Trade – US Pushes Private Sector to Compete With China Globally
Trade – The United States should make stronger use of its private sector in international markets to counter China’s growing economic presence, Deputy Secretary of State Christopher Landau said, underlining that business engagement is now central to American foreign policy.
Commercial Diplomacy Takes Center Stage
Speaking at the Atlantic Council’s Global Prosperity Forum, Landau described commercial diplomacy as a core pillar of the country’s global strategy. He emphasised that economic involvement is no longer separate from geopolitics but deeply tied to long-term global stability and influence.
According to him, the United States must actively support its companies in expanding abroad if it wants to remain competitive. He framed the issue as a daily priority, questioning how American firms can consistently outperform Chinese companies in international markets.
Challenges Facing US Businesses Abroad
Landau acknowledged that many countries show a preference for American businesses but often end up partnering with China due to its consistent engagement and accessible financing. He noted that the absence of US companies in key regions allows China to strengthen its position.
He also pointed out several barriers that discourage American firms from entering foreign markets. These include perceived risks, lack of reliable information, and complicated regulatory systems. Landau suggested that some of these concerns may be overstated and that the government should play a greater role in helping businesses better understand and manage risks.
A Three-Part Strategy for Growth
At the heart of his approach is a three-part framework aimed at strengthening economic outreach. This includes expanding export opportunities, encouraging US companies to invest internationally, and attracting foreign investment into the United States.
Landau stressed that the broader goal is to boost economic prosperity rather than engage in zero-sum competition. He highlighted the importance of creating mutually beneficial partnerships, where both the United States and its partners can gain from economic cooperation.
Responding to Criticism of Economic Focus
Addressing concerns that a stronger emphasis on commercial interests could make foreign policy overly transactional, Landau argued that all international relationships naturally involve shared benefits. He maintained that economic collaboration is a practical and necessary component of diplomacy.
Focus on the Western Hemisphere
Landau identified the Western Hemisphere as a key area for US engagement, citing geographical proximity and existing supply chain connections. He pointed to Venezuela as a country with significant long-term potential, despite its current economic challenges, describing it as resource-rich but economically weakened.
Economic Growth as a Tool for Stability
Beyond competition, Landau highlighted the role of economic development in reducing political instability. He argued that improving economic conditions can help ease tensions in fragile regions, noting examples where investment initiatives contributed to bridging political divides.
Updates on Global Conflict and Capital Access
On international conflicts, Landau said the United States is working toward a lasting ceasefire in the Middle East, adding that key military objectives aimed at weakening opposing forces have largely been achieved.
He also emphasised the importance of financial access in developing economies, calling capital the foundation of economic systems. Without sufficient investment, he noted, growth and stability remain difficult to achieve.
Strengthening Government-Business Coordination
Landau called for closer collaboration between government institutions and private companies. He described a more proactive approach where officials actively support businesses by addressing their concerns and simplifying processes that hinder global expansion.
The forum discussions reflected a broader agreement among policymakers and financial leaders that private sector investment will play a decisive role in future global growth. Experts noted that most job creation in emerging markets is expected to come from businesses rather than governments.
US Strategy in a Changing Global Landscape
In recent years, the United States has placed increasing emphasis on economic strategy alongside traditional diplomacy, particularly in response to China’s Belt and Road Initiative. Efforts have included expanding financial tools such as development finance programs to support overseas investments and reduce risks for American companies.
Landau’s remarks highlight a shift toward integrating economic and diplomatic efforts, with the private sector positioned as a critical driver of global influence and stability.