Memo: As trade tensions rise, Americans favorability China lowers

MEMO: MEDIA TENDENCIES + TRENDS: US-CHINA COMMERCIAL RELATIONS

Pew: Concerns about China include economic threats, cyberattacks, environmental damage, and human rights

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American attitudes toward China have become less favorable over the past year, as trade tensions intensify between the United States and China according to a Pew Research Center study released on August 28, 2018. The survey was conducted from May 14 to June 15, 2018, among 1,500 adults.

Pew reports: "Trade disputes have dominated relations between the world’s two biggest economies in recent weeks, as Washington and Beijing have slapped tariffs on goods from their respective countries. Although tensions over trade are hardly new, they have intensified during the Trump administration, and as a new Pew Research Center survey illustrates, American attitudes toward China have become somewhat less confident over the past year.

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"Overall, 38% of Americans have a favorable opinion of China, down slightly from 44% in 2017. Attitudes toward China have fluctuated to some extent in recent years, becoming more negative during the 2012 election cycle, but more positive in 2017, before this year’s decline."

Worries about job losses, debt, and the trade deficit are less common today than in 2012 when the economic mood in the US was generally more negative. Over the same period, however, Americans have become more concerned about the threat of cyberattacks from China.

The report sees that a majority of those surveyed – 62% – believe that US debt to China was a “very serious” issue, with 27% saying it was “somewhat serious.”

In a bright spot among those surveyed, young Americans typically have more positive attitudes toward China. About half of 18- to 29-year-olds (49%) express a favorable view of China, compared with only 37% of those ages 30 to 49 and 34% of people 50 and older. However, this generational break should not be seen as a Chinse soft-power breakthrough as younger Americans are generally much less concerned than older generations about cyberattacks and job losses to China. Also, younger Americans tend to be less engaged in national politics and tend to vote less consistently.

More significant than the generational break is notable differences along partisan lines. Pew reports: "Republicans and Republican-leaning independents are especially worried about economic issues – such as debt, job losses, and the trade deficit – in the US-China relationship, while Democrats and Democratic-leaning independents are particularly worried about the impact of China’s growth on the global environment."

In an issue that is failing to capture the imagination of Americans beyond the Beltway, Pew reports survey participants are less concerned about China’s tensions with Taiwan. Writing in The Diplomat, Shannon Tiezzi says: "A new public focus by policymakers and elites on China as a military and strategic rival is barely registering for the average American."

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Memo: Global Magnitsky Sanctions for China over its Xinjiang Crackdown?

MEMO: MEDIA TENDENCIES + TRENDS: US-CHINA COMMERCIAL RELATIONS

Back in February, China’s security services detained several close relatives of four US-based reporters working for Radio Free Asia.

The detentions were an apparent attempt to intimidate or punish them due to the coverage produced by their relatives over Beijing's activities in the Muslim-majority Xinjiang region.

According to Human Rights Watch, Muslim ethnic Uighurs have been detained in “political education centers” by Chinese authorities in the western province of Xinjiang in recent months.

Beijing called the crackdown a “strike hard” campaign against terrorists and separatists, but effectively this means Chinese government security services can target anyone who expresses their religious or cultural identity in the province.

For months, international media have relentlessly reported on the mass incarceration and cultural suppression of China’s Muslim Uyghur minority —allegations that Beijing vehemently denied at a United Nation's panel for the first time earlier this month.

At a meeting of a United Nations human rights panel, a Chinese delegation categorically said there was no such thing as “re-education centers” in Xinjiang nor was there any subjugation of religious freedom in the Muslim-majority region. The Chinese response comes after the United Nations Committee on the Elimination of Racial Discrimination (CERD) said that there were “credible reports” that 2 million Uyghur and Muslim minorities in China are held captive in secret internment camps.

Following this hearing, The Economist led with the bold headline: "Apartheid with Chinese characteristics" and wrote “China has turned Xinjiang into a police state like no other. Totalitarian determination and modern technology have produced a massive abuse of human rights.”

This situation in  Xinjiang is a growing soft-power and human rights issue for China. Being slapped with the apartheid label is problematic for numerous reasons and will impact American business operating in or selling to China more and more.

