Latest / China Considered / Rivalry Redefined: US-China Strategy in a Shifting World with Matthew Turpin
Transcript
- 0:00[MUSIC]
- 0:08>> Elizabeth Economy: Welcome to China Considered, a podcast that brings fresh
- 0:11insights and informed discussion to one of the most consequential issues of our time,
- 0:15how China's changing and changing the world.
- 0:18I'm Liz Economy, Hargrove Senior Fellow and co director of the U.S.
- 0:21China and the World Program at the Hoover Institution at Stanford University.
- 0:26Today I have with me, Matt Turpin.
- 0:28Matt is currently a senior advisor at Palantir and a visiting fellow at Hoover,
- 0:32where he produces one of the best substacks on China that you will
- 0:35find China articles.
- 0:36But he spent most of his career in service of our country, first in the U.S.
- 0:40army and then in a number of senior positions at the Pentagon,
- 0:42followed by the Commerce Department and National Security Council.
- 0:45Matt, it's great to have you with us.
- 0:47>> Matthew Turpin: Well, Liz, it's a real pleasure to be here.
- 0:50Thank you.
- 0:51>> Elizabeth Economy: So, Matt, I want to take you back to the beginning,
- 0:54you graduated from West Point in the mid-1990s.
- 0:57It was a time in the US China relationship that was relatively good until it wasn't.
- 1:03Secretary of Defense Bill Perry was all about opening up mill to
- 1:07mill relations at the time.
- 1:09I think there was a lot of positive energy in the relationship.
- 1:12And then, boom, we had the Taiwan Strait Crisis, 95, 96,
- 1:17where China was lopping missiles, you know,
- 1:20into the Taiwan Strait, trying to deter the Taiwanese and
- 1:24meddle in their first ever actually directly elected presidential election.
- 1:31So how did all of that influence your thinking?
- 1:34So when you came out of West Point, what was your orientation on China?
- 1:40>> Matthew Turpin: So, to be honest, it was absolutely zero orientation on China.
- 1:45I came out of the academy having been a European history major.
- 1:52I had no conception that I'd really spend time thinking about things
- 1:57at the sort of strategic level.
- 1:59I was focused on being an armor second lieutenant.
- 2:03And I went out to Fort Irwin, California,
- 2:07where I played laser tag on tanks for almost four years.
- 2:13So from like January of 1996 through 19, you know,
- 2:17the end of 1999, yeah, I was focused on doing war games for
- 2:22the US army at the very tactical level.
- 2:26I lived outside on a tank in the desert two weeks out of every month for
- 2:30nearly four years.
- 2:31I had almost no conception of what was happening in the broader world.
- 2:36I felt very, you know, very focused on what I was doing then and there.
- 2:41And it just kind of goes to show that you're, you know,
- 2:44like folks that are in the army really oftentimes are not really tracking what's
- 2:48happening at the geopolitical level.
- 2:50You're really focused on the day to day of how do you have Your
- 2:54units well trained and focus on sort of learning your job.
- 2:58>> Elizabeth Economy: And so even, even at West Point itself,
- 3:00there wasn't a kind of education around one of the major emerging great powers
- 3:05of our time that sort of shaped.
- 3:07>> Matthew Turpin: Yeah, it would have been nice.
- 3:10I didn't, I am absolutely, we certainly had folks that took Chinese.
- 3:14I did not take Chinese.
- 3:16You know, I, I originally took, took Arabic because if you'll remember,
- 3:21I, I, I, I came to west point in, in 1991.
- 3:25And so if you're, like, looking at the world,
- 3:28then Arabic seems like a really interesting language to learn.
- 3:32I did really poorly at Arabic, and my advisors and
- 3:35counselors at West Point advised that I move back to a more simple language.
- 3:40And so I took French.
- 3:41>> Elizabeth Economy: Like English?
- 3:42>> [LAUGH] >> Matthew Turpin: Well, and
- 3:44English as well.
- 3:46And I often joke that, you know,
- 3:48I graduated in the top 5% of the bottom half of my class.
- 3:52>> Elizabeth Economy: There you go.
- 3:53>> Matthew Turpin: And so I was not particularly focused on the academic side
- 3:57of this.
- 3:57And to be perfectly honest, I was, I was, yeah,
- 4:00I felt that I was a European history major.
- 4:03I spent a lot of time thinking about sort of the history and
- 4:06politics of Europe in the 19th and 20th centuries,
- 4:09that's what I spent my time sort of working on from an academic perspective.
- 4:14I ended up going back to graduate school after my time as
- 4:18a lieutenant as a captain.
- 4:21I focused on American history at UNC Chapel Hill.
- 4:26I went back to West Point and taught in the history department.
- 4:29So I sort of did all of that through about 2006 before I went back out to the Army.
- 4:35And I didn't actually start really working on China or even Asia issues
- 4:41until I chose to take an assignment at Pacific Command in Hawaii in 2010.
- 4:48So up until that point, I mean, to be perfectly honest,
- 4:52my focus was on other parts of the world and was really focused on my sort
- 4:56of career as an army officer and how to lead America's sons and
- 5:01daughters at a variety of different places around the world.
- 5:06And so China was always in the back of my mind, but
- 5:08it was not particularly forefront, at least for me.
- 5:12And so when I moved to Indo Paycom, essentially,
- 5:15that was the same time that you have Secretary of State Hillary Clinton,
- 5:19you know, writing a piece in Foreign affairs about a pivot to Asia.
- 5:24And so it, it was opportune, but it was not planned by me.
- 5:27I only picked Hawaii because it seemed like a much better assignment than
- 5:31the other ones that were available.
- 5:33>> Elizabeth Economy: Right, right.
- 5:34And it turned out to be prescient.
- 5:36But I take.
- 5:38>> Matthew Turpin: Yeah, not an effort by me.
- 5:40But purely by chance.
- 5:42>> Elizabeth Economy: It was serendipitous.
- 5:43>> Matthew Turpin: Serendipitous, yeah.
- 5:44>> Elizabeth Economy: Okay, so you land in Hawaii.
- 5:45Let's just spend another minute on this because I really am interested in,
- 5:50in how if, if all that time, you know, was spent not thinking about China.
- 5:54Surely you get to Indopacom and China is present.
- 5:58>> Matthew Turpin: Yep.
- 5:59>> Elizabeth Economy: How are you thinking about it then?
- 6:01What is, what is that sort of you know, >> Matthew Turpin: I mean, so, so
- 6:04obviously as a, as a sort.
- 6:06I was a military officer at Pacific Command.
- 6:08My job is primarily be sort of a, I was, my title was as a crisis action planner.
- 6:15My job was to plan for those kinds of things that would be considered crises for
- 6:21at the time, Pacific Command, which is obviously now called Indo Pacific Command.
- 6:27But my job was primarily to provide for
- 6:29both the rear admiral that was the operations officer, but
- 6:34also the commander, the four star admiral that commands Pacific Command.
- 6:39My job was to be essentially the person that plans for how to respond to crises.
- 6:45And so a number of those things like the sinking of the Chonan by
- 6:48the North Koreans.
- 6:51I helped plan the entire sort of US Military response for
- 6:55the earthquake, tsunami and nuclear accident in Japan.
- 7:00I spent quite a bit of time on North Korean interdiction planning,
- 7:05but also about the kinds of things we were seeing,
- 7:08whether it was actions against Japan and the Senkakus by China.
