Is Trump Serious Close Merchandise War? China’S Leaders Hunt For Answers

By KEITH BRADSHER and JANE PERLEZ
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BEIJING — In an elegantly furnished dorsum room at a conference inward eastern China inward December, a fellow member of the Chinese leadership asked American tech executives for help. The official, Wang Huning, a Communist Party strategist who has spent much of his career sizing upward the USA equally a geopolitical rival, wanted to know whether President Trump was serious nearly a merchandise state of war with China— in addition to whether his American visitors could serve equally a channel of communication to the White House.


He has non been alone.

For the yesteryear few months, some of the most powerful men inward China — allies of President Xi Jinping with longstanding ties in addition to deep sense with the USA — withdraw maintain been casting nearly for a amend understanding of Mr. Trump in addition to how to respond to his combative merchandise agenda, according to several people they withdraw maintain consulted.

Vice President Wang Qishan has met inward recent weeks with a serial of American occupation concern leaders in addition to onetime cabinet officials to query them nearly Mr. Trump’s merchandise threats. Liu He, the Politburo fellow member coordinating economical policy, has done the same. One longtime China scholar inward the USA said 5 officials had visited him seeking advice inward the yesteryear ii weeks alone.

In these meetings, the Americans withdraw maintain warned that Mr. Trump’s complaints should live taken seriously because of widespread frustration inward Washington with Chinese policies, particularly a $300 billion programme to dominate critical high-tech industries, known equally Made inward China 2025, that has alarmed the USA national safety establishment.

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It is unclear whether that message is making it through to Mr. Xi — or whether he has chosen to ignore it later final that Mr. Trump is bluffing in addition to that the USA volition dorsum off, equally it has inward the past.

The Communist Party of China’s novel Politburo Standing Committee, the nation’s top decision-making body, inward Beijing inward October. CreditWang Zhao/Agence France-Presse — Getty Images

Governing with a novel mandate since engineering the removal of presidential term limits finally month, Mr. Xi has personally taken command of decision-making inward the merchandise standoff, according to analysts in addition to political insiders with ties to the leadership. His unquestioned authority, some say, has made it to a greater extent than hard for the political party apparatus to deliver intelligence that contradicts him.

“When you lot withdraw maintain this sort of regime, you lot desire to written report the goodness story,” said Tao Jingzhou, a managing partner at the global police theatre Dechert who deals with senior Chinese officials. “I withdraw maintain the impression the leadership is non fully briefed nearly the seriousness of the atmosphere against China inward the U.S. establishment.”
The confusion over Mr. Trump’s opinion on merchandise deepened on Th when he said, inward a surprise move, that he was considering rejoining the multicountry merchandise bargain known equally the Trans-Pacific Partnership, later abruptly withdrawing the USA from the negotiations finally year.

Mr. Xi has elevated a coterie of advisers who withdraw maintain built their careers inward business office on their mightiness to interpret in addition to grip the United States, peradventure to a greater extent than so than whatever of his predecessors. But they seem surprised in addition to confused yesteryear Mr. Trump’s rapid-fire decisions in addition to merchandise threats, similar the movement to impose punitive tariffs on an additional $100 billion inward Chinese imports, according to many who withdraw maintain met with them.

These men include Wang Huning, the party’s master copy ideologue, who has written a mass nearly his visits to the USA equally a immature scholar; Wang Qishan, Mr. Xi’s most powerful lieutenant, who has cultivated relationships on Wall Street for decades; in addition to Mr. Liu, the vice premier inward accuse of the economy, who has master’s degrees from Seton Hall in addition to Harvard. Mr. Xi has equally good promoted Yang Jiechi, a onetime ambassador to Washington, to the party’s 25-member Politburo.

Despite this deep bench of expertise, the Chinese leadership appears at a loss, grasping for interlocutors inward an American political landscape that has been scrambled yesteryear Mr. Trump. For to a greater extent than than ii decades, Beijing has watched corporate America brand the instance for merchandise with China in addition to i American president later some other comprehend that agenda. But Mr. Trump has defied that pattern.

A Chinese-made C919 rider jet taking off on its offset flying at Pudong International Airport inward Shanghai finally year. China wants to operate largely self-sufficient inward high-tech industries similar commercial aircraft.CreditPool photograph yesteryear Andy Wong

“Chinese experts exercise non sympathise the electrical flow province of the United States,” said Jie Zhao, a professor at the China Executive Leadership Academy Pudong, which trains senior civil servants inward Shanghai. “They exercise non sympathise Trump, exercise non sympathise his squad in addition to exercise non sympathise the root of his policies.”

Part of the employment is that the leadership’s park contacts inward the USA — ofttimes institution figures with backgrounds inward international finance in addition to diplomacy — withdraw maintain been largely sidelined yesteryear Mr. Trump.

“The people with whom Chinese officials are familiar inward Washington are mainly the enemies of Trump,” said Shi Yinhong, professor of international relations at Renmin University inward Beijing. “Trump hates those people.”

Beijing has equally good been frustrated equally potential allies withdraw maintain fallen out of favor, including Gary D. Cohn, the master copy economical adviser who counseled against tariffs but resigned finally month, in addition to Mr. Trump’s son-in-law, Jared Kushner, who appears to withdraw maintain stepped dorsum on the trial because of his family’s occupation concern interests inward China.

