February 5, 2024

ALI Perspective

Given the strength of the U.S. economy, especially compared with the rest of the developed world, now is the moment for the U.S. to step up its leadership role in the global economy. This means renewing and upgrading preference programs like AGOA and GSP, redoubling our efforts to reform the WTO as part of the MC13 meetings later this month, and deepening economic engagement in the IndoPacific, Africa and the Western Hemisphere.

The U.S. has now solidified its position as the strongest economy in the world. Annual inflation is approaching the Federal Reserve’s 2 percent target, GDP grew by 3.1% over the past year, while unemployment remains low, and the stock market is booming. Meanwhile our allies continue to face economic challenges - Japan’s GDP shrank by 2%, the UK grew by 0.2% and the EU by 0.1%. China is facing high unemployment, deflation, a stock market slump, and a decline in foreign investments. Now is the time for the U.S. to lead the rest of the world toward a stronger, more inclusive, and sustainable economic future.

ALI Annual Policy Retreat: A New World Disorder

ALI is gearing up for its second annual policy retreat on March 5 - 6 in Washington DC. The event kicks off with an evening Reception Celebrating U.S. Global Leadership followed the next day by an in-depth Roundtable with members of Congress and Administration officials discussing Competing with China Globally; New Paradigms for Trade & Industrial Policy; and Winning the Tech & AI Race with American Values. To learn more, contact info@american-leadership.org.

Coming Up

ALI Webinar: Perspectives from the Indo-Pacific

Please join us for an ALI webinar on February 21 at 10:00-11:00 a.m. with New Zealand Ambassador Bede Corry and Singapore Ambassador Lui Tuck Yew.

ICYMI

ALI Hosts Nora Todd, Director for International Economics, NSC

ALI hosted Nora Todd, Director for International Economics at the National Security Council, to discuss the Administration’s international economic agenda in 2024. She discussed the Administration’s focus on economic security, with a continued focus on de-risking our relationship with China, investing in and protecting U.S. technology. The Administration will continue to focus on IPEF, implementing the three concluded pillars while continuing negotiations on the trade pillar. Finally, the Administration will continue pursue global alignment on AI guardrails.

What We're Reading

WSJ: New Disruptions, Geopolitics Hang Over 2024 Supply Chains

“Global trade flows are shifting as importers increasingly look away from China, the world’s chief supplier of goods, to alternative suppliers in countries such as Vietnam, India and Mexico. Here too they are running into supply chain bottlenecks, highlighting how strategies meant to reduce supply risks can create new challenges.”

Foreign Affairs: The Strategic Case for Democracy Promotion in Asia

"....leading Asian democracies evince an increasing determination to make values the center of their foreign policy. In recent surveys run by the Center for Strategic and International Studies, Asian policy experts—excepting only Chinese and Singaporean respondents—ranked “democracy,” “human rights,” and “free and fair elections” as critical to the future of their entire region. In a shift, Japan and South Korea have added support for good governance to their foreign assistance portfolios, recognizing that accountability and the rule of law undergirds security in the Indo-Pacific."

SCMP: EU slows down de-risking plans for China in face of member state resistance

"The European Union inched forward with its plans to de-risk its relationship with China on Wednesday, but the most controversial elements have been tempered amid resistance from member states....Unveiled in Brussels on Wednesday were plans to revise rules on vetting foreign investments and to set guidelines on academic collaboration to protect European researchers from industrial espionage and foreign interference."

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