AMERICAN BUSINESS leaders and policymakers cannot afford to indulge in unrealistic expectations but need to face geopolitical and geo-economic realities. The United States may be the world's sole superpower at this moment in time, but if we do not address our growing fiscal and current account deficits and if we mismanage our relations with other key actors--notably China--then American leadership within the global community will be seriously weakened. For America to project leadership abroad, this administration and Congress must be prepared to take the high road and demonstrate leadership at home. Too often in recent years, shrill rhetoric, political expediency and a focus on short-term issues have distracted us from the larger picture.
For the United States to secure and advance its national interests, it needs to conduct a foreign policy that is consistent and understands the importance of carefully managing economic relations as a way to build shared interests with other states. It is very true that there can be significant differences between the United States and other major powers over values and political systems, but it is important that we never allow our trading and economic relations to become hostage to these differences. Overcoming legacies of mistrust and hostility is another benefit that can emerge from closer economic and trading ties.