- 7:13>> Elizabeth Economy: Yeah. >> Matthew Turpin: Or
- 7:13the other things that we were watching China begin to do during those years.
- 7:17I then to get a sort of a broad appreciation of what was happening and
- 7:21really got introduced to sort of the national level.
- 7:24So as a, as a planner at Pacific Command, I began to interact with my counterparts
- 7:29in the State Department, you know, at the Office of the Secretary of Defense,
- 7:33you know, the Treasury Department and other places.
- 7:37As we started to see sort of like the holistic picture of what
- 7:41our relationship was.
- 7:43But I was looking at it through the lens of sort of what is
- 7:47the US Military's role in that relationship.
- 7:50And so I got to see both the sort of the cooperation that we were doing,
- 7:54sort of the mill to mill cooperation, but also got to see all the planning and
- 7:59other things that we were.
- 8:01That we had to do to prepare for sort of worst case scenarios.
- 8:04Because obviously for Pacific Command,
- 8:06the third Taiwan trade crisis was not that far removed from their memories.
- 8:11Right. For many of those, you know,
- 8:13many of the folks that served in that command, you know,
- 8:16Certainly they remember 1995, 1996, and could see that those are things that could
- 8:22pop up again as well as the EP3 crisis that had happened in, in April of 2001.
- 8:27Those were all very real things for that command.
- 8:30And I got exposed to it really for the first time as someone who had been
- 8:33serving in Europe and the Middle east before that.
- 8:36>> Elizabeth Economy: Right, and
- 8:37it would seem that sort of always dealing with crises, right?
- 8:41You're always trying to think ahead about what could emerge that would be bad.
- 8:44That also would give you some sort of a certain kind of lens.
- 8:48But as you say, you also had some engagement element and
- 8:51sort of the mill to mill relationship and helping that know, develop.
- 8:56So you mentioned the pivot and Hillary Clinton and the pivot to Asia,
- 9:00I think was an important inflection point in US Policy toward China.
- 9:05Really.
- 9:06It was a recognition that Asia mattered and we weren't spending enough time in
- 9:09the fastest growing, you know, most dynamic part of the world.
- 9:12But it was also, I think, you know, there was an element of it that was clearly
- 9:17designed to ensure that, you know, we remained present and, you know,
- 9:21China didn't somehow become the dominant power in the region,
- 9:24which it looked like it was increasingly interested in doing.
- 9:28So looking, you are one of the few people I know that actually had quite
- 9:33senior positions in both the Obama and Trump administrations.
- 9:38If you were to look back to those two administrations and say,
- 9:42now what would you take away from either on the positive side or the negative side,
- 9:48either operationally or substantively from those administrations that
- 9:52you would like to bring forward to the current administration?
- 9:57What should they like, take away from history,
- 10:00as you are an historian from the recent history, what would be most important,
- 10:04do you think, for them to be thinking about?
- 10:06>> Matthew Turpin: Yeah, yeah, so I mean, little context.
- 10:09So I went from that time out at Pacific Command, which, I'm a relatively junior to
- 10:14mid level officer, but I then moved back to the Pentagon right after that and
- 10:18essentially take over a position on the Joint Staff that that sort of runs
- 10:22China's strategy for the Joint Staff, for the chairman and the Vice Chairman.
- 10:27And then working for Deputy Secretary Bob Work and others on defense innovation.
- 10:32And defense innovation is obviously also directed at the fact that you have
- 10:35a technologically advanced China that is beginning to challenge US in a number of
- 10:39different domains.
- 10:40And so that, that whole process.
- 10:42And so I got to see for sort of the second term of the Obama administration
- 10:47from the Pentagon working with the National Security Council and that team.
- 10:53I got to see how at a national level, we were beginning to wrestle with that.
- 10:57And so I saw that entire sort of second half, the Obama administration, and
- 11:01then went into the Trump administration and really helped run those sets of
- 11:06policies from the National Security Council around China.
- 11:09And I guess my big takeaway is that from a sort of a policy wise,
- 11:15we had had a strategy of how we wanted to deal with Beijing.
- 11:21You know, we had had that strategy sort of in place, at least in my opinion,
- 11:26from sort of like May of 1994, when President Clinton's speech,
- 11:31I think it did at, at John Hopkins sort of announces sort of a, an idea that we're
- 11:36going to pursue a policy of economic helping the Chinese economy develop.
- 11:42And the expectation is we'll see sort of economic and
- 11:45political liberalization over time.
- 11:47That was sort of our approach.
- 11:49And so our economic departments and agencies had, I think, a very clear
- 11:53mandate from that point in time through the Clinton administration, the George W.
- 11:58Bush administration,
- 11:59the Obama administration clear mandate to help the Chinese economy develop,
- 12:04become more enmeshed and, and, and bind it to the international system.
- 12:09And the Department of Defense and
- 12:11the intelligence community had a job to hedge against risk, right.
- 12:14That fundamentally there was an understanding that,
- 12:17that obviously things might not go right and there could be real tensions and
- 12:20dangers inside the relationship.
- 12:22And so the Defense Department and the intelligence community and
- 12:26the State Department are directed to, to hedge against that risk.
- 12:29Right. And so that,
- 12:30that sort of balanced approach.
- 12:33But by the end of the Obama administration, and
- 12:36then as the Trump administration comes in, a realization that we're not seeing.
- 12:41I mean, certainly our strategy around helping the Chinese economy develop had
- 12:45worked extremely well, right?
- 12:47But we were not seeing the kinds of liberalizations.
- 12:50In fact, we're seeing the backsliding.
- 12:53This is four years into.
- 12:57So the last year of the Obama administration is essentially three or
- 13:01four years into Xi Jinping's rule.
- 13:03And we're beginning to see, I think,
- 13:05a very clear outline of the kind of ruler that Xi Jinping would be.
- 13:09And it's not the liberalizing reformer that that many of us, I think,
- 13:13had hoped, right, that we'd had an expectation to see.
- 13:17And what we see is a really a deep backsliding, and
- 13:21sort of refusal to carry out the kinds of changes that somebody
- 13:26like Robert Zoellick had announced and sort of laid out in his
- 13:31responsible stakeholder speech back in 2005, right?
- 13:36So you have this.
- 13:37This on this, I think, a deep realization inside the Obama administration
- 13:40that things are not heading in the right direction.
- 13:43We're going to have to start to recalibrate.
- 13:46And then when the Trump administration comes in,
- 13:48there's an agreement with that and an implementation of a strategy that had its
- 13:53roots in the Obama administration and was likely to be the kind of strategy that.
- 13:58That.
- 13:59That President Clinton would have put in place.
- 14:01Right. This is.
- 14:02And her people, >> Elizabeth Economy: Parts
- 14:03of it, I think.
- 14:03>> Matthew Turpin: Yeah, people like Kurt Campbell and Jake Sullivan and and
- 14:07Laura Rosenberger.
- 14:08All of those folks would have been in those positions.
- 14:11>> Elizabeth Economy: Right.
- 14:12>> Matthew Turpin: And it ends up being that.
- 14:13That the Trump administration implements a more, you know,
- 14:17a competitive strategy, one of viewing Beijing as a rival and a competitor,
- 14:22not as a partner, and that's that shift.
