The Reemergence of Industrial Policy as a Foreign Policy Tool
Industrial policy has returned to the forefront of foreign policy as nations seek to secure supply chains, boost technological competitiveness, and Naga169 terpercaya reduce strategic vulnerabilities. Once viewed primarily as a domestic economic issue, industrial policy is now deeply intertwined with global geopolitics.
Governments offer subsidies, tax incentives, and research funding to strengthen key industries such as semiconductors, renewable energy, pharmaceuticals, and advanced manufacturing. These initiatives influence foreign investment flows, trade relationships, and technological alliances. Countries also negotiate industrial cooperation agreements to coordinate innovation programs and share manufacturing capabilities.
Supply chain security is a major driver. Diplomatic efforts focus on diversifying suppliers, coordinating stockpiles, and creating trusted production networks among allied nations. These partnerships reduce dependence on rival states and enhance resilience during global disruptions.
Industrial policy also shapes trade diplomacy. Nations negotiate export controls, tariff arrangements, and rules-of-origin frameworks to protect strategic industries. These policies can generate friction, particularly when subsidies distort global markets or impact foreign competitors.
Despite challenges, industrial policy remains essential for navigating technological rivalry and economic transformation. By integrating industrial strategy with foreign policy, nations can strengthen their economic sovereignty while maintaining cooperative international relationships.