Having covered Chinese leaders since the days of Deng Xiaoping, the line of analysis I find most interesting about the meeting in Bali is that Xi Jinping wanted to buy a little more time in China’s relations with the United States. Nothing has changed in his ideology or his ambitions–he is still an authoritarian dictator and he still believes that the Chinese version of Marxism-Leninism-Socialism is destined to defeat America’s model of democracy and world leadership.
The reason for the slight pause is that the Chinese have concluded that the strength of the American reaction that is developing against China is so strong that it could prove disruptive to China’s interests. Consider that Biden has launched an all-out effort to stymie China’s access to advanced semiconductor technology while spending billions on developing the industry on U.S. soil. Consider how the United States has persuaded allies in NATO and elsewhere to supply Ukraine and absolutely humiliate Vladimir Putin, Xi’s best pal. Consider the fact that American CEOs are starting to move some of their production and supply base out of China after witnessing massive Covid-related lockdowns and Xi’s reckless display of military force around Taiwan after Nancy Pelosi’s visit in August. This line from the the Chinese description of the meeting absolutely cracks me up: The Chinese said policies meant to redirect American supply chains away from China “completely violate the principles of market economy (sic) and undermine the rules of international trade.” First, Xi does not believe in the market economy. He has competely wiped out the private sector in China by subjecting it to the whims of his Communist Party. So much for China’s “market economy.”
And it is PRECISELY because of the rules of international trade that CEOs are pausing on new investments in China and trying to extricate themselves from Xi’s grip. CEOs go to places where they can make money, not kowtow to Communist emperors.
Moreover, Xi flat-out lied in his public remarks. This is not considered bad in Chinese culture. If I tell you something that is not true and you believe it, you’re stupid. There is no moral connotation to speaking what we regard as mistruths. Xi was quoted as saying, “China has never sought to alter the current international order (WRONG), does not meddle in American domestic policies (WRONG) and has no intention of challenging and replacing the United States. (WRONG)” These statements fly in the face of what he has said publicly in Chinese inside China.
So as Biden said, it’s not time to start singing Kumbayah. It’s time to continue taking steps to solidify the American economy and America’s role in the world, as co-author Michael McLaughlin and I argue in Battlefield Cyber: How China and Russia are Undermining Our Democracy and National Security. Pre-order it here.