- 14:26My opinion is that, you know, when it became clear, I think,
- 14:31across the U.S. government that, that that was the case, really by the end of 2015,
- 14:36the US government moved relatively quickly in changing its strategy.
- 14:40Right. Certainly by the end of 2017,
- 14:43you have a national security strategy that very clearly lays out that we view
- 14:47China as a competitor and therefore we should treat them that way.
- 14:51And that, I think, has gone on.
- 14:53I mean, so that's within the China sort of watching community that has remained
- 14:58up for debate, but I think within the broader sort of policy community,
- 15:03that became fairly clear early on.
- 15:05And then the problem is, then how do you implement that?
- 15:08And I think that's what both the Trump administration and
- 15:12then the Biden administration really had, you know, challenges of not dealing,
- 15:16you know, not only the.
- 15:18So I think the national security side, the defense side,
- 15:21understood their job was to continue to hedge against risk.
- 15:25But really the economic departments and agencies,
- 15:28really tough time adjusting to a shift from helping the Chinese economy
- 15:32develop to one that is not helping them, right?
- 15:35And that. That's been a difficult transition,
- 15:38I think, for, for folks on the economic side and
- 15:40then all the constituencies that fall underneath that.
- 15:44>> Elizabeth Economy: Yeah. I mean,
- 15:44I might take a little bit of issue with that.
- 15:46Having served in the Commerce Department during the Biden administration for
- 15:51a few years, I think it wasn't that the administration was looking to
- 15:55help the Chinese economy develop anymore.
- 15:58It was, how do we balance our economic and our security interests or
- 16:02how do we integrate them most effectively?
- 16:05Where do we draw the line around what constitutes national security?
- 16:09Or you know, is Starbucks, is it okay for Starbucks to sell lattes and
- 16:13Nike to sell sneakers?
- 16:14And so I okay for- >> Matthew Turpin: India to sell
- 16:16chips, right?
- 16:17I mean, all those, those debates, those.
- 16:19>> Elizabeth Economy: Are, those are the, those are the big debates.
- 16:21But I guess what I'm asking you is with all of that history right behind us now,
- 16:26is there something in particular that you think the trumpet,
- 16:30this Trump 2 administration should be maybe taking away that it isn't?
- 16:36>> Matthew Turpin: Yeah, I mean, I felt that the sort of,
- 16:38the most important thing, the thing like sort of the starting point is you had
- 16:43to be have a declaratory policy that could allow for those sorts of shifts to happen.
- 16:49And, and you know, we've now, I think had that, you know,
- 16:53we had that from the early portion of the Trump administration.
- 16:56It was very clear that the Biden administration came in and
- 16:59had a declaratory policy that, that it would,
- 17:01that would see Beijing as a competitor, as a rival and they would treat it as such.
- 17:05And, and so those, that's extremely necessary because it sets the baseline
- 17:10then for departments and agencies to figure out how and
- 17:12what they're supposed to do on a day to day basis.
- 17:15Right. If you don't have that,
- 17:17those discussions that, that you just discussed.
- 17:20Yeah, obviously, the Trump administration had those same challenges internally of
- 17:24trying to figure out where the right balance is.
- 17:26But without that declaratory policy to start with, really hard to get that sort
- 17:30of moving because then you sort of re litigate whether or
- 17:33not they're a competitor or not, right?
- 17:36And so that's where you sort of find yourself,
- 17:38I think from a policy side, it's a really tough thing.
- 17:41And so for the Trump administration,
- 17:43I think they need to be able to continue to press that forward, have a clear
- 17:47understanding of what they're trying to do, and then enable departments and
- 17:51agencies to come up with those things that fit with the overall policy.
- 17:54Rather than a sort of a micromanagement of what it is, but
- 17:57allow those departments and agencies to use their authorities to figure out how
- 18:02best they accomplish those goals.
- 18:04And I think we see some of that going on within the departments and agencies now.
- 18:10You know, both the America first trade policy and the America first investment
- 18:14policy have laid out some clear guidelines of what departments and
- 18:18agencies are supposed to do to come back with things for
- 18:21the administration to be able to execute on.
- 18:24>> Elizabeth Economy: Right. So I guess to that end we'll see more
- 18:27perhaps of A coherent and cohesive strategy after April 1st,
- 18:30I think is the date they're supposed to come back with that.
- 18:34But, but one of the things that I really admired in your substack,
- 18:40which, as I said, is really, I think one of the best out there,
- 18:45is that you are neither a Trump critic or a Trump supporter.
- 18:51I think you have become, in my mind, a little bit of the explainer in chief.
- 18:55Because I think for those of us on the outside,
- 18:59it's often difficult to make sense of where the administration might be going.
- 19:05You know, what we've seen, I think,
- 19:08of China policy to date has been primarily through the lens of tariffs.
- 19:12So the first one set of tariffs in February, another set of tariffs in March.
- 19:19But you make the case, and I think quite convincingly in one of your recent pieces,
- 19:26that of course, President Trump wants a deal and that is what he's driving toward.
- 19:32And then the question I think becomes, well,
- 19:35what are the parameters of that deal?
- 19:37What do you think that deal actually looks like?
- 19:40What are we looking for?
- 19:42What do the Chinese want?
- 19:43Where could we meet in the middle?
- 19:46How does that happen?
- 19:47So maybe you could lay out a little bit of, of that,
- 19:52because I do think that, I think you have a,
- 19:56a really important perspective that brings some coherence to, I think,
- 20:02what is for most of us, just a completely incoherent policy now.
- 20:08>> Matthew Turpin: Yeah, I mean, obviously, I don't speak for
- 20:10the administration.
- 20:11I mean, >> Elizabeth Economy: Of course, and
- 20:12that's why I said at the outset, you are not, you, you come across as neither
- 20:16a defender, supporter, >> Matthew Turpin: Nor a cheerleader.
- 20:18Right. I mean, I'm trying to,
- 20:20I'm trying to lay out exactly happening and then we can make judgments about,
- 20:24you know, success or failure and those sorts of things.
- 20:27>> Elizabeth Economy: Right.
- 20:27>> Matthew Turpin: But I think you, I think it's, it's, it's clear to me that,
- 20:32that President Trump and
- 20:34his administration don't see this purely as a China only sort of thing.
- 20:39Right. There is a global set of players, and
- 20:42the US has to, has to deal with a global set.
- 20:45You're never going to be able to sort of set aside that this is just
- 20:49a US China deal.
- 20:50It's always within the context of everything else that is happening in
- 20:53the world.
- 20:54And therefore, it has to be sort of, it has to be sort of thought about that way.
- 20:57And so I think it's, there's a tendency for
- 21:00those of us that sort of spend time on one country or one region to try and
- 21:05distill things down to just your area, and then hold everything else constant.
- 21:11But, you know, I, I've always felt that, you know,
- 21:15someone who was sort of an advisor on one area,
- 21:17I had to appreciate that the folks that I was working for had global portfolios, and
- 21:22those global portfolios pulled in all kinds of different directions.
- 21:27And so I think that's incredibly important to keep in mind that this is a multiplayer
- 21:32game and that there are simultaneously positive sum games happening,
- 21:37zero-sum games happening and non zero sum games happening, right?
- 21:41So it isn't as if we get to choose one or the other,
- 21:44it's those are all happening simultaneously.
- 21:48And so I think, you know, from, from my, my reading of sort of
- 21:52the administration's, you know, efforts so far in this first
- 21:57sort of 50 days is that they have certainly learned from their first term.
