that happens, global wealth rises, but with it more states rise in wealth, creating a significant number of wealthy middle powers (where before there had been few).

After Bretton Woods, the US rode on the top of the rising tide and remained the hegemon throughout the creation of what we now call ‘the rules-based international order’. But that allowed the emergence over time of a group of rising powers that could potentially challenge its hegemony, including Japan, the EU and, of course, China. That reset greatly advantaged the US, allowing it to grow richer and more powerful than it otherwise would have. But it also created a pool of possible challengers to its hegemony, and so created the catalyst for Trump’s reset—‘America First’.

There’s a certain logic in Trump’s agenda, even if it is not witting. It seeks to undo Bretton Woods and push the world’s ensemble of nation-states back to the low levels of cooperation seen in the upper graph.

This reset would have several distinct effects. First, all states, including the hegemon, would be poorer than they otherwise would have been. But the reset would have a second, more subtle effect. It would disproportionally impoverish the middle powers immediately below the hegemon in the pecking order, as can be seen in the upper graph. Thus, it would make it harder for other powers to rise and challenge the hegemon, extending the duration of US hegemony.

Can Trump’s perverse logic of narrow self-interest really be seen as a grand strategy? Or has he merely stumbled upon a policy setting that has vast strategic consequences? We may never know, but we will certainly experience the consequences.

China and the US: two ‘powerful victims’ that aren’t right to lead our world

I remember a fear strategic thinkers had less than a decade ago was that the US and China would agree between themselves how they would share power and influence, and that they would govern the rest of us as a new G2.

It was an anxiety of US allies that this would lock us out of decision-making and have our fates, and those of other states and peoples, decided by the ‘Big Two’. This was the ‘new type of great power relations’ that Xi Jinping said he was offering to the US under Barack Obama.

Whether that was ever what the Chinese Communist Party leadership in Beijing actually proposed to do maybe doesn’t matter so much now. The idea of the ‘Big Two’ ruling together seems a distant possibility just a few years on.

But even the notion of either of these states ‘ruling’ now looks bad for the rest of us, and in similar ways. For all their differences, the current leaders in Beijing and Washington have a disturbing psychology and outlook in common. Xi’s China and Donald Trump’s America are both great powers and both leaders see their countries and peoples as victims of the external world.

For Xi and the CCP, China is a nation that experienced a century of humiliation at the hands of stronger, more technologically advanced Western powers. Even now, with the Chinese economy big enough and the military now more than strong enough to feel secure, Beijing’s leaders feel sufficiently threatened and victimised that they’re acting coercively and aggressively—as we see in the militarisation and aggression by the PLA in the South China Sea. And all the while they’re telling the international community that this aggression is ‘defensive’.

For the Trump administration, with Trump himself being its embodiment, it’s all about others taking advantage of America, stealing its wealth, impoverishing and imperilling its people. He’s mad as hell about this and channels the anger of his base in rallies across America. ‘America First’ is all about the US ending an era of others exploiting the great nation.

Trump notes the costs to the US treasury from America’s engagement with the UN, presence in South Korea and contributions to NATO, while discounting the value of the global leadership that this engagement has brought to the US.

America has never been wealthier or more powerful than it is today. And yet America is a victim of the external world—whether of US allies like Japan, Canada, Germany or NATO more generally, or of its actual strategic adversaries, Russia and China.

Xi’s CCP state and Trump’s America First state are both acting out their psychologies as ‘powerful victims’.

Xi is overreaching by demonstrating the coercive way that a more powerful Chinese state intends to behave—showing that its Belt and Road infrastructure vision comes both laden with pitfalls for recipient governments and packaged with export of China’s model of authoritarian control through its Digital Silk Road elements.

The PLA—‘the Party’s Army’ in CCP literature—is similarly overreaching and revealing its willingness to escalate disputes (the USS Decatur incident in the South China Sea is the most recent example) and project power internationally where the CCP sees Chinese interests as threatened.

The US administration’s multibillion-dollar tariffs on Chinese exports are a solution to a problem, although just what problem is unclear. They are not a way of engaging with the CCP to change the root causes of Chinese economic policy, regulatory policy and practice, or cyber theft. Similarly, loud stump speeches criticising China like we saw from Vice President Mike Pence, when not backed up with a plan of action agreed with a coalition of states—built around US allies—will likely just be words mixed with US unilateralism.

