As the U.S. navigates a complex global landscape, the connection between economic strength and national security has become increasingly evident. U.S. Secretary of Commerce Gina Raimondo emphasized this link during a speech at the Atlantic Council in May 2024, highlighting the need for a cohesive strategy that integrates economic and national security [a1f21b44].
However, recent analysis from the Council on Foreign Relations argues that simply tightening trade rules without promoting trade could undermine U.S. economic security. John Taishu Pitt points out that both the Trump and Biden administrations have focused heavily on defensive measures such as sanctions and export controls, which may not be sufficient for long-term competitiveness [2eebac97].
The Biden administration has already taken steps to address these concerns, proposing a ban on Chinese software in vehicles due to cybersecurity risks, reflecting a growing awareness of the vulnerabilities posed by foreign technology [a1f21b44]. Additionally, the upcoming 2024 Transatlantic Forum on GeoEconomics aims to align Western allies on critical issues in finance, technology, and energy, signaling a collaborative approach to economic security [a1f21b44].
The need for a robust strategy is underscored by vulnerabilities exposed during recent global events, including the COVID-19 pandemic, Russia's invasion of Ukraine, and intensified competition with China. These challenges have been framed in the 2022 National Security Strategy, which identifies climate and energy security as existential threats [a1f21b44].
In light of these developments, the next U.S. administration is urged to prioritize the protection of sensitive technologies, drive the energy transition, and secure the financial system against emerging threats. The Office of the Director of National Intelligence has identified disruptive technology and digital authoritarianism as top threats, emphasizing the importance of proactive measures [a1f21b44].
Export controls on technology have been a key tool in this strategy, having been employed against Russia since February 2022. In a reciprocal move, China announced export restrictions on graphite in October 2023, responding to U.S. semiconductor restrictions, further complicating the global trade landscape [a1f21b44].
Moreover, with 30% of the world's critical mineral reserves located in Africa, securing these resources is essential for the U.S. to maintain its technological edge [a1f21b44]. Financial criminals are also a growing concern, having moved $3.1 trillion through the global financial system in 2023, while cyberattacks targeting financial institutions threaten the integrity of the financial system [a1f21b44].
To address these multifaceted challenges, the next administration should focus on developing public-private partnerships aimed at securing the financial system and ensuring that the U.S. remains resilient in the face of evolving threats [a1f21b44].
Pitt's analysis also highlights the importance of trade liberalization as a means to enhance economic security and competitiveness. He notes that while defensive policies such as tariffs and sanctions are necessary, offensive strategies like free trade agreements are equally crucial. The U.S. has made limited changes to existing agreements like USMCA and KORUS, while China has signed the Regional Comprehensive Economic Partnership (RCEP), covering 30% of global GDP [2eebac97].
With Asia projected to account for 60% of global growth in 2024, the U.S. must engage in comprehensive trade agreements to set global standards and maintain its competitive edge [2eebac97].