International Security & Defense

The U.S. position in the global value chain puts it at a disadvantage, and Washington's confrontational policies are making things worse.

This piece is a series in the Defense, Emerging Technology, and Strategy (DETS) Program’s analysis on the war in Ukraine, including a corresponding policy brief on Ukraine’s Battlefield Technologies and Lessons for the U.S. published in July 2023. 

Power transitions affect a state’s ability to exercise economic statecraft. As a dominating and a rising power approach parity, they face structural incentives to decouple their economies. This decoupling affects business-state relations: high-value businesses within the dominant power tend to oppose their state’s economic statecraft because of its costs to them, whereas low-value businesses within the rising power tend to cooperate because they gain from it. 

China leverages its market in a form of “predatory liberalism” that weaponizes the networks of interdependence created by globalization. ne response to China’s bullying would be for its targets to form an alliance to retaliate against China’s high-dependence trade should Beijing act against any alliance members. 

Stephen Walt analyzes the priority that the United States should place on competing with China by asking and answering five questions.

The European Union is planning to adopt semiconductor export controls, restrictions on outbound investment in China, and new rules to reduce the European market share of Chinese renewables. This strategy brings Brussels' into closer alignment with Washington and is likely to increase tensions with Beijing significantly.

The half-century since the official demise of the Bretton Woods system of fixed exchange rates has shown the benefits of what replaced it. While some may feel nostalgic for the postwar monetary system, its collapse was inevitable, and what looked like failure has given rise to a remarkably resilient regime.

Stephen Walt offers some brief foreign-policy advice for the newest members of the U.S. legislature.

Joseph Nye writes: From an American perspective, it is just as dangerous to underestimate Chinese power as it is to overestimate it. While hysteria creates fear, discounting China's recent progress and future ambitions could lead the United States to squander its own long-term advantages.

Stephen Walt writes that because warfare is inherently destructive and often uncertain, realists tend to be wary of idealistic crusades and mindful of the danger of threatening what others regard—justifiably or not—as vital interests.