How the Government Champions International Standards for U.S. Economic Power

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From the smartphone in your pocket to the safety features in your car and the quality of the air you breathe, agreed-upon rules ensure safety, reliability, and interoperability across borders, as explained by Standards Council of Canada and Alooba’s standards overview.

At the heart of the United States’ efforts to shape and leverage this critical system is the Department of Commerce. It serves as the nation’s primary advocate and technical authority, working to ensure that the U.S. not only participates in but also leads the development and promotion of these standards.

This leadership is not merely a technical exercise; it is a core component of a national strategy to secure American economic prosperity, foster innovation, and protect national security in an increasingly competitive world.

What Are International Standards?

International standards form the bedrock of global trade and technological advancement. They are the quiet facilitators of a connected world, providing a universal framework that allows businesses, consumers, and governments to operate with a shared set of expectations for quality, safety, and efficiency.

Defining the Blueprint for a Globalized World

At their core, international standards are formally agreed-upon blueprints that specify how to make a product, manage a process, deliver a service, or supply materials, according to the Standards Council of Canada. They are technical guidelines and rules accepted and used worldwide to ensure that products, services, and systems are safe, reliable, and efficient.

The concept is not new; its importance became acutely clear with the onset of the Industrial Revolution. The need for high-precision machine tools and, critically, interchangeable parts, drove the first efforts toward standardization.

A landmark example from 1841 is Joseph Whitworth’s standardized system for screw thread measurements, which was voluntarily adopted by companies across Britain and later in other countries, becoming the first unofficial national standard and a precursor to the international system we know today, as Wikipedia details.

Without such standards, commerce would grind to a halt. Imagine a world where light bulbs from one company did not fit the sockets of another, or where adjacent buildings had completely incompatible electrical systems because they were installed by different firms—a common problem in the late 19th century.

Standards solve these problems by creating uniformity. It is important to distinguish these formal international standards from what are sometimes called “global standards.” The latter can refer to specifications developed by private sector entities, like non-governmental organizations or for-profit companies, often without the rigorous, transparent, and consensus-driven process that defines true international standards.

The standards promoted by the Department of Commerce are those developed through a formal, collaborative process designed to represent a global consensus.

Who Writes the Rules?

The development of international standards is not a top-down decree from a single global authority. Instead, it is a meticulous, consensus-driven process led by independent, non-governmental organizations.

The most prominent of these are the International Organization for Standardization (ISO), which develops standards across a vast range of fields from quality management to environmental safety; the International Electrotechnical Commission (IEC), which focuses on electrical, electronic, and related technologies; and the International Telecommunication Union (ITU), a specialized UN agency that standardizes global telecommunications.

Together, these three organizations form the World Standards Cooperation alliance, as Wikipedia explains and the Standards Council of Canada outlines.

The creation of a new international standard follows a transparent, multi-step process designed to ensure broad agreement and technical validity:

Proposal and Approval – The process begins when a national standards body, responding to a market or societal need, proposes a new standard for development. This proposal must be approved by other national member bodies.

Development – Once approved, a technical committee of global experts from industry, academia, government, and consumer groups is formed. These experts collaborate to develop a draft standard. In countries like Canada, “mirror committees” are established to formulate the national position on standards that are a national priority.

Review – The draft standard is circulated to all national standards bodies and made available for public review and comment. This open consultation ensures that a wide range of stakeholders can provide input.

Revision – The technical experts review all comments and revise the draft standard to incorporate feedback and build consensus.

Vote and Approval – The final draft is put to a vote among the national standards bodies. Approval requires a significant majority, ensuring the standard has broad international support.

Publication – Once approved, the standard is officially published by the respective organization (e.g., ISO or IEC).

This open, collaborative, and consensus-based approach is fundamental to the legitimacy and widespread adoption of international standards, as GenomsYs notes. It ensures that the final document is not the product of a single company or country’s interest but a balanced representation of global expertise and stakeholder needs.

This very process, rooted in principles of openness, transparency, and balance of interests, reflects a market-driven, democratic philosophy of governance, according to Cornell Law School. It stands in contrast to top-down, state-directed systems where a central government authority dictates standards, as the Standards Portal explains.

This philosophical difference is not merely academic; it forms a key point of friction in the modern geopolitical landscape, where the method of creating standards has become as contested as the standards themselves.

