By Bob Davis, Kate O'Keeffe and Lingling Wei
WASHINGTON -- Since President Trump was inaugurated, many
members of his national security team have been itching to confront
a China they view as the greatest threat to the U.S.
For three years their biggest roadblock, say current and former
officials, has been a president who didn't share their views and
whose highest priority was negotiating a trade deal with
Beijing.
"The National Security Council said, 'Give us your wish list of
ways to f -- with China,' " said one former national security
official, recalling the early days of the administration.
Proposals, ranging from stronger relations with Taiwan -- which
Beijing considers to be a breakaway province -- to halting the
global advance of Chinese telecommunications companies, saw little
meaningful action.
No longer. Since March, Mr. Trump has approved a head-spinning
series of actions to confront China. The U.S. has dispatched
aircraft carriers to the South China Sea, blocked China's tech
companies from getting advanced technology, increased arms sales to
Taiwan, closed China's Houston consulate over alleged espionage and
sought to ban popular Chinese apps from the U.S. market.
Further moves are being considered, according to officials:
monitoring Chinese state airlines' employees suspected of
supporting espionage in the U.S., going after alleged Chinese
government-backed efforts to influence U.S. politics and business,
and blacklisting more Chinese technology firms.
Three big changes account for the administration's shift,
according to the current and former officials in Washington:
-- After a limited trade deal with Beijing was secured in
January, Mr. Trump's political calculations changed and he now sees
a tougher China policy as good for his reelection campaign.
-- Different and harder-line China advisers to the president
came to prominence this year after the coronavirus pandemic emerged
out of China.
-- The Chinese government's assertive actions in Hong Kong and
elsewhere incensed administration officials and Congress.
"The Chinese Communist Party really needs to think clearly about
how individuals around the world will view their behavior," said
Secretary of State Mike Pompeo, who has become Mr. Trump's leading
adviser on China.
The new offensive has pushed relations between the two countries
to their lowest point in decades, spooked investors and, according
to Chinese officials and government advisers, confounded China's
leaders. After years when the administration emphasized the
personal relationship between Mr. Trump and Chinese leader Xi
Jinping, U.S. officials now speak openly of Chinese leaders as
heirs of Stalin who are engaged in a battle for global
supremacy.
So far, China's officials have kept their responses to the U.S.
actions proportionate, for instance closing the U.S. Consulate in
Chengdu when the Chinese Consulate in Houston was shut.
The confrontation is unlikely to de-escalate, no matter who wins
the presidential election. Mr. Trump has campaigned on acting tough
with China. Advisers to Democratic candidate Joe Biden say they
share the Trump administration's analysis of China's
aggressiveness.
Taiwan looms as a flashpoint, as does the continuing battle over
cutting-edge technologies.
In the first years of his administration, Mr. Trump often used
disruptive, sharp-elbowed tactics in pursuit of his trade deal,
ratcheting up tariffs for example. He also praised Mr. Xi and, the
current and former officials say, played down China's threats on
Hong Kong and human-rights problems to keep them from getting in
the way of negotiations.
Mr. Trump's senior advisers say there wasn't a specific meeting
that made it clear he was going on the offensive. Rather his
dissatisfaction mounted in the spring as the new coronavirus spread
from China to the U.S., killing Americans, wrecking the economy and
threatening his reelection, current and former officials say. He
turned from commending China for mitigating the outbreak to blaming
it for its spread, as his administration faced criticism for its
handling of the pandemic. Chinese Foreign Ministry spokesman Zhao
Lijian's tweet in March of an unsubstantiated theory that U.S.
soldiers may have brought the coronavirus to China enraged Trump
more than anything else, said an administration official.
"It's been an evolution," said Commerce Secretary Wilbur Ross.
"There isn't one sort of big bang."
Senior advisers pitched ideas to take on China in ways that
would resonate with Mr. Trump, officials said. Hard-liners argued
that a ban on the Chinese social media platforms TikTok and WeChat
was justified not only because the data they collect on American
users could be used by Beijing for spying, but also because
Facebook, Twitter and many other U.S. internet companies can't
operate in China. The U.S. was addressing issues of fairness or
reciprocity in a relationship they see as favoring Beijing for too
long, they said.
That view hit home with Mr. Trump, who calls reciprocity "the R
word" in China meetings.
Mr. Trump also began leaning more on his national security
advisers than his economic ones.
White House officials long talked of two different camps on
China during the trade negotiations. "Globalists" such as Treasury
Secretary Steven Mnuchin urged a quick settlement of the trade
fight. "Nationalists" such as Trade Representative Robert
Lighthizer and White House trade adviser Peter Navarro wanted to
batter China with tariffs.
After the trade accord, the lineup changed. Mr. Lighthizer
allied with Mr. Mnuchin to preserve the deal and had limited sway
on national security. "There's a defense lane. There's a broader
security lane. There's a cyber lane," Mr. Lighthizer told a think
tank audience in July. "If I try to get in all of those lanes then
I'm just going to get run over."
