Sharper: Economic Security

U.S. international economic policy now centers squarely on economic security objectives, as a result of geopolitical competition with China, post-pandemic awareness of the fragility of supply chains, and a resurgence of industrial policy. Security concerns drive economic policy, and the lines between economic and national security are increasingly blurred. CNAS experts are sharpening the conversation to advance a more strategic approach to economic security, one that advances U.S. security interests while promoting long-term U.S. economic prosperity and competitiveness.

Features

U.S. Economic Security Strategy, Authorities, and Bureaucratic Capacity

“China is a foremost geopolitical challenge for the United States,” said Emily Kilcrease, senior fellow and director of the Energy, Economics, and Security program in a testimony for the U.S. Senate Committee on Banking, Housing, and Urban Affairs on national security challenges. Her testimony focuses on issues of strengthening economic security strategy, authorities, and bureaucratic capacity to keep pace with China on emerging technologies.

Disorderly Conduct

A new report explores the rise of security issues within the U.S.-China economic relationship, emphasizing how strategic competition has disrupted the global economic order, and proposes a framework for the United States to navigate this evolving landscape. While historically U.S. strategies have sought to integrate China into the global order, policymakers no longer believe they can change China’s behavior and instead seek to constrain actions that threaten U.S. economic security interests.

How to Regulate Smart, Not Dumb, with Alan Estevez

Under Secretary of Commerce Alan Estevez recently joined Derisky Business to talk tech competition with China, how Russia can still get western chips, and why all our cars might be spying on us.

No Winners in This Game

The relationship between the United States and the PRC is marked by both geopolitical tensions and deep economic linkages. And the once unthinkable idea of imposing severe sanctions on China has become a strategic imperative to consider. A report from the Energy, Economics, and Security team at CNAS seeks to advance policy debates on how to sanction China, if geopolitical conditions warranted doing so at scale. A new video breaks down how sanctions can be used to greatest effect as part of a broader strategy that integrates all instruments of national power.

Rebuild: Toolkit for a New American Industrial Policy

As economic security comes to the forefront of U.S. foreign policy, the U.S. strategy has been largely reactive and focused on playing defense rather than offense. Actions have centered on slowing down competitors—namely China—rather than defining an affirmative vision for growing American strength in the economic domain. A uniquely American industrial policy is the missing piece of the U.S. economic security strategy. A report from Emily Kilcrease and Emily Jin lays out the tools available to the U.S. government for implementing industrial policy effectively.

Commentary

Rumors of China’s Decline Are Premature and Dangerous
January 2024

“China continues to rise and seems bent on regional domination and international revisionism,” wrote Richard Fontaine for The Washington Post. “In the grand U.S.-China contest that increasingly drives international politics, however, Beijing’s absolute strength is only half of the equation. Relative power ultimately matters most in contests of this sort, and so America’s own strength will be all-important. Here we have work to do.“

How to Win Friends and Choke China’s Chip Supply
January 2023

”To forge a consensus, the United States should remain laser focused on the national security justification for the new controls and offer foreign partners a clear picture of how far it intends to extend its aggressive new approach, specifically in sectors other than chips and supercomputing,” writes Emily Kilcrease for War on the Rocks. “Washington should proactively work with partners to mitigate the economic effects of the new controls, providing clarity and predictability for industry participants with investment timelines that stretch over a decade. Guidance on future licensing policy, as well as exemptions from the extraterritorial aspects of the new rules for those countries that implement substantially similar controls, should feature prominently in the ongoing negotiations.”

How to Stop Our High-Tech Equipment From Arming Russia and China
December 2023

”During the Cold War, the West imposed expansive controls on metalworking tools to prevent them from being used for Soviet military purposes,” write Chris Miller and Jordan Schneider for The New York Times. “Getting serious about machinery export controls today is one of the most cost-effective ways to meaningfully limit our adversaries’ militaries. Facing a revanchist Russia and adversarial China, we need to revitalize these techniques, or else our tools will continue to be used to build their militaries.”

America’s Chance to Blunt China’s Encroachment
December 2023

“While the U.S. rightfully focuses on bringing its hostages home from Gaza and alleviating broader tensions in the Middle East, the U.S.-China competition continues unabated,” observes Daniel Silverberg and Elena McGovern for The Wall Street Journal. “The supplemental funding package for Israel that President Biden proposed in October contains a $1.25 billion funding request for the International Bank for Reconstruction and Development—a part of the World Bank—to help developing nations such as Kenya, Morocco and Nigeria get loans from Western organizations instead of from China. Congress should endorse this package and enact additional measures to weaken Chinese economic influence in the developing world.”

In the News

Commentary and analysis from Emily Kilcrease and Geoffrey Gertz.

About the Sharper Series

The CNAS Sharper series features curated analysis and commentary from CNAS experts on the most critical challenges in U.S. foreign policy. From the future of America's relationship with China to the state of U.S. sanctions policy and more, each collection draws on the reports, interviews, and other commentaries produced by experts across the Center to explore how America can strengthen its competitive edge.