At some point, America will probably rediscover the power of its alliance system and the value of working with allies and ‘like-minded’ partners—strategically and economically—although the America that emerges from the current period of leadership will be a changed country.

The root causes behind Beijing’s increasingly coercive use of power relate to the nature of Xi’s Communist Party, notably its own sense of victimhood and endless struggle to maintain power against domestic and foreign enemies.

Engaging with and changing the CCP’s deep-seated approach to its own people and to its external world will require a much deeper understanding of the nature and anxieties of the party than we’ve heard to date from America’s policymakers and current leader (and from many other world leaders). And it will require finding ways to connect with the 1.3 billion people in China despite the CCP’s ruthless censorship controls.

At its core, this isn’t actually about economics; and while it is about strategy, it’s also as much about sociology, psychology and political history.

So we’ve got the Big Two behaving like victims, while actually being great powers. Nations with a victim mentality that possess the wealth, reach and weapons of great powers are dangerous beasts.

We can’t wait for either of these two to lead us. It’s up to the rest of us to work this out. Maybe the US and China should start to consider the prospect of a world where multipolarity becomes real precisely because of their failures.

Present at the destruction

At the 73rd session of the United Nations General Assembly last month, there was a widespread sense of foreboding among world leaders. The anxiety went beyond standard concerns about what US President Donald Trump would say, do or tweet. Even before the summit began, Europeans, Canadians, Mexicans, South Koreans and Japanese had been consulting in earnest about the need for a new alliance to save the multilateral system.

In the late 1960s, former US secretary of state Dean Acheson looked back at the immediate post-war era and felt as though he had been ‘present at the creation’ of a new world based on shared rules and multilateral institutions. But at the UNGA this year, many attendees felt as though they were present at the destruction of that world.

There are a number of reasons for this. But many of them are linked to Trump, whose attacks on the Paris climate accord, the Iran nuclear deal, NAFTA, NATO, the World Trade Organization and the UN Human Rights Council have made it clear that he regards the international system as an unnecessary constraint on his administration.

To Trump’s mind, multilateral institutions tend to strengthen the hand of weaker powers vis-à-vis the US and are thus facilitating China’s bid for global dominance. Hence, his solution is to destroy the global order and then negotiate with other countries on a bilateral basis. That way, the US will always have the upper hand, enabling it to change the rules in its favour.

But Trump is far from the only threat to the multilateral order. Chinese President Xi Jinping has sought to portray himself as a saviour of the international system and yet his goal is not to defend the institutions on which global governance depends, but rather to bolster China’s power. By deprioritising human rights, Xi will be freer to pursue ambitious projects such as the Belt and Road Initiative, the aim of which is to enhance China’s influence throughout Eurasia and the Asia–Pacific region.

Moreover, Trump and Xi are just two among a larger group of alpha leaders who are challenging the traditional Kantian international order. Other aspiring strongmen include Presidents Vladimir Putin of Russia and Recep Tayyip Erdoğan of Turkey, Prime Ministers Narendra Modi of India and Benjamin Netanyahu of Israel, and Saudi Crown Prince Mohammad Bin Salman. The rise of such leaders makes upholding the rules-based order increasingly difficult.

The task ahead for the remaining multilateralists is to avoid becoming guardians of a status quo that is already dead. That will require carefully identifying the weak spots of the existing order and forging coalitions of the willing to address them. On trade, for example, multilateralists will need to work with China to defend the WTO; but they also need to reform the WTO so that it is equipped to curtail China’s problematic trade and investment practices.

The trickiest part of this strategy will involve knitting together a critical mass of countries that can uphold liberal values even when great powers will not. This will be essential as the world moves away from the vision of multilateralism that prevailed at the turn of the century.

When I was in Beijing a few weeks ago, Chinese strategists were debating whether the new order will be multipolar or bipolar. Most agreed that it will center on a bipolar confrontation between the US and China; but they doubted that it will resemble the Cold War and interwar periods. Instead, many expect a return to the geopolitics of the pre-World War I era.

