Strengthening U.S. Competitiveness in Light of the PRC Challenge

Strengthening U.S. Competitiveness in Light of the PRC Challenge

In testimony before Congress over how to manage the U.S.-China relationship effectively, Secretary of State Antony Blinken said, “We do stand at an inflection point:”

“China represents the most consequential geopolitical challenge that we face today: a country with the intent, and increasingly, the capability to challenge our vision for a free, open, secure, and prosperous international order.”

Secretary Blinken said “free and open” means countries are free to choose their own path and their own partners; problems are dealt with openly, not coercively; rules are applied fairly; and goods, ideas and people flow lawfully and freely across the land, the seas, the skies, and cyberspace.

President Biden’s proposed budget for FY2024 gives the State Department the resources and the agility to make sure that order survives and thrives.

For one thing, it allows the United States “to up our game” in the crucial Indo-Pacific. That includes, Secretary Blinken said, deepening our diplomatic footprint with new missions and a surge of new positions, including in the areas of greatest contest with Beijing, like technology and economics.

“We’re not demanding that other countries ‘choose’ between us and China – but rather we aim to offer a more attractive choice,” he said. “That’s why the budget includes $2 billion in new investments in high-quality, sustainable infrastructure, rather than low-quality, opaque, extractive projects that leave countries mired in debt.”

The President’s budget also allows the United States to invest $2 billion in new investment to bolster Indo-Pacific economies and help the U.S. compete where the PRC has been dominant, including maritime security, clean energy, digital technology, and critical mineral mining.

In addition, the budget contains over $7 billion to extend economic engagement with the Freely Associated States [the Marshall Islands, Palau, and the Federated States of Micronesia] via the Compacts of Free Association.

“Altogether, these funding streams ensure that we can meet a generational challenge and demonstrate our long term commitment on issues that matter most to key countries in the region – so the United States remains the partner of choice,” he said.

“During this decisive decade, our efforts and investments,” said Secretary Blinken “will determine whether we succeed in advancing our shared affirmative vision for the international system, or whether the PRC can erode or replace the global rules and norms that guarantee peace, security and stability in the world.”