Why Openness Could Boost American Competitiveness
American Businesses Need More Foreign Capital and Know-How The CEO of Ford Motor Company in Romulus, Michigan, emphasized in February 2023 that American businesses require greater access to foreign capital and technical expertise to remain competitive globally. Brian Deese, who served as Director of the National Economic Council from 2021 to 2023 and is now an Innovation Fellow at MIT, argues that welcoming Chinese investment and knowledge transfer could strengthen U. S. industrial capacity. He made these remarks during a period of renewed focus on revitalizing domestic manufacturing through strategic international partnerships.
Deese points out that while protectionist policies have gained traction, they risk isolating American firms from vital sources of funding and innovation. He notes that Chinese enterprises have advanced significantly in areas like battery technology, electric vehicle production, and renewable energy systems—sectors critical to the U. S. economic transition. Allowing deeper collaboration, he suggests, would not mean surrendering control but rather creating structured opportunities for joint ventures and technology sharing under clear regulatory frameworks.
What Safeguards Would Protect National Interests?
Deese highlights that U. S. companies often struggle to scale new technologies due to high upfront costs and limited domestic investment in emerging fields. Foreign capital, particularly from economies with strong industrial policies like China, could accelerate deployment of clean energy infrastructure and next-generation manufacturing. He cites examples where international partnerships have lowered production costs and sped up innovation cycles in Europe and Asia. The goal, he stresses, is not to replicate foreign models but to adapt useful practices to American industrial needs while safeguarding national interests.
According to Deese, any framework for increased Chinese engagement must include robust oversight mechanisms to prevent unwanted technology transfer or undue influence. He proposes sector-specific limits, joint government-industry review boards, and transparency requirements for foreign-owned operations. These measures, he argues, would allow the U. S. to benefit from external expertise without compromising security or economic sovereignty. The approach mirrors historical precedents where controlled openness helped domestic industries evolve during periods of technological shift.
Frequently Asked Questions
Would letting China in increase the risk of intellectual property theft? Deese acknowledges this concern but argues that risks can be managed through strict legal agreements, monitoring systems, and focusing collaboration on non-core or pre-competitive research areas where mutual benefit outweighs exposure.
Could this lead to job losses in American industries? He contends that strategic foreign partnership often creates more jobs than it displaces by enabling companies to expand operations, adopt efficient technologies, and enter new markets—ultimately supporting workforce growth rather than undermining it.