New Economic Statecraft: Industrial Policy in an Era of Strategic Competition*

Much has been made in the scholarly literature concerning the potential for renewed great power competition to reshape the global order. Much of this analysis has focused on the security challenges posed by this shift—leaving the economic dimensions of this competition underdetermined focused, as it is, on economic sanctions. This chapter combines insights from political economy and security studies to consider the variety of economic tools that states might deploy in pursuit of their security—from regulation to industrial policy. It also presents a theoretical framework to study the determinants of economic statecraft.