The focus on foreign (economic) policy for the middle class remains a key organizing principle for the Biden administration, but so far it has seemed more powerful rhetorically than in implementation. In part this reflects the fact that a key element of foreign policy for the middle class involves making changes at home via redistribution and investment that would reduce vulnerabilities of Americans. The Biden Administration, for example, has focused not only on using restrictive geoeconomics tools like sanctions, export controls, and investment screening but has also focused on ways it can invest in new capabilities and alternatives at home and abroad. The America Competes Act (previously the U.S. Innovation and Competition Act) that incorporates the CHIPS act is part of this. Boosting spending on STEM R&D at home and some additional spending in coordination with allies in Asia to counter China rather than primarily relying on economic restrictions. The U.S. Treasury has focused on improving global tax treatment and highlighting measures to reduce vulnerability to money laundering in the U.S.—not just highlighting vulnerability abroad.
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