Washington, April 10: The United States must aggressively promote its private sector in global markets to counter China’s growing influence. Deputy Secretary of State Christopher Landau emphasized that commercial diplomacy is a “cornerstone” of U.S. foreign policy.
Landau argued that economic engagement should be at the heart of both geopolitical competition and long-term global stability. He stated that Washington needs to better activate its businesses for competition abroad.
In his address at the Atlantic Council’s Global Prosperity Forum, he posed a critical question: “Every day I wake up asking… how do we ensure that the American private sector is outpacing Chinese entities in every corner of the world?”
He acknowledged that while many countries prefer American companies, they often turn to China due to its persistent presence and financial support. “You cannot defeat something that is ‘nothing’ with nothing. The Chinese are here… where is the American private sector?” he noted.
Landau argued that Washington must eliminate barriers such as risk perception, lack of information, and complex regulations that deter U.S. companies from investing abroad. “We may be overestimating some risks,” he added, stressing that the government should assist companies in accurately assessing and mitigating these risks.
His approach centers on a “three pillars” commercial diplomacy strategy: expanding export markets, promoting U.S. investment abroad, and attracting foreign direct investment to the U.S.
“The overall goal is to make our country more prosperous,” he said, emphasizing that economic engagement is not a zero-sum game. The aim is to find ‘win-win’ solutions that benefit both sides.
He dismissed criticism that a strong commercial focus makes U.S. foreign policy too transactional. “All relationships are based on some sense of mutual benefit,” he stated.
Landau pointed out that the Western Hemisphere remains a “natural center” for U.S. engagement due to proximity and supply chain integration. He identified Venezuela as a long-term opportunity, describing it as a “very, very rich country” that has seen a sharp economic decline.
He argued that economic development can help stabilize politically unstable regions. “Economic prosperity is a key element in almost all conflicts,” he said, citing examples where investment projects have helped reduce political divisions.
Regarding global conflicts, Landau mentioned that the U.S. is working towards a “sustainable and effective ceasefire” in the Middle East, adding that Washington has “effectively achieved” its military objectives of diminishing adversaries’ capabilities.
He also emphasized the importance of access to capital in developing economies, calling it the “lifeblood of the entire system.” He appealed for better coordination between government and businesses, asking corporate leaders, “What can I do for you to make your job easier?”
The forum highlighted a growing consensus among policymakers and financial institutions that private capital will be crucial for global development. Speakers noted that most new jobs in emerging markets are expected to come from the private sector, not governments.
In recent years, the U.S. has placed greater emphasis on economic strategy alongside traditional diplomacy, particularly in response to China’s Belt and Road Initiative. Washington has expanded tools like the U.S. International Development Finance Corporation to support foreign investment and manage risks.
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