Global Business Briefing with Sarah Morgenthau, Special Representative for Commercial & Business Affairs, U.S. Department of State

The global economy is currently undergoing significant shifts, with emerging technologies and geopolitical tensions influencing trade and economic policies. As these new challenges arise, the U.S. is preparing for a shift in political leadership. To discuss the role and future of U.S. business competitiveness in this changing landscape, the Meridian Corporate Council hosted Ms. Sarah Morgenthau, Special Representative for Commercial & Business Affairs, U.S. Department of State, for a Global Business Briefing on December 12, 2024. Members of Meridian’s Corporate Council Working Groups used this opportunity to present their key findings and suggestions regarding five distinct issue groups. The session covered the rapid emergence of new technologies, the role of public-private collaboration, shifts in global trade dynamics, and more. 

These Were the Top Takeaways from the Program 

1. Critical Challenges with Critical Minerals 

The COVID-19 pandemic exposed significant vulnerabilities in global supply chains, particularly in critical minerals, where China secured control over much of the processing. To address this, there is a pressing need for increased domestic investment and processing of these minerals in the U.S., though this approach comes with high costs and risks. Strengthening specialized trading groups focused on critical minerals will be crucial, as these relationships are often difficult to negotiate without the proper departmental infrastructure to manage them. In regions like Angola, there is a growing preference for U.S. investment and aid over Chinese involvement, highlighting opportunities for the U.S. to deepen its economic ties and secure more reliable supply chains for essential resources. 

2. Greater Innovations in Health

Regulatory bodies continue to pose significant challenges to business growth, particularly in sectors like biotech and pharmaceuticals, where geopolitical tensions have further complicated operations. To support continued progress, it is essential to develop clear, country-specific guidelines, as FDA approval alone is no longer sufficient for companies seeking to expand globally. Strengthening inter-agency coordination will also be crucial in streamlining regulatory processes and ensuring that companies can navigate the complex landscape of international regulations more effectively. This approach could help alleviate barriers to growth and foster a more supportive environment for innovation in these industries. 

3. The U.S. at the Forefront of Energy

The energy sector is increasingly interconnected with advancements in AI and technology, creating new opportunities for innovation and efficiency across various industries. While China has financed the most energy projects globally, the U.S. must now step forward by offering affordable clean energy alternatives. To compete effectively, the U.S. needs to develop and promote broad solutions with a strong infrastructure base that can address the growing demand for sustainable energy both in the continental United States and abroad, to the many foreign governments currently looking to China for energy assistance. Additionally, improving cross-departmental coordination throughout the lifecycle of energy projects is crucial, as the current system is overly complex. Streamlining these processes could enable better integration and help prioritize American energy solutions on the global stage. 

4. AI Regulation on the Horizon 

AI technology regulation in the U.S. is mostly being shaped by the Biden administration's executive orders, as there is still a lack of nationwide regulation for AI in the U.S. This lack of a comprehensive framework contrasts with global trends, as many countries are introducing their own policy measures to govern AI development and deployment. To bridge this gap, the U.S. must coalesce experts in the technology to shape comprehensive AI regulations as well as find the most ideal ways to positively incorporate the technology. Creating an online resource app that showcases positive AI use examples, helping businesses and governments navigate the evolving landscape, could also help the U.S. become a principal figure in the AI field. As the global regulatory environment around AI continues to grow, the U.S. may need to adopt a more cohesive national policy to remain competitive and ensure responsible AI use. 

5. U.S. Business Competitiveness Leads the Charge 

The future of U.S. business competitiveness will be shaped by the intersection of emerging technologies, shifting global dynamics, and evolving regulatory landscapes. The rapid advancements in AI are creating new opportunities for growth, but the lack of nationwide AI regulation in the U.S. leaves it behind global competitors, who are implementing their own AI policies. Similarly, exposed vulnerabilities in global supply chains, particularly in critical minerals, leave China as the dominant processing power. In all these industries it is essential that the United States starts heavily incorporating the private sector, enabling the U.S. to properly situate itself as a primary player in the market and strengthening business competitiveness nationally. Initiatives like the Economic Diplomacy Action Group, a channel for the private sector to be in direct communication with top officials at the relevant government agencies, are set to be incorporated in 2025 and could prove to be exactly what both the U.S. and the private sector need to advance in the industries that are now shaping the world economy. 

Project summary

Global Business Briefing with Sarah Morgenthau, Special Representative for Commercial & Business Affairs, U.S. Department of State | December 2024
Impact Areas:	Business and Trade
Program Areas:	Corporate Diplomacy