In a speech at the Brookings Institution, Sullivan said President Biden’s pursuit of industrial policy and worker-centered trade will “not only preserve America’s enduring strength, but extend it for generations to come.” He said it was aimed at.
The Biden administration will “implement a modern industrial strategy” that will allow the United States to return to “the traditions that made America’s international leadership an enduring force,” National Security Adviser Jake Sullivan said. said in a speech this week at the Brookings Institution.
But Sullivan also said the United States will invest in critical industries, allocate resources to areas of need globally, and “work here at home to ensure that the U.S. government has the resources and capacity to carry out this economic policy.” He also warned that political will must be maintained. long term vision. ”
Sullivan’s speech served as a kind of closure for the industrial and trade policies introduced under President Biden. This policy included strategic investments such as CHIPS and the Science Act, and pro-worker trade actions such as maintaining or increasing tariffs on imports from China. . These efforts are helping to lift the spirits of workers while addressing challenges such as global supply chain vulnerabilities and the climate crisis, Sullivan argued.
But Biden’s strategy also undermines U.S. trade policy, which for decades has favored free trade and “just-in-time” supply chains that prioritize the economic interests of corporations over American workers. It marked a major shift, resulting in the loss of millions of factory jobs and devastating industrial communities.
Although Biden’s change to the status quo has proven difficult for some free trade advocates to accept, it is necessary and the United States has maintained its “tradition that has made America’s international leadership an enduring force; It allows us to return to what Alexis de Tocqueville called ‘profit’. I got it right,” Sullivan said.
“The world of the 1990s is over, and it’s not coming back. Just wishing it so is not a coherent plan or critique,” Sullivan said.
“We need to clarify once again that de Tocqueville’s concept of profit is correctly understood,” Sullivan said. “For us, it’s fundamentally a positive sum, tailored to today’s geopolitical realities, to protect America’s interests: American workers, American communities, American businesses, and American national security and economic strength. It means pursuing strategies that are rooted in what is good for people.”
Sullivan said the strategy Biden is rolling out does not mean shutting down trade. Rather, the United States’ goal is to work with strategic allies to introduce “a new trading system strengthened and enabled by bold public investment in key areas.” In rare but important cases, it is limited by principles-based regulation of key national security technologies. Protection from harmful non-market practices, labor and environmental abuses, and economic coercion. And we work closely with a wide range of partners. ”
Countering the Chinese government’s wrongdoing is a key part of this strategy, Sullivan said. For example, China currently controls important mineral markets, leading to “extreme price fluctuations, widespread corruption, labor shortages, and environmental protections.” If the United States and its allies do not invest in building their own supplies of these minerals, we will become “increasingly dependent on countries that have demonstrated a willingness to weaponize such dependencies.” Sullivan insisted.
Climate is another example. “U.S. manufacturers are world leaders in clean steel production, but they have had to compete with companies that produce steel at lower prices and higher emissions intensity,” Sullivan said.
Sullivan also defended the Biden administration’s decision to maintain Section 301 tariffs on imports from China and increase them in some areas, saying doing so is necessary to “prevent a second China shock.” claimed that it was.
“We now know that indiscriminate and broad-based tariffs harm workers, consumers, and businesses both in the United States and our partners. The evidence is clear.” Sullivan said. . “That’s why we chose instead to target injustices with tariffs in strategic areas where we and our allies are investing hundreds of billions of dollars to rebuild manufacturing and resilience.” Importantly, both developed and emerging market partners have reached similar conclusions regarding overcapacity and are taking similar steps to avoid damage to their own industries. ”
Along with trade, investments in key areas such as the CHIPS Act and the Suppression of Inflation Act are needed to ensure the United States can compete and win in the 21st century, Sullivan said.
“The truth is that smart, targeted government investment has always been a key part of the American formula. Promoting private investment and growth in areas where market failures and other barriers lead to underinvestment.” is essential,” he said.
“Somehow, somewhere along the way, we forgot about it, or at least stopped talking about it. But without reclaiming this tradition, there are no convincing answers about decarbonization or supply chain resilience. It didn’t exist. And so did we.”