In my view, the new world disorder will have four key features. First, ‘connectivity wars’ will be commonplace. The ties that bind countries together will not be severed, but nor will they create the conditions for true multilateralism. Instead, the major powers will weaponise their interconnections, giving rise to more trade wars, cyberattacks, sanctions regimes and electoral interference.

Second, non-alignment will become the default foreign policy. While the Cold War pitted the Western alliance against the Soviet bloc, the new bipolar world will allow for much more promiscuity. Rather than pledging allegiance to China or the US, most countries will keep their options open, working with the Chinese on some issues and with the Americans on others.

Third, strongmen will continue to reign. As geopolitical competition heats up, voters will turn to tough leaders whom they trust to uphold narrow national interests. But this lurch toward centralised decision-making will produce inconsistent and radical policies, along with perpetual cheating. Without an empowered multilateral system to police abuses, countries governed by strongmen will increasingly break their promises, lie and peddle conspiracy theories—Trump’s modus operandi.

Lastly, foreign policy will become more domestically oriented. Rather than trying to influence other countries or lead on the world stage, political leaders will focus on consolidating their base at home.

When confronting this kind of disorder, committed multilateralists will have to stay focused on defending the most critical aspects of the international system. That means they should be willing to play hardball against the alpha leaders. With their respective responses to Trump’s trade bluster, the European Union, Canada and Japan have shown that this is possible. But now they must go further, by developing a comprehensive approach to defending global rules in an age of national misrule.

Pondering Trump: alarm versus pragmatism

The Australian government’s approach to the US under President Donald Trump is deeply pragmatic: hold tight to what we’ve got, get what we can, and don’t anger Trump.

Loudly love the alliance. And if you can’t say anything nice about Trump, say nothing. So far, it’s working.

The Australia–US relationship since Trump’s inauguration has been defined by what the president has NOT done to Australia. He hasn’t questioned the alliance. He hasn’t hit Australia with trade tirades and tariffs. He hasn’t broken the refugee deal he so denounced when first taking office. And he hasn’t even sent an ambassador to Australia.

The pragmatic view is that Australia has stayed out of trouble with Trump and has done well with a transactional president. The pessimistic argument is that Trump is tearing up the international system and Australia must rethink and reposition.

In public, the Liberals proclaim the pragmatic view. And, of course, being in government enforces that discipline. Being out of office, Labor grandees are freer to sound the alarm. But even the Libs are musing about the alliance effects if Trump brings the legions home.

Purest pragmatism is dispensed by Alexander Downer, our longest serving foreign minister (1996–2007), who has just completed five years as high commissioner to the United Kingdom.

Downer says Trump has been better for Australia than Barack Obama. Obama ‘made America look weak’, Downer writes, and ‘under Obama, America pulled back from the world’.

Trump may be bombastic, crude and crass, Downer observes, but so what? The Downer judgement:

In Asia, Trump has built a half-decent personal relationship with Xi Jinping. That has helped with his attempts to get North Korea to scrap its program to build nuclear-armed intercontinental missiles that could hit American cities. The talks have happened; let’s see if that strategy has worked. It’s too early to say. Trump certainly hasn’t persuaded the Chinese to desist from militarising reefs in the South China Sea. But his aggressive commitment to American military power—including a huge increase in defence spending—has probably made the Chinese realise it would be dangerous to go much further in the South China Sea. All that’s good for us.

Downer says Australia’s experience of Trump has been mostly positive:

So the Trump presidency is going quite well for Australia. Not perfectly, mind you. Pity he pulled out of the Trans-Pacific Partnership. That was a bad mistake. But pulling out of the Paris Agreement will have a marginal effect. And he did exempt us from the steel and aluminium tariffs.

The former Labor foreign minister Gareth Evans (1988–1996) says the US under Trump is a rogue superpower, ‘tearing up the order it did so much to create’. Evans says the ‘irremediable damage’ being done by Trump means Australia must think hard about future responses. He offers four policy shifts:

  • Less America: Continued US engagement in the region is certainly highly desirable, Evans says, and Australia shouldn’t walk away from the alliance. ‘But less reflexive support for everything the US chooses to do is long overdue.’
  • More self-reliance: Australia should be more of a diplomatic free agent, Evans says, abandoning the constant urge to look over our shoulder to Washington.
  • More Asia: Strengthen relationships at all levels with key neighbours like India, Indonesia, Vietnam, Japan and South Korea, as a collective counterweight to a potentially overreaching China. At the same time, Evans says, Australia should ‘develop a more multidimensional relationship, not just a one-dimensional economic one, with China itself’.
  • More global engagement: Evan says Australia should be a relentless campaigner for continued global cooperation. ‘There are many global public goods issues on which we could make a positive difference, using our own strengths as a capable, credible middle power and the strategies of international coalition building that are the essence of effective middle power diplomacy.’