This issue will increase the public affairs implications for American businesses operating in China. More and more consumers are demanding higher values from brands and companies they interact with and from the products they purchase.

This growing issue compelled Liu Xiaoming, the Ambassador of China to the United Kingdom (UK), to write a letter-to-the-editor of The Financial Times entitled, "Harmony in Xinjiang is based on three principles."

Ambassador Liu ended the letter by saying: "The UK also faces the issues of infiltration and spread of religious extremism. Hence the British government issued its counter-terrorism strategy last June to underline the importance of early intervention in the cases of people under the influence of extremist views. This shows that terrorism is the common enemy of all mankind and the infiltration of religious extremism is a common challenge to the whole world. Every country needs to tackle this challenge effectively. It is time to stop blaming China for taking lawful and effective preventive measures."

Ten days ago, Isaac Stone Fish in Slate asked: "Why is the NBA in Xinjiang?" He reported the league is "running a training center in the middle of one of the world’s worst humanitarian atrocities."

Stone Fish wrote: "Doing business in an authoritarian country like China inevitably presents ethical and political dilemmas, as several tech giants and airlines have recently learned. But doing business right in the midst of a campaign that some human rights groups have described as genocide is another thing entirely—and most US companies have unsurprisingly given Xinjiang a wide berth. Yet one of the exceptions is striking: the National Basketball Association. In Oct. 2016, the NBA set up one of its three Chinese training centers in, of all places, Ürümqi, the capital of Xinjiang and site of massive race riots in 2009 that left hundreds dead. The center, which houses roughly 240 student-athletes ages 14 to 18, according to its website, has kept a very low profile. That’s unsurprising—because the NBA presence in Xinjiang is shameful."

Such media coverage has helped this issue to gain a higher profile on Capitol Hill. ABC News reported this week that lawmakers urged President Trump to sanction China over its Xinjiang crackdown.

Bipartisan members of Congress sent a letter to the president and senior members of his administration suggesting sanctions be imposed on Beijing due to the millions of Uyghur Muslims in the region who are reportedly being incarcerated in so-called “training centers.”

“Muslim ethnic minorities are being subjected to arbitrary detention, torture, egregious restrictions on religious practice and culture, and a digitized surveillance system so pervasive that every aspect of daily life is monitored,” the bipartisan letter said. “Given the gravity of the situation and the severity and scope of the rights abuses being perpetrated, we urge you to apply Global Magnitsky sanctions, and consider additional measures, against senior Chinese Government and Communist Party officials who oversee these repressive policies.”

According to the letter, organized by the bipartisan Congressional-Executive Commission on China and its chair Senator Marco Rubio (R-FL) and co-chair Representative Chris Smith (R-NJ), the crackdown has targeted Muslim minorities for even the most straightforward displays of their religion in public or for communicating with family overseas.

“No Chinese official or business complicit in what is happening in the XUAR should profit from access to the United States or the US financial system,” the lawmakers write in their letter.

In speaking with a longtime business lobbyist representing American multinational companies in China this week, she voiced her frustration over the state of the US-China commercial relationship. She told me she was frankly growing more and more conflicted over her years of work to advance the relationship; she specifically mentioned the Chinese government's activities in Xijinaing.

As consumers demand more from the companies that receive their money and attention, coupled with the use of the word apartheid as well as growing oversight on Capitol Hill, this is an issue to watch.


John McCain = Hero

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John McCain = Hero

Marc Ross Daily
August 27, 2018
Curation and commentary from Marc A. Ross

Reporting from Alexandria, Virginia

Marc Ross Daily  = Business News at the Intersection of Global Politics + Policy + Profits

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TOP FIVE

✔️ Germans are getting fed up with America

✔️ Biggest question in Australian politics: How to handle China

✔️ UK to start work on satellite system to rival EU's Galileo

✔️ John McCain = Hero

✔️ America has fallen out of love with the sedan

ROSS RANT

“We so often look so long and so regretfully upon the closed door, that we do not see the ones which open for us.” - Alexander Graham Bell
 

GEOECONOMICS

Trump’s stances weaken support for US to lead global banking body: WSJ reports, Trump’s antagonistic posture towards international institutions at foreign summits this summer soured some European officials on the candidacy of a top Fed official to helm the international Financial Stability Board.