Why They Matter: Benefits of a Common Language

The adoption and use of international standards generate profound technological, economic, and societal benefits that touch nearly every aspect of modern life, according to CG Business Consulting.

For Society and Consumers – When products and services conform to international standards, consumers can have confidence that they are safe, reliable, and of good quality. This builds trust and enhances public welfare. For example, ISO standards for toy safety, road safety, and secure medical packaging directly contribute to making the world a safer place.

Furthermore, international standards on air, water, and soil quality, as well as those governing emissions and the environmental aspects of products, are crucial tools in global efforts to preserve the environment and protect public health, as multiple sources document. By supporting the United Nations Sustainable Development Goals, these standards help address global challenges like climate change and public safety, according to the Standards Council of Canada and GC Certification.

For Businesses – For companies, international standards are powerful strategic tools. Adherence to standards like the ISO 9001 quality management system helps businesses optimize their operations, reduce waste, and increase productivity, leading to significant cost savings, as CG Business Consulting and AMCS Group explain.

This operational excellence translates into higher quality products and services, which enhances customer satisfaction and can lead to increased sales and market share, according to multiple business sources.

Perhaps most importantly, international standards break down technical barriers to trade. When countries align their requirements with international standards, it becomes far easier and cheaper for businesses to sell their products in multiple markets without having to undergo duplicative testing and certification for each one.

This opens up global markets, especially for small and medium-sized enterprises that may lack the resources to navigate a patchwork of different national regulations, as MAS Economics and CG Business Consulting document.

For Governments – International standards are a vital resource for governments in developing effective public policy and regulations. Because standards are developed by global panels of experts, governments can reference them in their national laws and regulations, thereby benefiting from world-class expert opinion without having to convene these experts directly.

This practice, known as “incorporation by reference,” is a cornerstone of efficient governance. Furthermore, by integrating international standards into national regulation, governments help ensure that the requirements for imports and exports are consistent across the globe.

This facilitates the smooth movement of goods, services, and technologies from country to country, fostering a stable and predictable environment for international trade and economic growth.

The Commerce Department’s Strategic Approach

The U.S. Department of Commerce is tasked with a broad mission: to create the conditions for economic growth and opportunity by promoting job creation, economic growth, sustainable development, and improved standards of living for all Americans, according to USA.gov.

Within this mandate, the promotion of international standards is a critical and sophisticated function, executed through a strategic, two-pronged approach that combines policy and diplomacy with deep technical expertise.

The Policy Powerhouse: International Trade Administration

The International Trade Administration is the Commerce Department’s lead agency for promoting world trade and strengthening the international trade and investment position of the United States, as documented in the Federal Register. Established in 1980, the ITA serves as the U.S. government’s primary resource for American businesses competing in the global marketplace, according to Trade.gov.

Its role in the world of standards is focused on policy, advocacy, and enforcement.

Key functions of the ITA related to standards include:

Policy Advising and Coordination – The ITA’s standards experts are the federal government’s principal policy advisors on standards and conformity assessment (the processes used to verify that a product meets a standard), as Trade.gov explains.

They actively engage with a wide range of stakeholders, including individual U.S. companies, entire industry associations, standards developing organizations, and foreign regulators. This continuous dialogue is aimed at promoting the use of international standards and ensuring that U.S. perspectives are heard in global policy discussions, according to Trade.gov resources.

Trade Agreement Negotiation and Enforcement – The ITA, through its legal arm, the Office of the Chief Counsel for International Commerce, plays a crucial role in the negotiation and enforcement of international trade agreements, as Commerce archives detail.

This includes ensuring that bilateral and multilateral agreements, such as those within the World Trade Organization, contain strong provisions related to standards. These provisions are designed to promote market access, encourage good regulatory practices among trading partners, and prevent the use of standards as disguised protectionism, according to Trade.gov documentation.

Breaking Down Technical Barriers to Trade – A central part of the ITA’s mission is to ensure fair trade by identifying and eliminating trade barriers. One of the most significant types of non-tariff barriers is the “technical barrier to trade,” which occurs when a country uses its own unique standards, technical regulations, or testing procedures to block or disadvantage imported products, as Trade.gov explains.

The WTO Agreement on Technical Barriers to Trade is designed to prevent such practices by encouraging countries to base their regulations on international standards. The ITA’s Trade Agreements Compliance Program works directly with U.S. companies to investigate and resolve these barriers, leveraging trade agreements to engage foreign governments and open markets for American exporters, according to Trade.gov resources.