Former prime minister Tony Abbott observed to the Heritage Foundation in Washington that Trump is ‘the most unconventional president ever’, but is well on the way ‘to being a consequential president’—even if ‘erratic and ill-disciplined’.

In the Abbott view, Trump’s trump card is that ‘the rest of the world needs America much more than America needs us’.

The world will confront that need as the US brings its military home, as Abbott stated: ‘A new age is coming. The legions are going home. American values can be relied upon but American help less so. This need not presage a darker time, like Rome’s withdrawal from Britain, but more will be required of the world’s other free countries.’

Dealing with a deal-making president, Abbott said, Australia could not rely on tradition or sentiment. But in Abbott’s view, Australia is getting a good deal:

For Australia, Trump has so far been a good president. Despite a testy initial conversation with Prime Minister Turnbull, he’s honoured the ‘very bad deal’ that his predecessor had done to take boat people from Nauru and Manus Island and to settle them in the United States.

He seems to appreciate that Australia is the only ally who’s been side-by-side with America in every conflict since the Great War, and has exempted our steel and aluminium from the tariffs slapped on many others.

As a country that’s ‘paid its dues’ on the American alliance, we have been treated with courtesy and respect but that’s no grounds for complacency in dealing with a transactional president.

Even before Trump launched his trade battle with China, the former Labor prime minister Kevin Rudd observed in December that an ‘America First’ administration could find itself being put last in Asia.

Rudd said Trump’s withdrawal from the Trans-Pacific Partnership was symbolic of a US becoming less relevant to Asia’s economic future:

In fact, the US is increasingly emerging as an incomplete superpower. It remains a formidable military actor, with unique power-projection capabilities that extend far beyond its aircraft carrier battle groups to include an array of other capabilities that are as yet unmatched by other countries in the Asia–Pacific region. But its relevance to the region’s future—in terms of employment, trade and investment growth, as well as sustainable development—is declining fast.

Some in Washington DC seem to think that the US can sustain this pattern for decades to come. But many of us are skeptical. Unless and until the US chooses comprehensive economic re-engagement with the region, its significance to the overall future of Asia, the world’s most economically dynamic region, will continue to fade.

The idea of the US fading away will be encouraged by Trump’s decision to skip the East Asia Summit in Singapore and the APEC summit in Papua New Guinea.

If Trump had got to PNG, the expectation was that he’d also come next door to make a presidential visit to Australia. That chance of an Australian stop has now disappeared. So one other thing Donald Trump won’t have done to Australia in 2018 is visit the country.

Letter from America: Trump’s voice

Donald Trump’s language is limited, much like his store of ideas. The US president is a demagogue who rouses without rhetoric.

A bemusing bit of Trumpworld is the small range of his rant—intense rather than deep. Much emotion, little intellect.

Last week’s column gloried in the variety of American speech. So, this time, I’ll come at Trump via the way he puts together his verbs and nouns, his notions and nostrums.

Trump’s language is boiled-down Hemingway. That’s an insult to Hemingway, but …

Behold the power Trump punches from the lip. A Trump rally speech-cum-monologue is an extended riff on his tweets—the Twitter feed rendered as conversational opera.

The president hasn’t much use for facts, because in Trumpworld a Trump word equates to a fact. His ‘voice’ in all forms is consistent. Short sentences and simple words offer his imaginings. The Donald is central. There’s always an enemy. The pushback is always emotional. And everything is big, oh so big—claims and aims become achievements as they leave those lips.

The privileged tycoon has captured his people by speaking in the most common manner. Admit the political impact of Trump speech, even if the meaning can dismay.

