·
Core
idea: Trade
is no longer neutral—it is increasingly shaped by geopolitics and great power rivalry,
especially between the U.S. and China.
·
Problem
with current system:
Traditional free trade agreements (FTAs) and the global system under the WTO
are failing to address
non-market practices and strategic competition, particularly
from China.
·
China
factor:
China’s rise has reshaped
global trade, combining market scale, manufacturing dominance,
and state-backed policies that challenge existing rules.
·
FTA
limitations:
o Treat all sectors equally (ignoring
strategic industries)
o Fail to address supply chain dependencies
o Cannot handle non-tariff barriers
effectively
o Struggle with enforcement against large
non-market economies
·
Definition: A new model of trade agreements focused
on technology, security,
and strategic industries, not just tariff reduction.
·
Purpose:
o Strengthen alliances
o Build economic resilience
o Maintain leadership in advanced
technologies
·
Key
features:
o Binding agreements (not loose
partnerships)
o Focus on “national power industries”
(e.g., semiconductors, AI, biotech)
o Combine trade, technology, and security
policies
·
Zero-for-zero
tariffs among partners
·
Integration
of digital economies (data flows, no localization barriers)
·
Joint
R&D in advanced technologies (AI, quantum, semiconductors)
·
Easier
movement of high-skilled talent
·
Cooperation
in defense and dual-use technologies
·
Reciprocal
trade restrictions against unfair barriers
·
Coordinated
investment screening (limit risky Chinese investments)
·
Aligned
export controls on critical technologies
·
Joint
investigations into unfair trade practices
·
Collective
action against IP theft and counterfeit goods
·
Joint
fund to replace reliance on Chinese technology
·
Coordinated
bans on firms violating IP rules
·
Shared
counterintelligence to protect innovation
·
Limits
on trade agreements with non-market economies without partner consent
·
From
free trade → strategic trade:
Focus shifts from efficiency to security,
resilience, and technological leadership
·
Alliance-based
approach: No
single country (including the U.S.) can counter China alone
·
Geopolitical
reality: Trade
policy is now a tool of power
competition, not just economic growth
·
U.S.
must rebuild trust with allies after tariffs and policy shifts
·
Allies
must align on viewing China as a strategic challenge
·
Political
will required to sustain long-term cooperation
·
Balancing
openness with protection of critical industries
The report argues that
the future of global trade lies in strategic,
alliance-driven techno-economic agreements, where technology, security, and geopolitics
are as important as trade itself.