- 22:04You know, it isn't as if they're coming in.
- 22:06This isn't, this isn't spring of 2017.
- 22:09This is, this is with all of the accumulated experience from that
- 22:14period of time, and they've come in with a game plan.
- 22:18And I think that game plan is we would like to have a situation in
- 22:23which the trade balance between the United States and the PRC was balanced.
- 22:30But there's a deep skepticism that that's gonna be achievable.
- 22:34I think the administration spent enormous amounts of energy trying to do that
- 22:39in the first term and found that they had counterparts on the other side of
- 22:44the table who either were not negotiating in good faith or were simply unable
- 22:49to accomplish the kinds of outcomes that the United States would find acceptable.
- 22:55And that sets us up for really a difficult.
- 22:58Again, I think President Trump actually is committed and
- 23:03would like to have a fair deal between the United States and the PRC.
- 23:09But I suspect that he's deeply skeptical that the Chinese could actually do that.
- 23:13And therefore he'll probably spend much more time with others,
- 23:18much more time negotiating with others in ways to improve the US Position over
- 23:22time with the understanding that, that Beijing is likely the biggest
- 23:27disruptor to global trade and economic system and that the United States is,
- 23:32is probably best off settling things with other countries.
- 23:36And I think that's what we see in the style of negotiation.
- 23:41>> Elizabeth Economy: Okay, so let me, let me push you a little bit on that because,
- 23:45I mean, if the argument is that we're better off, you know,
- 23:50working with others before we, you know, work on China, it seems that nowhere,
- 23:56in fact, do we actually have a positive sum game going, right.
- 24:01Not with our closest allies either in, you know, North America,
- 24:04certainly not in Europe.
- 24:06Asia is a little bit uneven, a little bit, you know, teetering.
- 24:10It's not quite clear where we're going with our Asian allies at this point.
- 24:15So I'm, I'm wondering, with the exception of Russia.
- 24:18Right. And we can talk about this idea of
- 24:20a reverse Kissinger, right, in which the United States is ostensibly trying to,
- 24:25instead of, you know, pulling China away from Russia,
- 24:29we're pulling Russia away from China to our advantage.
- 24:32We can talk about whether that's,
- 24:34you know, even feasible or if that is what's going on.
- 24:37But I'm, I'm curious how you see all of these moves actually leading to
- 24:42greater leverage for the United States in its negotiations with China.
- 24:47>> Matthew Turpin: So I think, you know, I mean,
- 24:48I think we should look very closely at, at the set of meetings that the president
- 24:52held with Prime Minister Modi as an example of what this looks like.
- 24:56Right.
- 24:57So, I mean, in terms of sort of trade barriers and,
- 25:02and sort of unfair trade practices,
- 25:05certainly India falls in the same category as the prc, Right.
- 25:11But very early.
- 25:12I mean, within the first four weeks,
- 25:15Prime Minister Modi is invited to the Oval Office.
- 25:18They appear to have a very friendly and, and, and
- 25:21it appears to be a very sort of warm relationship between the two of them that
- 25:24they've clearly communicated while President Trump was out of office.
- 25:28They had a close relationship during his first term and they came to a set of
- 25:33agreements, it would appear, based upon the press conference and everything that
- 25:38was announced is that they would work on addressing sort of key trade issues that,
- 25:44that are of deep interest to both sides and that, that's what the trade team.
- 25:49Right, and that trade team of Treasury, Commerce, USTR, Peter Navarro and
- 25:54Kevin Haset that they're gonna work on developing things and
- 25:58resolving things between the U.S India relationship in that way.
- 26:03Right. I think that's pretty clear.
- 26:05I think we saw with Prime Minister Ishiba coming to Washington and
- 26:10meeting in the Oval, a similar sort of set of dynamics that are happening.
- 26:15I think this idea of resolving things with others doesn't necessarily mean
- 26:20that the United States accepts the, the current situation and
- 26:24is simply friendly on all those things.
- 26:27I mean, obviously what I think we're seeing with both Canada and
- 26:31Mexico is really a demand upon those two countries to take actions to prevent
- 26:35the Chinese from being able to use their markets as ways to get around the things
- 26:39that the United States has in place.
- 26:41I mean, this is, this is the, this is the aluminum and
- 26:43Steel tariffs that have gone in place.
- 26:45Right.
- 26:46Both Canada and Mexico.
- 26:48I mean Canadian aluminum is the biggest imports coming into the United States.
- 26:52It's not because Canada has a gigantic aluminum industry.
- 26:55It's because it's all transshipment from the world's greatest overproducer of steel
- 26:59and aluminum, which is China.
- 27:01Those things are highly tariff coming into the United States and unfortunately
- 27:06the Canadian government has allowed those things to bypass and come through their,
- 27:10their kind, their market into the United States underneath that.
- 27:14Right. And that's something that,
- 27:15that they're seeking to resolve.
- 27:17It's the exact same set of dynamics for the Europeans.
- 27:21I mean this is not new.
- 27:23The Biden administration has been raising, the Obama administration raised these
- 27:27issues with the Europeans and the Canadians, right?
- 27:30The massive overcapacity in China for steel and aluminum,
- 27:33the way that was doing harms to the United States.
- 27:36We would ask those countries to collaborate with us.
- 27:39They have chosen to this point not to collaborate with us because they fear
- 27:43retaliation from China.
- 27:44Right, that's the dynamic that I think is happening here.
- 27:48And they're going to continue to press, I think, to see those things and
- 27:52we'll see how that comes out.
- 27:54But fundamentally it's about to resolve those
- 27:57things which ultimately isolate Beijing in the long run, right?
- 28:02That if the United States is able to resolve those issues, then that actually
- 28:07strengthens the U.S's position is negotiating with China in the long run.
- 28:13>> Elizabeth Economy: Yeah, I mean, I think if we expand it out a little bit and
- 28:17we talk about President Trump's discussions of withdrawing from NATO
- 28:22though, and pulling ourselves out of various international institutions and
- 28:27arrangements, it seems to me know we're leaving the field open for China.
- 28:33We're not actually finding our way to constrain it because we're
- 28:37basically picking up our marbles and going home.
- 28:41And so, you know, what you're describing, I think may fit,
- 28:45may fit narrowly in the trade space and I'm not sure it does because I
- 28:49think China's also moved and is moving pretty aggressively to, you know,
- 28:54develop other markets, you know, in Africa, in Latin America,
- 28:59Southeast Asia, you know, so it isn't as dependent on the eu, us.
- 29:03So I'm just, >> Matthew Turpin: Are unlikely.
- 29:06I mean, I mean we should be very clear.
- 29:07There is no America-sized economy replacing.
- 29:10>> Elizabeth Economy: True.
- 29:11Absolutely.
- 29:12>> Matthew Turpin: There's no substitution within foreseeable future.
- 29:16Africa will never replace even a fraction of what
- 29:19the United States consumes from China.
- 29:21There isn't really a Chinese economy that can operate really without
- 29:25access to Europe and the United States.
- 29:27Right, it just doesn't work.
- 29:29There's not enough wealth across Latin America, Africa, Southeast Asia, to
- 29:34be able to consume the products that China produces and exports out into the world.
- 29:39So I think we should be very clear that you're right.