Leonid Bershidsky: Why Germans are getting fed up with America https://bloom.bg/2P7wI0a

It’s getting harder for Angela Merkel and the German elite to hold back growing anti-Americanism.

Germany's new strategy to deal with Donald Trumphttps://p.dw.com/p/33j4F

FT: India approves $6bn military spend in arms race

Abe seeks 3 more years, with polls showing 39% support:
Nikkei reports, prime minister eyes constitutional change with new party mandate but 73% skeptical.

Australia emerges from crisis with a new PM: Reuters reports, Treasurer Scott Morrison will be Australia’s new prime minister after winning a three-way battle for the leadership of the Liberal party on Friday, with incumbent Malcolm Turnbull not contesting the party ballot.

John Garnaut: Australia’s China reset http://bit.ly/2P9WNvS

Andrew Peaple: The biggest question in Australian politics: How to handle China https://on.wsj.com/2BOXLvD

Australia’s economy and financial markets have become largely immune to its turbulent politics.

From engagement to rivalry: Tools to compete with China: To arrive at a new consensus, the United States needs to address the weaknesses in Americans’ knowledge of China while rethinking the connections between the ways China is analyzed and how policy is made. http://bit.ly/2P4D1Sn

The US is overly paranoid about China’s tech risehttps://wapo.st/2w2mpna

Reuters: Much detail, little progress in US-China talks, sources say

SCMP: Exit the Dragon? Germany gets tough on Chinese investment https://sc.mp/2PCNqFO

A China-led wave of company acquisitions has seen Berlin grow leery of granting market access to foreign investors. But fears of an exodus of tech know-how are balanced by a desire to do business on the mainland.

Macron targets French welfare spending as deficit pressure rises: Reuters reports, French President Emmanuel Macron's government will tackle social spending in the next wave of its reforms as weaker than expected growth puts pressure on the budget deficit, the prime minister said on Sunday.

UK to start work on satellite system to rival EU's Galileo: Sunday Telegraph reports, Britain is to start work on its own satellite navigation system to rival the European Union's Galileo project because the UK's access to sensitive security information could be restricted after Brexit, the Sunday Telegraph reported.

US, Mexico near breakthrough on key trade issues: FT reports, a resolution could help clear the way for NAFTA renegotiation.

LAT: US and Mexico said to be close on revamping NAFTA

Bloomberg: US, Mexico said poised to reach NAFTA deal soon as Monday


AMERICAN POLITICS

NYT: John McCain, war hero, senator, presidential contender, dies at 81

David Foster Wallace on John McCain: ‘The weasel, twelve monkeys and the shrub’ https://rol.st/2BR3rW4

Seven days in the life of the late, great John McCain

Sen. John McCain’s death leaves foreign-policy void: WSJ reports, John McCain, throughout his career, was a driving force behind the interventionist wing of the Republican Party, a faction that views overseas alliances and troop commitments as a stabilizing force in the world.

Mark Salter: John McCain spent his life serving the dignity of his fellow man https://wapo.st/2BQriVG

FT: McCain’s death sparks mourning across political divide

The Times: Trump is
odd man out as US unites in tribute to McCain

Trump rejected plans for a White House statement praising heroism and life of McCain: WP reports, the president opted instead for a short tweet that mentioned Sen. John McCain’s family rather than the man himself. The move underscored the bitter relationship between the two and Trump’s continued anger toward McCain, people close to both men said.

David Smith: John McCain opened Pandora’s box – Sarah Palin came out, but Trump was right behind her.http://bit.ly/2BQPbg2

The senator regretted his choice of running mate. In 2008, no one could have imagined what it would mean

Arizona’s tough choice: A senator cut from McCain’s mold or Trump’s: NYT reports, the vacant Senate seat has exposed the rift between Mr. McCain’s followers and the party’s Trumpian base.

WP: In most of the country, McCain is being lauded as a hero. On Arizona’s GOP campaign trail, he’s a pariah.

More and more buzz that Cindy McCain, the Senator's wife, will be appointed to fill the seat until a required election in 2020.

