The Potomac Institute for Policy Studies and the Economic Statecraft Program at Texas A&M University, recently convened representatives from government, industry, and academia to discuss: "Navigating a Reset of the Global Economic Order" at the fifth Economic Statecraft Summit. Held amidst a government shutdown, the Summit focused on identifying and understanding major evolutionary issues associated with economic statecraft over the last 18 months.

Our researchers developed several policy recommendations delivered in the new report and identified three major paradigm shifts, found below:

Economic Security is National Security: The line between commercial activity and national defense has vanished. The use of tariffs, export controls on AI-enabling hardware (like advanced semiconductors), and targeted industrial policy are increasingly core foreign policy tools.

The Rise of State Intervention: The global economy is trending away from an open, market-driven system toward one marked by greater state activism. This has led to a strategic landscape of disruption and volatility, which our policymakers and private sector firms must learn to navigate.

The Private Sector is the Front Line: Private companies and their investment decisions are now critical front-line actors in economic competition. They need clearer, unified signaling from the US government to harmonize their business goals with national security objectives.