- 29:41They are absolutely trying to develop those things, but
- 29:45those things cannot be replacements to what the economic situation
- 29:50is between the US And China right now.
- 29:53And I think the President understands that.
- 29:55I think he views the US market, that selling into the world's largest
- 29:59wealthiest consumer market should be seen as a privilege, and
- 30:03that fundamentally that's the position we should be operating on,
- 30:08rather than the US As a market of last resort, and
- 30:11that it's an obligation that Americans open up their markets to everyone.
- 30:16That's just a different entire worldview of how to view trade.
- 30:21I suspect that he believes that a number of those international institutions have
- 30:26been unable to enforce the rules and norms that folks say that they enforce.
- 30:31And that becomes, I think, a deep frustration, is that we talk about
- 30:36these rules working, but they're only observed in the breach.
- 30:41And this is, I think, the fundamental frustration is that it doesn't,
- 30:44it isn't actually working.
- 30:46So therefore,
- 30:47the U.S is sort of forced to move in directions that take these actions.
- 30:53>> Elizabeth Economy: So is that Matt as explainer in chief, or
- 30:55is that Matt as defender in chief?
- 30:57I'm curious only in thinking about something like
- 31:00the World Health Organization, where removing ourselves actually removes us
- 31:05from access to a lot of information, a lot of scientific sharing around things
- 31:10like pandemics that ultimately undermine our own human security.
- 31:14I would argue same true with the Paris Climate Accord,
- 31:18where if it's not working the way that we want it to work,
- 31:22one could argue that it's better to stay in and push for some form of reform.
- 31:28>> Matthew Turpin: Yeah, I think for the WHO, after SARS,
- 31:31we tried to institute a series of really transparency
- 31:36initiatives that would allow for the kind of knowledge and
- 31:42information trading that we had all hoped for.
- 31:46And we watched, I think, an utter collapse of that at the start of COVID largely
- 31:51because the Chinese government absolutely refused to follow through on the rules
- 31:56that we had all set up and in a set of institutions.
- 31:58And so I guess there's sort of the Einstein definition of insanity, right?
- 32:04I mean, if you keep trying to do the same thing over and
- 32:07over again, accept a different result, there's, I think I have a little bit of.
- 32:10And you know, so I don't think that that means that every international institution
- 32:14has not been able to accomplish this thing.
- 32:16But I think on the who, I think we have to ask very serious questions of whether or
- 32:21not this system actually works.
- 32:24I'm deeply skeptical of,
- 32:26of the agreement that we made in 2015 over the Paris Climate Agreement.
- 32:30I am personally deeply skeptical,
- 32:33given the fact that we now have the Chinese economy in 2024,
- 32:37produced more coal fired power plants, brought more coal fire power plants
- 32:42online than essentially the entire existing infrastructure of Europe.
- 32:48If that's what the Paris Climate Agreement means, is that China,
- 32:52China is in compliance while it continues to exponentially increase its carbon,
- 32:57its CO2 output.
- 33:00My personal thing is that that probably isn't a very good deal.
- 33:04So I'm deeply skeptical of it.
- 33:08But obviously I don't think the United States is going to leave from
- 33:11being a permanent member of the UN Security Council.
- 33:14So if you looked at sort of the institutions that have some power and some
- 33:18things to be able to do, I think there are things that the US Is absolutely going to
- 33:22stay in, but there are other things that are no longer sort of fit for purpose.
- 33:26And so I'm sympathetic to those positions and I think I understand
- 33:31why the administration is pushing back on those things.
- 33:37And I think that it does require us to do a bit of a introspection about whether or
- 33:42not these international institutions can achieve the outcomes that we had
- 33:47laid out for them to do.
- 33:48Or is it that actually it's a bilateral, like fundamentally, if you want to achieve
- 33:52these outcomes, you're actually going to have to negotiate bilateral things.
- 33:56And I think for the Biden administration,
- 33:58this is where we found ourselves on dual use export controls, right?
- 34:01So we have an international institution called the Wassenar arrangement.
- 34:05Unfortunately, we allowed the Russians into that.
- 34:07It requires unanimity to be able to pass rules.
- 34:10So therefore we can't use the Vasanar arrangement in order to do dual use export
- 34:14controls against the Russians over their war in Ukraine.
- 34:17And so we had to negotiate bilateral, multilateral,
- 34:21minilateral arrangements outside of that international institution
- 34:25in order to deal with the problems that we had.
- 34:29Now, I completely agree with the Biden administration's approach on doing that.
- 34:32You had to do that.
- 34:33The existing institution simply fails to accomplish the thing, right?
- 34:38And I also think that it's probably appropriate for
- 34:41the Trump administration to do some of those things as well.
- 34:45>> Elizabeth Economy: So I'll be watching and waiting, Matt,
- 34:47to see whether in fact the Trump administration makes new and
- 34:51bold efforts on the issue of climate change outside the Paris climate accord.
- 34:56>> Matthew Turpin: I would be surprised, >> Elizabeth Economy: And
- 34:58the same true on the global health front.
- 35:00So if that in fact is the case, that we're withdrawing from these institutions
- 35:05because they're not effective or
- 35:07they're not realizing their objectives as quickly as we would like.
- 35:11And I think it's important to note that.
- 35:13>> Matthew Turpin: Well,
- 35:13I think Trump administration's, >> Elizabeth Economy: Agreement is that by
- 35:182030, right.
- 35:19Its emissions peak and then it goes down.
- 35:21I'm not, and I agree that that was a poor bargain to strike at the outset, but
- 35:25I think the real issue is I don't believe that they're actually withdrawing from
- 35:30these institutions because they think they're not fair enough.
- 35:34>> Matthew Turpin: Obviously,
- 35:35reducing CO2 emissions is not the administration's priority.
- 35:39Right. It obviously isn't that, that then.
- 35:42And of course, you know, when administrations are elected,
- 35:44they get to choose what prior, what they prioritize or what they focus on.
- 35:47Right. >> Elizabeth Economy: That's right.
- 35:48>> Matthew Turpin: I think it's very clear.
- 35:50I mean, it's not like they're saying that's what they're trying to do.
- 35:54We can see like they actually are not saying that's what they're prioritizing.
- 35:57So I think, >> Elizabeth Economy: Drill, baby, drill,
- 35:59if I recall, right?
- 36:00>> Matthew Turpin: Right, right.
- 36:01Because they think that energy security is an extremely important thing for
- 36:04the United States.
- 36:05And fundamentally that's what is going to help, you know, maintain, you know,
- 36:09a set of allies to be able to provide for that rather than becoming deeply dependent
- 36:13upon, you know, various authoritarian regimes that are providing energy.
- 36:18>> Elizabeth Economy: Yes. Well, we could have a much bigger and
- 36:20broader discussion.
- 36:21I was just at, Sarah, the big energy conference down in Houston.
- 36:24We get a big discussion about the role of renewables and
- 36:26what more we could be doing in that space too.
- 36:29But let's, let's, let's pivot.
- 36:30I do want to talk a little bit about Taiwan and I want to finish up on,
- 36:35on the whole Russia issue and China.
- 36:37So the president, President Trump has been non committal on Taiwan, you know, in,
- 36:43you know, obviously sort of opposite from, from President Biden who four times said,
- 36:48I think to the dismay of many, that he would come to the defense of Taiwan with,
- 36:53without any sort of caveats attached to that.
- 36:56People thought that was maybe not the most appropriate thing.
