Biden's China strategy designator cannot fail to mention the shadow aide of the "small courtyard and high wall" - national security adviser Sullivan, who is widely rumored to be in the market, and it is not difficult to conclude from the analysis of news at all levels: he has replaced Blinken as the main formulator of the Biden administration's China policy. Rumors of an alternative to Blinken are also rife in Washington.
Sullivan had given a speech at the Brookings Institution in April '23 on the logic of his China policy. This provides a better understanding of Sullivan's strategy. As the next strong candidate for secretary of state, it is necessary to learn more about Sullivan and his logic.
The full text of Sullivan's speech is available on the webpage
This is also a very wonderful national policy speech, which is worth reading carefully.
Speaker: U.S. National Security Advisor Sullivan
Excerpts from the speech: The speech mentioned the four major challenges facing the United States and the solutions to address them.
1. The U.S. industrial base has been hollowed out: Policy assumptions over the past few decades have always been efficient in allocating capital, causing many supply chains and associated jobs to move overseas.
2. Adapting to the new geopolitical and security competitive environment: Past international economic policies that relied on economic integration would make countries more responsible and open, but this is not the case. For example, China continues to massively subsidize traditional industrial sectors and future critical industries.
3. Tackling the accelerating climate crisis: A just and efficient energy transition is needed.
4. Challenges posed by inequality: The assumption that growth from trade would be inclusive has not been extended to many wage earners.
1. Building a New Industrial Base at Home: Implement a modern U.S. industrial strategy that identifies specific sectors critical to economic growth and national security.
2. Work with partners in traditional allies and emerging economies: ensure they also have industrial capacity, resilience, and inclusiveness.
3. Go beyond traditional trade agreements: build new values-based international economic partnerships, build resilient supply chains, and address core challenges.
4. Invest in emerging economies: capital cooperates with the US diplomatic strategy to confront China.
5. Small courtyards and high walls to protect national security: Work with allies to restrict the export of the most advanced technology and key technologies to China. Others continue to cooperate with China, but emphasize China's active and responsible participation and cooperation.
Speech Summary: Rebuilding the economic and trade system, emphasizing transparency, security, fairness and reciprocity; The NEP supports the middle class, unites allies, and provides policy and investment support from the government; Strengthening U.S. financial leadership calls for bipartisanship, and broader rules-based international cooperation.