Today: Trump meets President Kenyatta of Kenya at the White House.

NY investigation, not Mueller, is ‘greatest threat’ to Trump, adviser says: WP reports, “There are no constitutional defenses to what the Southern District is investigating,” said retired Harvard Law School professor Alan Dershowitz, an informal adviser to President Trump.

OTD: In 1859 the first commercially productive oil well was drilled at Titusville, Pennsylvania

Why mayors from around the world are coming to Detroit https://on.freep.com/2BK4bMG  

ENTERPRISE

Nikkei: VW's hot streak in China conceals signs of slipping grip

Meditation start-up Calm looks to grow beyond its app: FT reports, co-founder says group is considering a push into retail in quest to be ‘Nike of the mind’

HBD: Gary Cohn, economic adviser to President Trump (2017-March 2018), president of Goldman Sachs (2006-17), 58

Amazon ‘will pass Apple as biggest world business’: The Times reports, Amazon will overtake Apple to become the world’s largest public company because it has “reinvented shopping”, Sir Terry Leahy, the former boss of Tesco, has predicted. 

Reuters: Cigna, Express Scripts shareholders approve $52 billion deal

TRENDS

America has fallen out of love with the sedan: WSJ reports, long a symbol of the American open road, the classic sedan is fading as millions of drivers migrate to sport-utility vehicles, prompting automakers to rework their lineups.

How one Silicon Valley CEO masters work-life balance: NYT reports, Chris O’Neill, of Evernote, makes a list every night, stays fit, blocks out his workweek by theme and listens to his children. https://nyti.ms/2BOTLv7

"Content twitching is one of the reasons we feel overwhelmed and maybe not as productive. We’re constantly content twitching between apps and topics."

"Frankly, I just try to eat less. I’ve experimented with intermittent fasting, but that’s become like
Allbirds shoes in the Valley — so much a stereotype that I don’t even want to mention it."

Tony Schwartz: Addicted to distraction http://bit.ly/2BMIMm3

The end of ads: Advertising is obsolete, writes University of Kentucky’s Ramsi Woodcock. Here’s why it’s time to end it. http://bit.ly/2BR39OY

CULTURE

RIP: Neil Simon

How Neil Simon wrote his own second act and finally won over critics: LAT reports, at his peak, Neil Simon's plays were popular in a 'Hamilton' sort of way, but that didn't necessarily earn him respect among theater writers. The Times' theater critic looks at the trajectory of Simon's career and the autobiographical work that finally won over some skeptics.

“Crazy Rich Asians” topped the North American box office for a second weekend in a row. 

GQ's best new restaurants in America, 2018http://bit.ly/2BRfD9e

CBC: Canadians on track to spend almost $6B on pot this year — most of it the illegal variety

SPORT

Today: The US Open tennis championships begin at Flushing Meadows, New York

AFP: French Open courts controversy by banning Serena Williams’ catsuit

David Wharton: Troubling details of Ohio State report present a problem college football must fix https://lat.ms/2BPtzjZ

Golf: Bryson DeChambeau wins FedEx Cup opener

HBD: Bernhard Langer, golfer, 61

Guardian: Barcelona, Argentina … Atlanta: How Tata Martino came to thrive in MLS http://bit.ly/2Pab0sO

The Atlanta United coach has managed Argentina and Lionel Messi’s Barcelona. But he has relished the opportunity of a blank canvas in MLS

Abramovich puts £2.5bn price tag on Chelsea: The Times reports, Roman Abramovich will demand an offer of at least £2.5 billion to consider selling Chelsea. The club’s owner has received numerous inquiries since visa problems this summer led him to put on hold the £1 billion redevelopment of Stamford Bridge, but he is not actively looking to sell the club.

Curious tale of Milan’s short-lived owner, a vulture fund and a barbecue: Guardian reports, Li Yonghong and his collapsed €740m takeover of Milan went quiet until the businessman resurfaced at a family get-together.

Why Ethiopia's running success is about more than poverty and altitude: The strong record of the country’s athletes is often attributed to these factors, but hard work, planning, and creativity play a key role. http://bit.ly/2P9k4Ot