- 36:59Some people liked it, some people didn't but, but President Trump,
- 37:02you know, his statements on Taiwan have been, you know,
- 37:04to the effect of they stole our semiconductor technology.
- 37:07They should be contributing 10% of their GDP to defense.
- 37:10They should be paying us for defense.
- 37:12It's very hard to have a good sense for how he's looking at Taiwan.
- 37:17And he did get TSMC to do a big investment beyond what a Taiwan semiconductor
- 37:23manufacturing company had agreed to do under the Chips and Science Act.
- 37:29So what's your sense for
- 37:30where the administration's head is at when it comes to Taiwan?
- 37:34>> Matthew Turpin: Yeah, my suspicion is that, I think it's all true that, that
- 37:38what you've laid out of what the president has, has talked about in terms of Taiwan.
- 37:45I think, I think we should also add in that I think the president's been very
- 37:49clear that he does not.
- 37:50Does not want or, you know, would certainly deeply object to, you know,
- 37:55any use of military force to change the status quo.
- 37:59He deeply objects to that and has made it, I think, that pretty,
- 38:04pretty clear to Xi Jinping that we certainly do not expect or
- 38:08would allow for that kind of military force to be used.
- 38:13>> Elizabeth Economy: Has he said that?
- 38:13I mean, I know that Secretary of State Marco Rubio has said that.
- 38:17>> Matthew Turpin: I mean, I see that within the broad context of ensuring that
- 38:19there is peace and these kinds of attacks wouldn't happen under his rule, and
- 38:23he'll continue to push for that.
- 38:25Right.
- 38:25So I think that, like, if we look sort of look at it from that perspective, right.
- 38:29This is not Xi Jinping.
- 38:31If you want to launch a war, that's good on me.
- 38:34Right.
- 38:35No, I don't expect there to be any war.
- 38:38You know, he's also continuously pushing not only Taiwan to spend more on defense,
- 38:43but Japan to spend more on defense and Australia to spend more on defense and
- 38:47the Philippines to spend more on defense.
- 38:49Right.
- 38:50One could conclude similar to the ways in which President Trump pushed
- 38:55European allies to spend more money on their defense, that that is not
- 39:00exactly a very friendly and beneficial outcome to the Russians of the Chinese.
- 39:06Right.
- 39:07So I think we should, we should place it in that context that,
- 39:11that he is probably someone who wants to maintain sort of the status quo.
- 39:16Right. Which strangely,
- 39:18is sort of a little bit sort of pre.
- 39:21The four statements that President Biden had made about that sort of getting
- 39:26back to.
- 39:27We're certainly not going to encourage the Taiwanese to do anything,
- 39:31but we also do not want to encourage Beijing to do anything, right?
- 39:34That we are okay with the status quo.
- 39:37And if you're looking at that through to Taiwan's lens, well,
- 39:41the status quo is, I think, a not a bad outcome.
- 39:44Right. I mean,
- 39:45the status quo right now is that Taiwan has de facto in defendants.
- 39:51It's able to operate and run its own blockchain economy.
- 39:55And those are the outcomes that I think the United States would welcome.
- 39:59I think President Trump understands that, has an understanding of that
- 40:04certainly Xi Jinping absolutely wants to affect what he would call reunification.
- 40:10Right. And what I would call annexation, and
- 40:13that he is not interested in giving Xi Jinping the thing he most wants.
- 40:19So I suspect that that's the, that's the dynamic.
- 40:24But, you know, as, as he has said, you know, we'll.
- 40:28We'll see what happens.
- 40:30But I think that's the way it is, I mean, it certainly.
- 40:33>> Elizabeth Economy: So return to strategic ambiguity, basically.
- 40:36>> Matthew Turpin: Yeah, I think so, I mean,
- 40:38I think that is probably his sort of default position on this,
- 40:43is that that's probably the way to approach this, while encouraging, right?
- 40:49So, I mean, if the Taiwanese chose to increase their defense
- 40:53spending from about 2.5, 2.7% of GDP to 3 or 4% of GDP,
- 40:58I suspect that President Trump would absolutely welcome that and
- 41:03would open up US Defense sales to provide for those increases,
- 41:08would welcome those actions.
- 41:11That's probably not what Xi Jinping would like to hear from President Trump.
- 41:17>> Elizabeth Economy: So let me just take you back then, one step, you know,
- 41:20in terms of that sort of comprehensive deal of some form that you
- 41:24think President Trump might want to strike with the Chinese.
- 41:29You know, my sense from reading some things about what the Chinese side has
- 41:33been thinking about is they would love to structure a deal that would include
- 41:38basically, President Trump saying, you know, US Hands off on Taiwan.
- 41:43You saw that however you see fit.
- 41:46So they are trying, you know,
- 41:48to figure out what would it take to get President Trump to that point.
- 41:52You're saying you don't think President Trump would ever get to that point?
- 41:57>> Matthew Turpin: I think it'd be really difficult.
- 41:58I think. I think President Trump understands,
- 42:00you know, it's not like he hasn't heard that from the Chinese before.
- 42:03Right. I mean, it's not like between 2017 and,
- 42:07you know, January 2021, Xi Jinping never brought up Taiwan.
- 42:12>> Elizabeth Economy: No, never brought it up, but did they start to try to put
- 42:15things on the table that they thought would be so appealing to President Trump
- 42:19in some space or another that he would forsake Taiwan in some way?
- 42:23>> Matthew Turpin: I suspect that, yeah, his position will be,
- 42:26you couldn't even do the phase one trade deal we made.
- 42:30You couldn't even follow through on that, right?
- 42:33How can I, how can I trust you as a counterparty if you can't
- 42:39even follow through on the things that we agreed to in 2020?
- 42:44Why would I expect that, you would follow through on a bunch of
- 42:49commitments to us if we compromised on this right now, right?
- 42:54And so I suspect from his perspective it would be,
- 42:57once China can show the United States and
- 42:59the rest of the world that it can follow through on its commitments and
- 43:03really fulfill the things that it is said it's gonna do well, that at some point in
- 43:08time in the future we could have a discussion about other things, right?
- 43:13And I suspect that he's deeply skeptical that Beijing could ever
- 43:17do that within the time frame that would be meaningful for
- 43:20a deal that the two of them could get done.
- 43:22Hence the concentration on everybody else, right?
- 43:27Hence.
- 43:28That's why spend time negotiating with the Indians.
- 43:31That's why you spend time negotiating with the Russians.
- 43:33That's why you spend time on all those other things,
- 43:36because, >> Elizabeth Economy: But
- 43:37the Russians are so, so easy and so good.
- 43:40So let's move to the Russian.
- 43:43>> Matthew Turpin: He feels that he spent a lot of time really getting
- 43:46nowhere during his first term with Xi Jinping, right?
- 43:51Yeah, I mean, we were on the cusp of what he thought was a fairly good
- 43:56deal in May of 2019 where fundamentally had the Chinese sort of pursued that deal.
- 44:04That deal was essentially that China conduct the reforms that the Chinese had
- 44:09announced in November of 2013 at the Third Plan 18th Party Congress, right?
- 44:14The reason why that was those were Leo he's reforms.
- 44:17Xi Jinping rejected those, those were American changes, the United States
- 44:22wanted China to fulfill its commitments that it made to the world years before.