Looking for answers, Vice President Wang has met instead inward recent weeks with 3 onetime Treasury secretaries — Timothy Geithner, Henry M. Paulson Jr. in addition to Lawrence H. Summers — equally good equally Robert B. Zoellick, the onetime USA merchandise representative, in addition to William S. Cohen, the onetime defence secretary.

Business leaders who withdraw maintain met with Chinese leaders inward the same menses include Timothy D. Cook of Apple, Jamie Dimon of JPMorgan Chase, Chuck Robbins of Cisco, Stephen A. Schwarzman of the Blackstone Group in addition to David M. Solomon of Goldman Sachs.

“They ask, ‘Who tin nosotros beak to?’” said David M. Lampton, the scholar who has late hosted 5 Chinese officials. “They don’t view a stable structure.”

President Trump in addition to Melania Trump inward Beijing inward November. CreditDoug Mills/The New York Times

But Professor Lampton, of the Johns Hopkins School of Advanced International Studies, added that despite their frustration, the Chinese seemed satisfied that they tin “outlast a U.S. direction that alienates its allies, erodes its ain political base of operations in addition to has a world with a depression threshold for pain.”

There are vague hints of disagreement inward Beijing over how to respond to Mr. Trump’s merchandise threats. Some inward the elite withdraw maintain emphasized the potential touching of a merchandise state of war on the Chinese economic scheme in addition to urged negotiations, piece others withdraw maintain argued that the dispute is business office of a broader attempt to thwart China’s ascent — in addition to that Beijing must respond accordingly.

“On the merchandise state of war issue, the hawkish atmosphere inward China is quite strong correct now,” said Chen Jieren, a political commentator inward Beijing.

Although the tariffs that Mr. Trump has enacted so far hitting only a minor segment of China’s steel in addition to aluminum sector, the hurting of a proposed additional laid would live spread across manufacturers of to a greater extent than than 1,300 goods.

Given the party’s tight command of the media, in that place has been no outcry against Mr. Xi’s policies similar that yesteryear some American occupation concern leaders against Mr. Trump’s tariffs. It helps that no unmarried sector or share inward China stands out equally particularly vulnerable, though the aerospace manufacture could live stung in addition to Chinese automakers eyeing exports to the USA would live disrupted.

The mood at a conference inward the southern metropolis of Boao this calendar week that brought together Chinese occupation concern leaders was upbeat later Mr. Xi addressed the gathering in addition to urged “dialogue rather than confrontation.”

But speaking at the conference, Fan Gang, the manager of China’s National Economic Research Institute, warned of “systematic risk” to manufacturing provide chains. And Jack Ma, the founder of the e-commerce giant Alibaba, suggested that a merchandise state of war could destroy 10 1000000 jobs.
Three onetime Treasury secretaries are with the experts Chinese officials withdraw maintain sought advice from over the yesteryear few months. CreditPaul J. Richards/Agence France-Presse — Getty Images

One sensitive query inward Beijing is the fate of the Made inward China 2025 plan, which has been the focus of the Trump administration’s complaints. The programme would provide subsidies in addition to loans to assist Chinese firms larn unusual competitors, develop advanced technologies in addition to dominate key sectors such equally choice energy, robotics, telecom in addition to artificial intelligence.

The armed services in addition to safety apparatus, in addition to the industries to a greater extent than or less them, regard the programme equally essential to China’s strategic ambitions. But discerning the mental attitude of China’s economical policymakers is to a greater extent than difficult, in addition to non only because it would live politically taboo to dorsum away from a conception that Mr. Xi has blessed.

Premier Li Keqiang, for example, has tended to accept to a greater extent than conciliatory positions inward merchandise disputes than colleagues inward the leadership who favor asserting China’s clout equally a global power. But Mr. Li equally good leads a cluster of authorities ministers who are the main architects in addition to advocates of the Made inward China 2025 program.

They include Miao Wei, the government minister of manufacture in addition to data technology, in addition to Wang Zhigang, the government minister of scientific discipline in addition to technology. Like Mr. Li, both grew upward inward primal China’s impoverished Anhui Province in addition to favor an extensive purpose for the province inward upgrading Chinese industries, acquaintances said.

On the other hand, the policymakers closest to Mr. Xi — men with finance backgrounds including Mr. Liu in addition to Vice President Wang — are to a greater extent than interested inward seeking geopolitical parity with the USA in addition to less enthusiastic nearly industrial policy inward general.

They worry that province intervention may distort markets in addition to exacerbate the problems of China’s already debt-laden fiscal system, people who know them said.

Yet such concerns withdraw maintain non translated into a willingness to retreat on the Made inward China 2025 programme inward the seem of Mr. Trump’s threats. “I don’t intend China is willing to compromise Made inward China 2025,” said Da Wei, a professor at the University of International Relations inward Beijing. “This is the center of the competition.”

Mr. Xi has charted a moderate course of teaching so far, retaliating inward equal stair out when the Trump direction has imposed tariffs, piece urging that the dispute live resolved through negotiation.

But talks withdraw maintain stalled since Chinese officials rejected American demands that Made inward China 2025 live rolled back. H5N1 Chinese spokesman said on Th that no actual merchandise negotiations were underway.

Follow Keith Bradsher on Twitter @KeithBradsher in addition to Jane Perlez @JanePerlez.

Reporting was contributed yesteryear Jonathan Ansfield, Javier C. Hernández in addition to Steven Lee Myers from Beijing, Paul Mozur from Shanghai in addition to Alexandra Stevenson from Boao, China.
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