The outcome of the U.S.-CCP strategic competition will determine the direction of the twenty-first century, and U.S. economic policy will play a decisive role in this contest. To ensure the United States prevails in this competition, policymakers must leverage the broad range of economic policy tools at our disposal in a comprehensive fashion. Read FAL's three-part strategy to give the United States the best possible chance to outcompete the CCP and protect both U.S. economic and national security.
The International Monetary Fund (IMF) is currently moving towards a Special Drawing Rights (SDR) allocation equivalent to $650 billion U.S. dollars. An SDR allocation would primarily subsidize rich and middle-income countries while providing rogue regimes access to hard currency. The U.S. should oppose an SDR allocation. Read FAL's recommendations on how to make the process better.
Economic sanctions have become a powerful and regular tool of U.S. statecraft, applied to address a wide range of national security challenges, from terrorism and weapons proliferation to human rights abuses and corruption.
The Biden Administration should consider these six core principles to ensure we can continue to use our economic leverage against our adversaries.