The trade war on China and Europe and the imbroglio with Canada show the strengths and weaknesses of the way Trump uses language. He’s having a hard time explaining the war he’s chosen, other than the usual boasting bravado. The president’s voice is all about assertion, not explanation or persuasion.

Trump started the tariff combat because, he says, the US is getting ‘a lousy deal’ and the rest of the world ‘is killing us’. Politics involves simplifying what’s complicated, and this is simple us-against-them-till-we-win stuff.

The trade war’s price effects on American life are hovering on the horizon, and it’s starting to enter conversations. Last year, Trump supporters were happy to conclude that ‘He knows what he’s doing.’ When similar chats touched the trade war this year, the equivocal thought is the hope that he knows what he’s doing.

Here’s hoping that in declaring war, Trump is after great deals; to game the system, not destroy the system. Hope that in playing trade poker he’s prepared to take a lot of money off the table and let the game go on. And worry that Trump’s zero-sum mentality may wreck a complex system. The president’s refusal to endorse judges for the World Trade Organization—disabling the dispute-settlement mechanism—strikes at the global rules and their operation.

Nihilistic vandalism is strange trade policy, although it might be good politics.

In a letter from America last October, I argued that the surging US economy and Trump’s ability to inspire his base meant he’d win a second term as president. Those factors still apply.

America is humming. The official jobless rate is down to 4%, second-quarter growth hit 4%, and the re-build from the great recession has delivered the longest bull run in market history. Parts of America that voted for Trump feel confident and are growing. Trump mightn’t be responsible for much of this, but whatever happens on a leader’s watch belongs to the leader. He’ll claim all the credit—a core Trump consistency is that it’s always all about The Donald.

However, the Trump effect is so extreme it’s clouding the usual equation for a second term. That equation reads: strong economy plus sitting president with strong party support equals re-election.

Unusual elements could unbalance the equation. Trump is a revolutionary (or just revolting). He’s made a hostile takeover of the Republican Party. Trump crashes and trashes his own party the way he crunches everything.

A year ago, it was possible to argue that Trump would deliver standard conservative policies; he wouldn’t be as bad as his language. Responsible adults would see that Trump settled down to become a conventional Republican president. Sorry, people, not happening. Or, in New Yorkese, fuhgeddaboudit! Trump is doing what he said he’d do. With gusto.

Trump is changing the Republicans, but the party has little hold on him. That’s as scary for the party as it is for everybody else.

Australia hopes that Defense Secretary James Mattis can hang on, but the idea of ‘responsible adults’ standing between Trump and whatever he wants is very last year. Trump is ripping pages out of the rulebook. How American presidents behave. How they talk to America. How they get re-elected.

Trump isn’t interested in uniting America, pitching for the centre where the traditional majority is found. As Jonah Goldberg observes: ‘Donald Trump is the first president in living memory who seems utterly contemptuous of even appearing to care about voters outside of his base in a sustained way. He often refers to “my people” as if he is president of his fan base and no one else.’

Trump doesn’t want to broaden his base, just harden it. The base will re-elect him as president, unless he so enrages a lot of other bases that they unite to overthrow him.

The fascination of America’s November mid-term elections will be the extent to which Trump’s voice energises an anti-Trump coalition to shout back at him. November’s vote is a test run of whether other American voices can combine to be louder than Trump’s.

That answering voice would sound like John McCain’s farewell statement:

We weaken our greatness when we confuse our patriotism with rivalries that have sown resentment and hatred and violence in all the corners of the globe. We weaken it when we hide behind walls rather than tear them down, when we doubt the power of our ideals rather than trust them to be the great force for change they have always been.

Trump’s grand strategy

US President Donald Trump’s inability to think strategically is undermining longstanding relationships, upending the global order, and accelerating the decline of his country’s global influence—or so the increasingly popular wisdom goes. But this assessment is not nearly as obvious as its proponents—especially political adversaries and critics in the mainstream US media—claim.

America’s relative decline was a hot topic long before Trump took office. The process began when the United States, emboldened by its emergence from the Cold War as the world’s sole superpower, started to overextend itself significantly by enlarging its military footprint and ramping up its global economic and security commitments.

America’s ‘imperial overreach’ was first identified during President Ronald Reagan’s administration, which oversaw a frenetic expansion of military spending. It reached crisis levels with the 2003 US-led invasion and subsequent occupation of Iraq under President George W. Bush—a watershed moment that caused irreparable damage to America’s international standing.

