Job interviews and book-related work have taken up the majority of my waking hours this week. Also, The Burning Time has fully arrived here in central Texas. It’s supposed to hit 108° on Monday…
The smartest short-term decision Beijing can make is simply to absorb the next round of blows and hold its punches. For instance, if Washington moves ahead to impose 25% tariffs on $16 billion of Chinese imports, Beijing would withhold fire, in the hope of enticing Washington into a ceasefire, which in turn could create an opportunity to negotiate a face-saving way to avoid further and much more costly escalations.
The most compelling rationale behind this strategy of quick capitulation is to protect China’s centrality in the global manufacturing supply chain. About 43% of Chinese merchandise trade in 2017 (totaling $4.3 trillion) is, according to the Chinese Ministry of Commerce, “processing trade” (which involves importing intermediate goods and assembling the products in China). What China gains from processing trade is the utilization of its low-cost labor force, factories, and some technological spillover. Processing trade generates low value-added and profitability. For example, Foxconn, the Taiwanese company that assembles iPhones in China, had an operating margin of only 5.8% last year.
One of the greatest risks China faces in a prolonged trade war with the U.S. is the loss of its processing trade. Even a modest increase in American tariffs can make it uneconomical to base processing in China. Should the U.S.-China trade war escalate, many foreign companies manufacturing in China would be forced to relocate their supply chains. China could face the loss of millions of jobs, tens of thousands of shuttered factories, and a key driver of growth.
However, capitulating to a “trade bully,” as the Chinese media calls Trump, is hard for Xi, a strongman in his own right. Worse still, it is unclear what Trump wants or how China can appease him. The terms his negotiators presented to Beijing in early May were so harsh that it is inconceivable that Xi could accept them without being seen as selling out China.
Even if the trade war with the U.S. could be de-escalated with Chinese concessions, Beijing faces another painful decision. The trade war in general, and in particular the forced shutdown of the Chinese telecom equipment maker ZTE after Washington banned the company from using American-made parts have highlighted China’s strategic vulnerability from its economic interdependence with the U.S. Before the two countries became geopolitical adversaries, economic interdependence was a valuable asset for China. It could take advantage of this relationship to build up its strength while the mutual economic benefits cushioned their geopolitical conflict.
But with the overall U.S.-China relationship turning adversarial, economic interdependence is not only hard to sustain (as shown by the trade war), but also is rapidly becoming a serious strategic liability. As the economically-weaker party, China is particularly affected. In the technological arena, China now finds itself at the mercy of Washington in terms of access to vital parts (such as semiconductors) and critical technologies (operating systems such as Android and Windows). Should the U.S. decide to cut off Chinese access for whatever reason, a wide swathe of Chinese economy could face disruption.
China’s somewhat vulnerable on semiconductors, but it’s severely vulnerable on semiconductor equipment.
Yes, please! Please go straight to LaGuardia and shut it down. But don’t stop there! “Every airport” needs to be occupied and shut down by Democrats. Between now and the midterm elections, Democrats should do all they can to make air travel inconvenient, and preferably impossible.
This actually happened not too long ago, in the fall of 2001. Ocasio-Cortez may be too young to remember it clearly, but all of America’s airports were closed for a few days as a result of al Qaeda’s terrorist attacks. Ocasio-Cortez is more ambitious, of course. She doesn’t just want to shut down “every airport” for a few days, she wants to make it long-term. Terrific, I say! Led by Ocasio-Cortez, the Democratic Party could be as popular as al Qaeda by November.
The most difficult times I faced during my years with the LAPD were during the years Bernard Parks served as its chief. Parks, in an overreaction to the Rampart scandal (which, though a genuine scandal, was confined to a handful of officers at a single police station), had disbanded the LAPD’s gang units and instituted a disciplinary system that placed a penalty on proactive police work. It was under Chief Parks that I attended a supervisors’ meeting after a week in which my patrol division had seen four murders and a wave of lesser crimes. Despite these grim statistics, not a single word at this meeting touched on the subject of crime. What did we talk about? Citizen complaints. And even at that we didn’t discuss them in terms of the corrosive effect they were having on officer morale. Instead, we talked about the processing of the paperwork and the minutia of formatting the reports. Fighting crime, it seemed, had taken a back seat to dealing with citizen complaints, even the most frivolous of which required hours and hours of a supervisor’s time to investigate and complete the required reports.
As one might have expected, officers reacted to these disincentives by practicing “drive-and-wave” policing. Yes, they responded to radio calls as ever, but it became all but impossible to coax them out of their cars to investigate suspicious activity when they came upon it. As one might also have expected, the crime numbers reflected this change in police attitudes. Violent crime, which had been falling for seven years, began to increase and continued to increase until Bernard Parks was let go and replaced by William Bratton.
Which brings us back to Baltimore, where, USA Today informs us, 342 people were murdered in 2017, bringing its murder rate to an all-time high and making it the deadliest large city in America. (Baltimore’s population last year was about 611,000. In Los Angeles, by comparison, with a population of about 3.8 million, there were 293 murders last year.)
The Baltimore crime wave can be traced, almost to the very day in April 2015, that Freddie Gray, a small-time drug dealer and petty criminal, died in police custody. When Baltimore State’s Attorney Marilyn Mosby made the ill-considered decision to charge six officers in Gray’s death, she sent a clear message to the rest of the city’s police officers: concerns about crime and disorder will be subordinated to the quest for social justice.
As was the case in Los Angeles years ago, the result was entirely predictable. Officers disengaged from proactive police work, minimizing their risk of being the next cop to be seated in the defendant’s chair in some Marilyn Mosby show trial. The prevailing thought among Baltimore’s cops was something like this: They can make me come to work, they can make me handle my calls and take my reports, but they can’t make me chase the next hoodlum with a gun I come across, because if I chase him I might catch him, and if I catch him I might have to hit him or, heaven forbid, shoot him. And if that happens and Marilyn Mosby comes to the opinion that I transgressed in any way . . . well, forget it. Let the bodies fall where they may, and I’ll be happy to put up the crime-scene tape and wait for the detectives and the coroner to show up.
(Hat tip: Ed Driscoll at Instapundit.)
— Matt’s Idea Shop (@MattsIdeaShop) July 17, 2018
Or this: pic.twitter.com/tBkB45hyke
— Eric Maginnis (@maginnis_eric) July 14, 2018
And I just posted a Ted Rall cartoon. And the moon became as blood…