Others -- who call themselves "decouplers" or "hard-liners" --
want to punish China even if that puts the trade pact at risk.
Their ranks include Mr. Pompeo, deputy national security adviser
Matt Pottinger, Attorney General William Barr, Mr. Navarro and Mr.
Ross, who once worked with the Treasury secretary to get a quick
trade deal.
In recent months, the Commerce Department announced rules
barring semiconductor firms anywhere in the world from selling
equipment containing U.S. technology to Chinese telecommunications
giant Huawei Technologies Co. When chip firms looking for ways to
continue supplying Huawei pointed out loopholes, Commerce tightened
the rules further.
An interagency group rejected a plan by Mr. Mnuchin to
fast-track sales of older technology to the company. Mr. Mnuchin
declined to comment to the Journal about the rejection. Commerce
also put 150 affiliates of Huawei on an export blacklist -- now
accounting for half of all the Chinese firms on the list.
Administration hard-liners say they see little reason today to
court Beijing. In May, Mr. Xi discarded China's policy of treating
Hong Kong differently from the rest of China despite an earlier
agreement with Britain, the city's former colonial ruler, to
guarantee a high degree of autonomy for the city.
For Mr. Pompeo and others, the move crystallized why Chinese
leaders couldn't be trusted. "It was such a blatant example of the
Chinese Communist Party once again breaking a core promise that it
had made," Mr. Pompeo said.
For Mr. Xi, the potential blowback was worth the risk. Asserting
control over the restive population, which had staged large
antigovernment protests since mid-2019, was a priority.
After Beijing clamped down, the Trump administration started to
put sanctions on Chinese officials over Hong Kong and Xinjiang,
China's northwest region, where authorities have been putting
members of the Uighur population and other largely Muslim ethnic
groups into detention centers.
The administration also launched the battery of actions from
closing down the Houston consulate -- alleging it was a "den of
spies" -- to conducting large naval exercises in the South China
Sea.
Chinese officials defend Beijing's actions in Hong Kong,
Xinjiang and the South China Sea as matters of sovereignty not to
be interfered with by foreigners, and say that its diplomatic
missions aren't engaged in espionage. Overall, Beijing says that
China isn't trying to supplant the U.S. in the world order, but
deserves a say in global affairs.
In elite circles in Beijing, some question privately whether Mr.
Xi pushed the U.S. too hard.
"Exactly how many battles would China want to fight all at once?
That's something we need to think through very carefully," said a
Chinese foreign-policy expert who advises the government.
There are limits to the administration's offensive, particularly
on actions that could rock the global economy or hurt Mr. Trump's
re-election prospects.
The White House quickly scotched proposals to delink the U.S.
dollar from the Hong Kong dollar or cut off a big Chinese bank from
the international monetary system.
During a meeting in the late summer, Mr. Trump rejected using
the dollar as a weapon, said Larry Kudlow, a White House economic
adviser. "He was persuaded that we don't want to take any actions
that would significantly lower the demand for dollars in Greater
China and Asia, or reduce the usefulness of the dollar," Mr. Kudlow
said.
A proposed ban on imports of cotton from Xinjiang was watered
down after officials at the Treasury and Agriculture departments
and the trade representative's office warned it would damage
American apparel makers and other importers.
Administration hard-liners also sparred with other officials
over TikTok, the Chinese social-media sensation. After the
president said he would ban the short-video app, TikTok lobbyists
warned the Trump campaign that it is popular with teens, including
many of voting age who live in battleground states.
Mr. Mnuchin played a role in getting Mr. Trump to back down and
instead approve a deal in which Oracle Corp. and Walmart Inc. would
take stakes in a restructured TikTok based in the U.S. The deal is
undergoing a security review.
Taiwan is a deepening area of confrontation. During his first
three years in office, Mr. Trump had little interest in the island,
say national security officials. After Hong Kong, Mr. Pompeo argued
Taiwan could be Beijing's next target. China sees Taiwan as lost
territory to be recovered, and Beijing has objected to U.S. moves
it sees as bolstering Taiwan's resistance and reneging on a pledge
to recognize only "one China."
Since August, Mr. Trump approved a rare cabinet-level visit to
Taiwan, sending Health and Human Services Secretary Alex Azar, and
the two governments have opened a "bilateral economic dialogue" --
something short of formal trade negotiations.
The U.S. also went ahead with sales of cruise missiles, mines
and drones to Taiwan, which would be needed to repel any possible
attack from China. Beijing flew 18 warplanes across the midline of
the narrow waters that separate the mainland and Taiwan, in what
Taiwan officials saw as an attempt at intimidation.
Former national security adviser John Bolton, who had long urged
tighter relations with Taiwan but made little headway, said he sees
greater appetite to challenge China in the new approach: "The
bureaucratic dynamic changed," he said. "The opposition has
faded."
Write to Bob Davis at bob.davis@wsj.com, Kate O'Keeffe at
kathryn.okeeffe@wsj.com and Lingling Wei at
lingling.wei@wsj.com
(END) Dow Jones Newswires
October 16, 2020 13:05 ET (17:05 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.