President Biden’s $6.9 trillion fiscal year 2024 budget request puts an emphasis throughout on out-competing China by increasing investments in domestic manufacturing and infrastructure, while maintaining a strong US presence in the Asia Pacific.
“China is the United States’ only competitor with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military, and technological power to do it,” according to the President’s introduction to his budget.
“During these unprecedented and extraordinary times, the Budget requests both discretionary and mandatory resources to out-compete China and advance American prosperity globally.”
The State Department’s Budget calls for implementing the Administration’s “invest, align, compete” strategy towards China by proposing $400 million in discretionary funding to counter specific problematic Chinese behaviors globally through the Countering PRC Influence Fund.
In addition, the budget includes a new, multifaceted interagency mandatory proposal to Out-Compete the PRC. This includes $2 billion to support high-quality, strategic “hard” infrastructure projects globally; $2 billion to strengthen Indo-Pacific economies and support US allies in pushing back against predatory efforts; $2 billion for a new revolving Fund at the Development Finance Corporation to boost equity investments, and $7.1 billion over 20 years to support the renewal of the Compacts of Free Association.
“Our Fiscal Year 2024 Budget will allow us to implement the Biden-Harris Administration’s vision to use trade to pursue resilient, sustainable, and inclusive economic growth, while increasing America’s competitiveness on the global stage,” US Trade Representative Katherine Tai commented.
The Commerce Department would receive $12.3 billion in discretionary funding and $4 billion in mandatory funding. Commerce’s budget emphasizes US manufacturing, including $21 million to establish a Supply Chain Resiliency Office within the International Trade Administration.
ITA also would get $5 million to assist the Treasury Department in the possible creation of a program to address national security risks associated with outbound investments, which would prevent US capital and expertise from financing advances in critical sectors that undermine US national security while not placing an undue burden on US investors and businesses.
The budget includes $3 million to support ITA’s engagement with the 13 Indo-Pacific Economic Framework and $420 million for ITA’s Global Markets, which includes an additional $17 million to support US export competitiveness and enhance the US’ ability to counter unfair trade practices and economic coercion by China.
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