- 44:27>> Elizabeth Economy: Yeah, it was the last gasp effort by Liu.
- 44:30He was a kind of a type effort to get the international community to help
- 44:35the reformers put pressure on the leaders to do the right thing.
- 44:40>> Matthew Turpin: I suspect that on the American side that hasn't been forgotten.
- 44:44Right. Like that would be like the absolute
- 44:46minimum to start a period for us to be able to feel that there's enough trust for
- 44:51us to be able to have any other discussions.
- 44:53>> Elizabeth Economy: Well, we know that's not going anywhere.
- 44:55>> Matthew Turpin: Exactly.
- 44:56>> Elizabeth Economy: So that, that just sounds like one long four year stalemate
- 44:59to me, but.
- 45:00Okay, let's talk, >> Matthew Turpin: Which is what
- 45:01I think is happening.
- 45:03>> Elizabeth Economy: Okay.
- 45:03>> Matthew Turpin: That's my prediction is that fundamentally this is a stalemate.
- 45:06>> Elizabeth Economy: Okay, well, I guess that's good news for
- 45:09Taiwan because underneath everything you said, it sounded to me like you're not
- 45:13100% certain that we couldn't trade away Taiwan in the future.
- 45:17If President Trump believed that China would adhere to its agreements.
- 45:21But I'm not gonna push you anymore on that.
- 45:23I'm just the subtext of what you're saying.
- 45:25So Russia, you know, big play with Russia.
- 45:29This whole idea of a reverse case Kissinger,
- 45:32do you think that is what the administration is trying to accomplish?
- 45:35Do you think it's feasible that he could split Russia from China?
- 45:41>> Matthew Turpin: So, I mean, I think it is.
- 45:44It's certainly something that, you know, folks like Steve Bannon and
- 45:48others coming into the administration back in 2017 had in mind, right.
- 45:52That fundamentally, that if you allowed Beijing and
- 45:56Moscow to become closer and closer partners and
- 45:59the United States had relatively weak and divided European partners,
- 46:04and you had other countries that weren't really capable of standing up and
- 46:09being a partner with the United States, that if you're talking about a great
- 46:14power triangle, it's a really bad position for the United States to be in.
- 46:19Is the odd man out that fundamentally you need to sort of work your way out of that.
- 46:24And so that leaves you with sort of two options.
- 46:26Do you pull the Chinese away from the Russians or
- 46:29do you pull the Russians away from the Chinese, right?
- 46:33Obviously, the approach that Nixon and
- 46:36Kissinger took is that you focus on the weaker of the two because then you can
- 46:40offer them things in terms of compromises which then sets them against the other.
- 46:46Now, of course, when Nixon and Kissinger did this,
- 46:49you already had had a Sino Soviet split, right.
- 46:52>> Elizabeth Economy: You had an interested party [LAUGH], yeah.
- 46:54>> Matthew Turpin: Right, and so the Adam interested part.
- 46:56But, but again, I mean, you know, you know,
- 46:58it is not a given that within the sort of communist bloc that
- 47:02they would necessarily turn on each other to side with the United States.
- 47:06Right. So, I mean, it was a, it was a bit of a,
- 47:08there was a bit of a challenge there to figure out how to, how to bring, you know,
- 47:12so Kissinger and Nixon deserve some credit there to figure out how to get that done.
- 47:16And so I think, I think I've written that.
- 47:20I think the likelihood of its success is relatively low, but
- 47:24it is sort of the best of the worst options, right?
- 47:27So right now, I think for the United States, we don't have many good options,
- 47:32geopolitical options, Right.
- 47:34So we don't like this situation where the war in Ukraine continues on and
- 47:40we continue to have the threats of expansion and both horizontal and
- 47:45vertically in terms of geographic expansion.
- 47:49Anybody watching what's been happening in the Baltic Sea over the last six months
- 47:54should be deeply concerned, right, that fundamentally we could see
- 47:59an expansion geographically of that conflict against NATO.
- 48:02And also a vertical escalation in terms of, you know, up to higher weapons and
- 48:06things like that.
- 48:07Right. So that there's a danger as that
- 48:08conflict goes on.
- 48:09So I suspect that just as I laid out Penn Kissinger's,
- 48:13remarks back in May of 2022 that fundamentally, at some point in time,
- 48:17we're going to have to try and figure out to bring this conflict to an end.
- 48:22We don't want this to continue on.
- 48:23And that at that point in time, it is not as if Beijing and
- 48:28Moscow are permanent and perfectly aligned allies that have identical interests.
- 48:36They have differences.
- 48:37There are things you can pull on.
- 48:39And so it is certainly not impossible for that to happen.
- 48:44It is going to be difficult.
- 48:45It will require real effort to be able to make that happen.
- 48:49But my sense is that they're really aren't too many other better options.
- 48:56Some things that could have happened that maybe would have
- 49:00gotten us to a better position is, I mean,
- 49:02had our European allies taken February of 2022 much more seriously and
- 49:07actually had gotten themselves into a much better defensive position today
- 49:12than where they were, than where they are, this might be a little bit easier.
- 49:17Like, there might be a.
- 49:18There might be some other options to this that, that isn't.
- 49:23That didn't happen.
- 49:24Right. And it's unclear whether that will.
- 49:27Maybe Chancellor soon to be Chancellor Mertz will be able to do that in Germany.
- 49:33But I think there's a lot of question marks about whether or not the Germans can
- 49:37actually make that happen, and whether or not the Europeans can bring
- 49:41themselves together in a united fashion to be able to sort of strengthen themselves.
- 49:45So I'm, I'm deeply concerned about that.
- 49:47And then on the other side, you know, unfortunately,
- 49:52we don't have particularly strong allies in other places.
- 49:57Right.
- 49:58Yeah, certainly, I think we're deeply aligned with the Japanese, but
- 50:02they don't have kind of the scale.
- 50:05And we should be very honest.
- 50:07We've got real political uncertainty in Tokyo.
- 50:11Prime Minister Ishiba is not in a particularly strong position.
- 50:14You know, once Prime Minister Abe was assassinated in the summer of,
- 50:20what, 2322, it's.
- 50:22It's been hard for the Japanese to put together, really,
- 50:25a leadership team that can really sort of lead on that side.
- 50:28And so the United States, I think, is, is a bit stuck, and
- 50:31it has to figure out what are the other options.
- 50:33And so again, I, I don't think it's this is not the first, this is not
- 50:37the option I would choose, but it's probably an option that is plausible and
- 50:43it really has to do then with what can actually get negotiated, right?
- 50:47So it remains to be seen.
- 50:50The one thing I would say is that, you know, if, if the outcome is,
- 50:55is that the United States is going to do a degree of a compromise on Ukraine.
- 51:00That's something that the United States can negotiate with Moscow in ways that
- 51:04Moscow can't get that from Beijing.
- 51:06Right. So if that's what Putin really wants,
- 51:09that is something the United States can negotiate on.
- 51:12And I mean, it's unfortunate, but that is sort of the,
- 51:15that's the reality of how it looks.
- 51:17And that could create a situation where the United States is able to do some
- 51:20things and that would be really problematic for Beijing.
- 51:23And I think that it's fun.
- 51:24It's one of their fundamental fears is being sort of isolated in this,
- 51:28which may bring us to a position where we can have a, a real negotiation with
- 51:33Beijing about, you know, how much do they push on countries around them and
- 51:38act in ways that are disruptive to a global system.
