National security is defining Globalisation 2.0

The Biden administration has been uncommonly vigorous in shaping American policy to maintain American hegemony or Globalisation 2.0 American Policy AUKUS Geopolitics Global Supply Chains Globalization 2.0 National Security Quad National security seems to have become the motif of Globalisation 2.0, like free trade was that of its predecessor. It was not surprising when, in April, the United States (US) Treasury Secretary Janet Yellen made it clear that national security would always trump economic considerations in relations with China. Though the remarks were aimed at reassuring China about the recent policy moves restricting technology to Beijing, they underscored Washington’s new way of looking at things. Even earlier, the Chinese had made it clear that national security was the key element in its global paradigm. A paper by Merics noted that while “comprehensive national security” was officially introduced in 2014, it now comprised 16 security areas considered essential for China’s development and future. Xi has upgraded legal and institutional support systems and a National Security Commission (NSC) was set up in 2014 to coordinate security work across party and state organs. According to the paper, Xi has made “national security into a core component of party ideology.” Originally, it comprised areas like political, territorial, military, economic, cultural, technological, and cybersecurity; now it includes information security, resource security, biosecurity, and space security. Further, Xi has upgraded legal and institutional support systems and a National Security Commission (NSC) was set up in 2014 to coordinate security work across party and state organs. Besides a central NSC, there are NSCs down to the provincial and local levels. At the end of last month, the first meeting of the National Security Commission after the 20 th Party Congress took place. The meeting emphasised that “the complexity and difficulty of the national security issues we currently face have significantly increased.” It called on the need to adhere to “bottom line thinking and worst-case scenario thinking”. It also said that “it is necessary to guarantee the new development pattern with the new security paradigm, take the initiative to shape the favourable external security environment.” The readout said that the meeting reviewed and approved documents on accelerating the construction of a national security risk monitoring and early warning system and on strengthening national security education. National security has long shaped the US worldview. The events of the past several years have brought a different nuance to it and the target—China—has become clearer. In the past, geopolitics and geoeconomics had their distinct spheres. But beginning with the Trump tariff wars against Beijing, a shift has taken place. The Biden administration has retained the tariffs but made reshoring and friendshoring issues of national security. It has initiated a new industrial policy that has accompanied tightened restrictions on exports to China, all in the name of national security. And its October 2022 National Security Strategy is clear that China is “the only competitor with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military and technological power to do it.” The Biden administration has retained the tariffs but made reshoring and friendshoring issues of national security. In statements and declarations, US policymakers have sought to play down the significance of these steps. But no matter from which angle it is viewed, this looks like what Globalisation 2.0 will be. Yellen in her remarks cited above noted that, “We seek a constructive and fair economic relationship with China.” She acknowledged that there would be an economic impact from the US policies, but “they are motivated solely by our concerns about our security and values.” Speaking at the end of April, Jake Sullivan , the US National Security Advisor, laid out the elements of what Globalisation 2.0 would look like. It would involve a new industrial and innovation strategy within the US and its partners around. It would promote “diversified and resilient global supply chains” and would create a “fairer and more durable economic order.” As for China, the US was taking some “tailored measures” that were “premised on straightforward national security concerns.” More importantly, the US was not thinking of “decoupling” but, “de-risking and diversifying” its supply chains. The US controls would, as in the past, be “narrowly focused on technology that could tilt the military balance.” The whole idea was to manage competition responsibly. The “unlimited” partnership between Russia and China has also triggered concerns that the latter could use the Ukraine events as a template for its approach to Taiwan. This has served to consolidate […]

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