On President Barack Obama’s watch, China rapidly expanded its global influence, including by forcibly changing the status quo in the South China Sea (without incurring any international costs). By that point, it was unmistakable: the era of US hegemony was over.

It is not just that Trump cannot be blamed for America’s relative decline; he may actually be set to arrest it. As unpredictable as Trump can be, several of his key foreign policy moves suggest that his administration is pursuing a grand strategy aimed at reviving America’s global power.

For starters, the Trump administration seems eager to roll back America’s imperial overreach, including by avoiding intervention in faraway wars and demanding that allies pay their fair share for defence. The fact is that many NATO members do not fulfill their spending commitments, effectively leaving American taxpayers to subsidise their security.

These are not new ideas. Before Trump even decided to run for office, pundits were arguing that the US needed to pursue a policy of retrenchment, drastically reducing its international commitments and transferring more of its defence burden onto its allies. But it was not until Trump, who views running a country much like running a business, that the US had a leader who was willing to pursue that path, even if it undermined the values that have long underpinned US foreign policy.

Trump’s focus on containing China—which FBI Director Christopher Wray recently labelled a far bigger challenge than Russia, even in the area of espionage—fits nicely into this strategy. Successive US presidents, from Richard Nixon to Obama, aided China’s economic rise. Trump, however, regards China not as America’s economic partner, but as ‘a foe economically’ and even, as the official mouthpiece China Daily recently put it, America’s ‘main strategic rival’.

In general, Trump’s tariffs aim to put the US back in control of its economic relationships by constraining its ballooning trade deficits, with both friends and foes, and bringing economic activity (and the accompanying jobs) back home. But it is no secret that, above all, Trump’s tariffs target China—a country that has long defied international trade rules and engaged in predatory practices.

Meanwhile, Trump is also working to ensure that China does not catch up with the US technologically. In particular, his administration seeks to thwart China’s ‘Made in China 2025’ program, the blueprint unveiled by the Chinese government in 2015 for securing global dominance over 10 strategic high-tech industries, from robotics to alternative-energy vehicles.

Trump’s diplomatic activities seem intended to advance this larger strategic vision of reversing America’s relative decline. He has tried to sweet-talk autocratic leaders, from North Korea’s Kim Jong-un to Russia’s Vladimir Putin, into making concessions—an approach that has garnered its share of criticism. But Trump’s compliments have not translated into kowtowing.

For example, despite all the controversy over Russia’s interference in the 2016 presidential election, the fact is that, since Trump took office, the US has expelled Russian diplomats, closed a Russian consulate, and imposed three rounds of sanctions on the country. His administration is now threatening to apply extraterritorial sanctions to stop other countries from making ‘significant’ defence deals with Russia, a leading arms exporter.

Trump has not flattered any foreign leader more than Chinese President Xi Jinping, whom he called ‘terrific and ‘a great gentleman. Yet, again, when Xi refused to yield to Trump’s demands, the US president did not hesitate to hit back ‘using Chinese tactics’, including suddenly changing negotiating positions and unpredictably escalating trade tensions.

Even Trump’s direct approach with North Korea undermines China’s position by bypassing it. Trump is right that transforming the US – North Korea relationship matters more than securing complete denuclearisation. If he can co-opt North Korea, China’s only formal military ally, northeast Asian geopolitics will be reshaped and China’s lonely rise will be more apparent than ever.

There are plenty of problems with Trump’s methods. His brassy, theatrical and unpredictable negotiating style, together with his China-like disregard for international norms, are destabilising international relations. Domestic troubles like political polarisation and legislative gridlock—both of which Trump has actively exacerbated—also weaken America’s hand internationally.

But there is no denying that Trump’s muscular ‘America First’ approach—which includes one of the most significant military buildups since World War II—reflects a strategic vision that is focused squarely on ensuring that the US remains more powerful than any rival in the foreseeable future.

Perhaps more important, the transactional approach to international relations on which Trump’s strategy relies is likely to persist long after he leaves office. Friends and foes alike must get used to a more self-seeking America doing everything in its power, no matter the cost, to forestall its precipitous decline.