- 51:42>> Elizabeth Economy: Okay, I put the odds of that happening.
- 51:45I don't know if there's a number less than zero in an odd.
- 51:48I'd put it there.
- 51:50But let's reconvene in a few months, Matt, because in fact I didn't
- 51:55get to ask you most of the questions around economic security and
- 52:00technology that you are so fluent and so good in.
- 52:04So I want to have you back for that whole second discussion.
- 52:08>> Matthew Turpin: I look forward to it.
- 52:10>> Elizabeth Economy: And we can then assess, you know, what's,
- 52:12what's transpired.
- 52:14>> Matthew Turpin: It deserves a close watch.
- 52:17I think there is, there is, there is no guarantee, but
- 52:21it appears that that is what the administration is trying to do.
- 52:26>> Elizabeth Economy: Agreed.
- 52:27That is what they are trying to do.
- 52:29Okay. I always finish up with a couple of quick
- 52:32questions questions just to get your take first.
- 52:36What would be your must read book or article on China that you would recommend?
- 52:41>> Matthew Turpin: I really like Xi Jinping thought
- 52:46Stephen Zhang and, >> Elizabeth Economy: Love that book.
- 52:51>> Matthew Turpin: Yes, >> Elizabeth Economy: Olivia Chung.
- 52:52>> Matthew Turpin: I think, I think they did a really good job with.
- 52:57Yeah, they've sourced it really well and I'm really impressed.
- 53:03I have on my desk Kevin Rudd's book on it too.
- 53:07I suspect that one is equally good.
- 53:08I just have not made it through it yet, unfortunately.
- 53:11>> Elizabeth Economy: Yeah, you can read my review of it in the next issue of 4.
- 53:14>> Matthew Turpin: Excellent.
- 53:16>> Elizabeth Economy: It is a great book.
- 53:17But as I say, it's not for the faint of heart.
- 53:20>> Matthew Turpin: Yeah, well,
- 53:21I am a bit of geek on these things, so, >> Elizabeth Economy: You can definitely
- 53:24make it through.
- 53:25>> Matthew Turpin: Yeah.
- 53:26>> Elizabeth Economy: Okay, so Steve John's book, 100% agree.
- 53:31What China issue.
- 53:32Do you think we don't know enough about what's studied in our field?
- 53:37>> Matthew Turpin: Yeah, you know, yeah, my sense is that,
- 53:43that, you know, there is a lot that
- 53:48said that we don't understand.
- 53:52I actually think we do understand China relatively well.
- 53:57I think we have an understanding of their, of their system.
- 54:00I think we have to look at it through a lens of,
- 54:03of sort of a Leninist political system and
- 54:06sort of get back to this knowledge of how do Leninist systems operate.
- 54:11Right. You know, and
- 54:12this goes back to the book the Organizational Weapon, sort of written in
- 54:16the 1950s that sort of examines how Leninist political systems operate.
- 54:20Like what is the way, how do they use organization,
- 54:23how do they use party structures to get things accomplished?
- 54:27And I think that would provide us a lot more insight into,
- 54:30into how Xi Jinping is setting up the party.
- 54:33Now that, that wasn't the case.
- 54:3615 years ago.
- 54:37Right.
- 54:38Because we were living in, under sort of a different China.
- 54:41But I think Xi Jinping has definitely moved the party in that direction.
- 54:45Right. He's moved it to a much more sort of
- 54:48political Leninism than, than what it was before.
- 54:51And those are, that's, that's terminology that many of us thought we should have
- 54:56flushed out, you know, four decades ago and we didn't have to worry about anymore.
- 55:02>> Elizabeth Economy: Okay, last one.
- 55:03On a scale of 1 to 10, with 10 being the highest likelihood,
- 55:07what are the odds not of a reverse Kissinger, but
- 55:10of a Nixon Mao moment in the US China relationship within the next decade?
- 55:18>> Matthew Turpin: I think it's so one being the least likely.
- 55:23>> Elizabeth Economy: One being the least likely.
- 55:25>> Matthew Turpin: Yeah, it's, it's probably a one or two, and I think it's,
- 55:29it's the d, it's just sort of the dynamics of, of sort of the, the,
- 55:33the sort of the geopolitical landscape.
- 55:37Again, we made that agreement because they were the lesser of the rivals.
- 55:44And so, you know,
- 55:45you don't make those kinds of agreements with your primary rival.
- 55:51So I, I, I think it's, I think it's unlikely because I think from both
- 55:55the United States and, and the prc, each thinks that it needs to get itself
- 56:00in a position, you know, to, to gain an advantage over the other.
- 56:04And so it's unlikely that we're going to come to some sort of grand bargain.
- 56:08>> Elizabeth Economy: Maybe we'll have a Massive shift in leadership in the PRC.
- 56:11That will surprise us maybe.
- 56:13>> Matthew Turpin: I mean, obviously Xi Jinping will not live forever.
- 56:16Right.
- 56:18>> Elizabeth Economy: That we can count, yes.
- 56:19>> Matthew Turpin: That's right.
- 56:20And in leadership transitions,
- 56:22there are always opportunities to figure out what can be done.
- 56:26And I think certainly the PRC understands that about the United States.
- 56:30It starts off each, in many ways,
- 56:32it starts each new administration off with looking for ways to change things.
- 56:36And we should look at it the same way.
- 56:37We just haven't had that now for what, a dozen years?
- 56:41>> Elizabeth Economy: Right, right.
- 56:42And we are probably not going to have it for another seven or so.
- 56:45So. >> Matthew Turpin: Right.
- 56:46So no, I mean, he's in his early 70s.
- 56:49Right.
- 56:50Statistically, we're getting into those ranges where, you know, there,
- 56:55there is, there is a non zero chance that, that this, you know,
- 56:59he passes away naturally in the next few years.
- 57:02>> Elizabeth Economy: I don't, I don't know, Matt.
- 57:03You know, he'll be, he'll be, you know,
- 57:0678 at the end of his, of a fourth five year term.
- 57:10And you know, that's like, that's young.
- 57:12For, you know, for today's leaders.
- 57:14>> Matthew Turpin: That's young.
- 57:15>> Elizabeth Economy: Spring chicken.
- 57:17>> Matthew Turpin: But again, he's loved in a society where there's
- 57:21probably a lot of smoking and, you can imagine.
- 57:25I mean, it, it is certainly possible.
- 57:27I mean, look, it just happened to his old premiere.
- 57:31>> Elizabeth Economy: That was very sad.
- 57:32Actually, there were one person I would have liked to have seen lead the country
- 57:36instead of Xi Jinping, it would have been Li Keqiang.
- 57:39On that note, let me thank you so much for taking the time to speak with us.
- 57:46I think it was a really rich and substantive discussion,
- 57:49gave an enormous amount of food for thought.
- 57:53So thank you and I hope you'll come back on in another four or
- 57:57five months to do an assessment of what we got right, what we got wrong.
- 58:02>> Matthew Turpin: Yep. And
- 58:03I could certainly be wrong in all of this, so thank you, Liz.
- 58:06I really appreciate it.
- 58:08>> Elizabeth Economy: If you enjoyed this podcast and want to hear more reasoned
- 58:10discourse and debate on China, I encourage you to subscribe to China Considered via
- 58:14The Hoover Institution YouTube channel or podcast platform of your choice.