As China trade war escalates, 2020 U.S. Democrats scramble over their
message
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[September 09, 2019]
By James Oliphant
WASHINGTON (Reuters) - The growing economic
fallout from President Donald Trump’s drawn-out trade war with China
would appear to be a ready-made opportunity for Democratic presidential
contenders seeking to blunt his central 2020 re-election pitch: That he
has made the economy great again.
So far, it has not quite worked out that way.
While most of the 20 Democratic presidential hopefuls vying to take on
Trump in the November 2020 election have condemned his tit-for-tat
exchange of tariffs with China for hurting farmers, consumers and
businesses, they have not been of one voice on how they would handle
things differently.
That has led to a scrambled and sometimes incoherent message from
Trump's rivals even as global markets gyrate, U.S. consumer prices of
Chinese imports rise and farmers lose their biggest export market as a
result.
“It’s a little tricky,” said Jared Bernstein, who served as the top
economic adviser to Joe Biden, the Democratic front-runner, when Biden
was Barack Obama’s vice president.
![](http://archives.lincolndailynews.com/2019/Sep/09/images/ads/current/peasleymemorials_lda100213.png)
“The challenge is to distance yourself from what has been a pretty
disastrous set of policies from the Trump administration, while
signaling you are not going to be soft on China.”
The Republican president has pledged to overhaul America's trade
relationship with the world, reduce trade deficits and open up more
markets to U.S. exports. His advisers insist his projection of toughness
against China will energize, not alienate, his base.
But as China's retaliatory actions hit farming and manufacturing in
battleground states from Wisconsin and Pennsylvania to Michigan for a
second year now, Trump's China gambit looks increasingly risky going
into 2020.
For their part, Democrats in Congress have long been critical of China
and the economic and national security threat posed by the world's
second largest economy.
That has left Democratic presidential candidates struggling to
articulate their own get-tough positions without looking like they are
adopting Trump’s bulldozing ways.
The conflict with China has also exposed the same divisions within the
party between moderates and progressives.
Moderates Pete Buttigieg, the mayor of South Bend, Indiana, and former
U.S. Representative Beto O’Rourke, for example, would lift Trump’s
tariffs altogether.
Progressive U.S. Senator Bernie Sanders views tariffs as a valuable
weapon to bring China to heel, and fellow liberal U.S. Senator Elizabeth
Warren has a trade agenda that appears to be just as protectionist as
that of Trump.
The issue may arise again later this week when 10 Democrats will be on
stage for the third presidential debate in Houston.
'STOLEN THUNDER'
Regardless of ideology, most Democrats seeking their party’s
presidential nomination have been treading cautiously on China.
An August poll released by the Pew Research Center showed 60% of
Americans had a negative view of China, up from 47% in 2018, a sign that
Trump's China-bashing is having an effect.
Indeed, Trump’s insurgent 2016 campaign was powered in part by animus
toward China and pledges to confront the Asian power. Trump exposed raw
feelings about globalisation and free trade held by many voters who
witnessed U.S. factory jobs vanish and local economies stagnate.
![](http://archives.lincolndailynews.com/2016/Aug/26/images/ads/current/ldn_business_directory_small2_2016.png)
In doing so, he co-opted a position long held by progressives such as
Sanders and Warren that globalisation had benefited multinational
corporations at the expense of U.S. workers.
“Trump stole everybody’s thunder on the issue,” Bernstein said.
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![](../images/090919pics/news_n29.jpg)
Former Vice President Joe Biden speaks on the second night of the
second 2020 Democratic U.S. presidential debate in Detroit,
Michigan, July 31, 2019. REUTERS/Lucas Jackson/File Photo
![](../images/ads/current/fitzpatrick_lda_SPONSOR_2017.png)
Warren’s recently released trade plan is not centered on tariffs.
But as president, she would not support any trade deal with a nation
that did not meet a host of environmental, labor and human rights
criteria, a set of standards the United States itself does not yet
meet and would likely exclude developing nations.
“There is no doubt the public is ready for an anti-China message.
But it has to be a smart, strategic message,” said Scott Lincicome,
a trade policy expert at the CATO Institute, which supports free
trade. Otherwise, he said: “They are ceding the turf to Trump.”
In that regard, it has not been easy for Democrats to establish
their separate identities. “The Sanders-Warren message on trade at
the Joe Voter level is indistinguishable from Trump’s,” Lincicome
said.
FINE LINE
Biden is one candidate who has attempted to navigate a fine line,
and he is viewed by U.S. business concerns as perhaps the best hope
for a “reset” to the pre-Trump status quo.
But the former vice president has been on the defensive on the
subject since early in the year, when his dismissal of China's
economic threat triggered criticism from Trump and Sanders, among
others.
Biden has since vowed to marshal U.S. allies to put pressure on
China to curb its anti-competitive practices, and expressed sympathy
for U.S. farmers who have lost China as a customer.
But he has not said whether he would lift all of Trump’s tariffs,
and his campaign would not address the question with Reuters.
A spokesman for his campaign said only that Biden would “start
getting tough and smart on China without throwing backbone American
industries like agriculture and manufacturing under the bus.”
The Trump campaign has long believed Biden is vulnerable on trade
because of his vote in favor of the 1994 North American Free Trade
Agreement and his support of normalized trade relations with China
as a U.S. senator.
As vice president, he also championed the Trans-Pacific Partnership,
a multi-nation Pacific Rim trade deal that was designed to rein in
China by bolstering other trading partners in the region but was
opposed by progressives and labor unions at home. Trump pulled the
United States out of the TPP after taking office in 2017.
![](http://archives.lincolndailynews.com/2019/Sep/09/images/ads/current/graue_19TRAX_082619.png)
Biden has said he would support a renegotiated TPP, but would not
rejoin it as it stands. He has also said he would not support
Trump’s U.S.-Mexico-Canada trade pact that would replace NAFTA,
unless changes are made to its labor and environmental provisions,
among others.
Tony Fratto, a top official at the U.S. Treasury Department under
Republican President George W. Bush, said Biden should take
advantage of polling that shows most Americans favor free-trade
agreements.
A July poll from Pew found 65% of Americans now favored free-trade
pacts with other nations.
Biden could chart a course different from both Trump and Democratic
liberals and appeal in the process to suburban voters who are more
likely to support global trade and yearn for international
stability, Fratto said.
“There are more suburban voters than union voters,” he said. “Biden
has a natural opportunity.”
(Reporting by James Oliphant; Editing by Soyoung Kim and Peter
Cooney)
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