Peter Harrell on Bureaucratic Barriers to Competition
Nov 13, 2023
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Peter Harrell, Former Senior Director for International Economics and Competitiveness on the NSC and NEC, discusses decision-making challenges and the impact of urgency on government processes. He explores the differences between wartime and peacetime bureaucracy and the importance of addressing bureaucratic barriers in dealing with US-China competition. The podcast also highlights the global campaign and sanctions impact, as well as the Biden administration's approach to building a diplomatic coalition against China.
Bureaucratic barriers and insufficient capacity hinder progress in US-China relations, requiring structural changes and better data to inform decision-making.
Lessons from the US-Russia relationship can inform US-China policy, emphasizing the need for transparency, explanation, and effective policy tools to address challenges.
Deep dives
Building a Global Diplomatic Coalition on China
The Biden administration has focused on building a global diplomatic coalition to address the challenges posed by China. This has involved raising awareness of the issues through public and private discussions and building a narrative with senior officials. Efforts have been made to revive the G7 and engage with other platforms like the Quad and the IPF to bring together industrial allies and developing world partners. While diplomatic dialogue with China is important for communication, it should not slow down or hinder necessary actions. Explaining the actions taken can help minimize misunderstandings and overreactions.
The Role of Bureaucracy in US-China Relations
Bureaucratic sludge and insufficient capacity within agencies have been challenges in addressing US-China relations. Insufficient resources and differences of opinions can hinder decision-making processes and slow down progress. There is a need for better data and expertise to inform decision-making, especially in areas like the technological and economic relationship. Structural changes in the US government may be needed to handle the challenges of great power competition with China more effectively.
Lessons from the US-Russia Relationship
Lessons from the US-Russia relationship can inform US-China policy. Sanctions and export controls can have a drag on an adversary's efforts, as seen in Russia's case. However, they should not be used as a reason to delay or weaken necessary actions. Greater compliance efforts among companies exporting goods and technology, similar to anti-money laundering measures in the banking sector, could enhance the effectiveness of export controls. Transparency and explanation of actions to the Chinese government can help prevent misunderstandings and overreactions.
The Need for Policy Adaptation and Expertise
The US government needs to adapt its policy tools and structures to effectively address the challenges posed by China. The trade policy toolkit, in particular, requires more flexibility and statutory modernization to handle the complexity of the current global environment. Growing expertise in economic and technological analysis of the US-China relationship is also crucial for making informed decisions. Structural changes may be necessary to better align resources, strategies, and decision-making processes for long-term success in great power competition with China.