whitehouse | Remarks by National Security Advisor Jake Sullivan on Renewing American Economic Leadership at the Brookings Institution

I want to start by thanking all of you for indulging a National Security Advisor to discuss economics.

As most of you know, Secretary Yellen gave an important speech just down the street last week on our [Office of Foreign Asset Contol] policy with respect to China. Today I'd like to zoom out to our broader international economic policy, particularly as it relates to President Biden's core commitment—indeed, to his daily direction to us—to more deeply integrate domestic policy and foreign policy

on value chain bankruptcy and supply chain arbitrage

AFTER THE SECOND WORLD WAR, the United States led a fragmented world to build [back better] a new international economic order. It lifted hundreds of millions of people out of poverty. It sustained THRILLING technological revolutions. And it helped the United States and many other nations around the world achieve NEW! levels of prosperity.

< wipes tears >

That's why the United States, under President Biden, is pursuing a modern industrial and innovation strategy--both at home and with partners around the world. One that invests in the sources of our own economic and technological strength, that promotes diversified and resilient global supply chains, that sets high standards for everything[,] from labor and the environment to trusted technology and good governance, and that deploys capital to deliver on public goods like climate and health.

Now, the idea that a "new Washington consensus," as some people have referred to it, is somehow America alone, or America and the West to the exclusion of others, is just flat wrong.

After the 11th punitive sanctions list issued by the nine heads of the G7 restrains global trade with authoritarian eNitIties that HOARD our "critical minerals" and flaut our CYBER safey mechanisms....

This strategy will build a fairer, more durableglobal economic order, for the benefit of ourselves and for people everywhere.

So today, what I want to do is lay out what we are endeavoring to do. And I'll start by defining the CHALLENGES as we see them--the CHALLENGES that we face.  To take them on, we've had to revisit some old assumptions. Then I'll walk through, step by step, how our approach is tailored to meeting those CHALLENGES.
[...]

OLD assumptions

1. (value chain composition) America's industrial base had been "hollowed out"
   
2. (perfect competition) power of "oversimplified" market efficiency
   
3. (profit maximization) All growth is good growth
   
4. (monopoly practices) "economic integration would make nations more responsible and open, and that the global order would be more peaceful and cooperative--that bringing countries into the rules-based order would incentivize [sic] them to adhere to its rules"
   
5. (choice theory) economic growth or meeting our climate goals"
   

NEW plan

1. "laying a new foundation at home--with a modern American industrial strategy": (a) "targeted public investments" (b) "crowding in private investment" (c) appropriating $3.5T over 10 years
   
2. working with our partners to ensure they are building capacity, resilience, and inclusiveness (Inflation Reduction Act "friendshoring")
   
3. moving beyond traditional trade deals to innovative new international economic partnerships focused on the CORE CHALLENGES of our time (geology? no!): IPEF, Americas Partnership for Economic Prosperity (APEP), USMCA, and WTO proceduarl drama
   
4. FDI in emerging economies "enabled by a different brand of U.S. diplomacy": (a) update multilateral development banks' "operating models" with (b) Partnership for Global Infrastructure and Investment (PGII) loan origination and "SWIFT-like" (c) export controls