The United States must adapt to a fast-changing world. The Biden administration recently laid out a new strategic plan.
The United States of America started to rethink its global strategy in a fast-shifting geopolitical landscape that takes no prisoners. It’s what Martin Wolf from the Financial Times calls "buyer’s remorse", pointing to today’s global order that America largely created.
A global order based on victory against Nazi Germany in 1945 and then reinforced by the Soviet Union’s collapse in 1991. The global order that was born out of victory against evil now needs a new purpose.
The United States faces new challenges, both internally and externally. Socially, Americans want change, seeking the welfare they believe is due to them. In decades, the political debate has never been so divided, and for the first time since the Civil War, American democracy seems at stake.
A dying middle class and a devaluation of the dollar only make matters worse.
Externally, the United States faces increasingly powerful foes. The illusion that, after the collapse of the Soviet Union, the US could enjoy global dominance forever remains, precisely, an illusion.
China has become the world’s second-largest economy in two decades. The war in Ukraine made China ever more powerful, ultimately bringing Russia into Beijing’s sphere of influence. The technological and military gap between China and the United States is closing, and the US must react.
And even if the US-China confrontation ends with an American victory (many present indicators suggest it will), the illusion is forever shattered.
Bideneconomics
In this context, the Biden administration is trying to design a new economic, social, and political policy for the United States. In a speech called "Renewing American Economic Leadership", national security advisor Jake Sullivan laid out a possible future plan.
Sullivan’s strategy involves four different sets of actions. The first step must be to re-establish competitiveness of the US manufacturing sector, the basis of economic growth.
Decades of outsourcing have increased China’s manufacturing competitive advantage. Now that China is no longer regarded as the world’s factory, the United States has a perfect chance to react.
Then, the US and its partners must "ensure they are building capacity, resilience, and inclusiveness, too" Sullivan said. Third, new trade deals must be focused on the economic challenges of our time, namely the green transition and new digital infrastructures.
Fourth, the United States must act like China and invest heavily in emerging economies. Finally, the United States must be protective of its most strategic technological resources. Biden’s chip ban on China is a perfect example of this.
In conclusion, the United States will soon shift its economic strategy to face new challenges and retain its dominant position. Only future generations will know whether they succeeded or not.
