Trump railed against China on the campaign trail, bellowing that it was "raping" the United States. He vowed to label it a currency manipulator on his first day in office. But in his first interaction with Beijing, he caved. Weeks after his election, Trump speculated that he might upgrade relations with Taiwan. In response, Xi froze all contacts between Beijing and Washington on all issues, demanding that Trump reverse himself — which is exactly what happened. (Perhaps just coincidentally, a few weeks later, the Chinese government granted the Trump Organization dozens of trademark rights in China, with a speed and on a scale that surprised many experts.)
The Trump administration's vision for disengagement from the world is a godsend for China. Look at Trump's proposed budget, which would cut spending on "soft power" — diplomacy, foreign aid, international organizations — by 28 percent. Beijing, by contrast, has quadrupled the budget of its foreign ministry in the past decade. And that doesn't include its massive spending on aid and development across Asia and Africa. Just tallying some of Beijing's key development commitments, George Washington University's David Shambaugh estimates the total at $1.4 trillion, compared with the Marshall Plan, which in today's dollars would cost about $100 billion.
China’s growing diplomatic strength matters. An Asian head of government recently told me that at every regional conference, “Washington sends a couple of diplomats, whereas Beijing sends dozens. The Chinese are there at every committee meeting, and you are not.” The result, he said, is that Beijing is increasingly setting the Asian agenda.
The Trump administration wants to skimp on U.S. funding for the United Nations. This is music to Chinese ears. Beijing has been trying to gain influence in the global body for years. It has increased its funding for the U.N. across the board and would likely be delighted to pick up the slack as the United States withdraws. As Foreign Policy magazine's Colum Lynch observes, China has already become the second-largest funder of U.N. peacekeeping and has more peacekeepers than the other four permanent Security Council members combined. Of course, in return for this, China will gain increased influence, from key appointments to shifts in policy throughout the U.N. system.
The first major act of the Trump administration was to pull the United States out of the Trans-Pacific Partnership, a treaty that would have opened up long-closed economies such as Japan and Vietnam, but also would have created a bloc that could stand up to China's increasing domination of trade in Asia. The TPP was, in Singaporean Prime Minister Lee Hsien Loong's words, "a litmus test" of U.S. credibility in Asia. With Washington's withdrawal, even staunchly pro-American allies such as Australia are hedging their bets. Australian Prime Minister Malcolm Turnbull has raised the possibility of China joining the TPP, essentially turning a group that was meant to be a deterrent against China into one more arm of Chinese influence.
The United States' global role has always meant being at the cutting edge in science, education and culture. Here again, Washington is scaling back while Beijing is ramping up. In Trump's proposed budget, the National Institutes of Health, NASA and the national laboratories face crippling cuts, as do many exchange programs that have brought generations of young leaders to be trained in the United States and exposed to American values. Beijing, meanwhile, has continued to expand "Confucius Institutes" around the world and now offers 20,000 scholarships for foreign students to go to China. Its funding for big science rises every year. The world's largest telescope is in China, not the United States.
The Trump administration does want a bigger military. But that has never been how China has sought to compete with U.S. power. Chinese leaders have pointed out to me that this was the Soviet strategy during the Cold War, one that failed miserably. The implication was: Let Washington waste resources on the Pentagon, while Beijing would focus on economics, technology and soft power.
Trump's new national security adviser, H.R. McMaster, once remarked that trying to fight the United States symmetrically — tank for tank — was "stupid." The smart strategy would be an asymmetrical one. The Chinese seem to understand this.
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