The Technical Authority: NIST

While the ITA handles the policy and diplomacy of standards, the National Institute of Standards and Technology provides the indispensable scientific and technical foundation. As the National Metrology Institute for the United States, NIST is the ultimate authority on the science of measurement.

Everything from the precise atomic clocks that synchronize our networks to the advanced materials in microchips relies on the foundational measurement science that NIST provides, according to NIST.gov. This work is the bedrock upon which all technical standards are built; without accurate and reliable measurements, standards would be meaningless.

NIST’s role in the international standards ecosystem is multifaceted and crucial:

Pre-Standardization Research and Development – Long before a formal standard is written, the foundational science and technology must be developed. NIST is a world leader in conducting this “pre-standardization” R&D, particularly in critical and emerging technologies like artificial intelligence, quantum information science, cybersecurity, and next-generation communications.

This research provides the robust technical basis that allows U.S. industry to lead in the development of new international standards, as the White House fact sheet explains.

Developing Influential Frameworks and Guidance – NIST develops voluntary guidelines and frameworks that have a profound influence on both U.S. and international practices. The most prominent example is the NIST Cybersecurity Framework.

The CSF provides a flexible, risk-based approach for organizations to manage cybersecurity risks, as Alooba describes. While the CSF is a voluntary U.S. guideline and not an international standard itself, it is widely adopted globally.

It complements international standards like ISO 27001, which provides a more rigid, certifiable information security management system. Often, organizations use the free and adaptable NIST CSF as a starting point to build their cybersecurity programs before pursuing the more costly and formal ISO 27001 certification, as CyberSaint and OneTrust explain.

This demonstrates how NIST’s work can guide global best practices and prepare organizations for international standardization.

Federal and International Coordination – NIST serves as the federal government’s central coordinator for standards policy and information. Its Standards.gov portal provides resources for government, academia, and the public, helping them navigate the complex standards landscape.

NIST also represents U.S. interests through direct participation in international standards developing organizations, ensuring that the U.S. has a strong technical voice in the development of key standards, according to Standards Coordinating Body and NIST documentation.

AgencyPrimary Role in StandardsKey Activities
International Trade Administration (ITA)Policy, Advocacy, and Market AccessAdvising on standards policy, running the Standards Attaché Program, helping U.S. firms overcome technical barriers to trade, and ensuring compliance with trade agreements
National Institute of Standards and Technology (NIST)Technical Research and DevelopmentConducting pre-standardization research, developing technical frameworks (e.g., Cybersecurity Framework), participating in international SDOs, and leading the implementation of the national standards strategy

This structure creates a powerful synergy. NIST effectively “pushes” U.S. innovation and technical expertise into the global standards ecosystem through its world-class research and development, as government publications document.

This ensures that new international standards are often built upon a foundation of American technological leadership. Simultaneously, the ITA “pulls” foreign markets open for U.S. products that are built to these standards, according to Federal Register documentation.

It uses the tools of diplomacy, trade policy, and legal enforcement to ensure that international standards are adopted fairly and are not subverted by protectionist regulations designed to keep U.S. goods out, as Trade.gov explains.

Key Programs and Initiatives

The Department of Commerce translates its high-level strategy for international standards into concrete action through a series of targeted programs and initiatives. These efforts range from placing expert advisors in key foreign markets to leading a national charge to secure U.S. leadership in the technologies that will define the 21st century.

On the Front Lines: The Standards Attaché Program

A prime example of the International Trade Administration’s hands-on approach is its Standards Attaché Program. This program places U.S. standards experts directly within American embassies and consulates in key global economic hubs.

Currently, attachés are stationed in locations critical to U.S. trade, including Brazil, China, the European Union (based in Brussels), Mexico, Saudi Arabia, and South Africa.

These attachés serve as the “eyes and ears” for U.S. industry on the ground. Their mission is to monitor the development of new foreign standards and technical regulations that could potentially create trade barriers for American businesses.

They act as an essential resource and a direct point of contact for U.S. stakeholders—from individual companies to entire industry associations—that encounter standards-related problems in foreign markets. By providing real-time intelligence and direct advocacy within their host countries, the standards attachés are on the front lines of preventing and resolving trade obstacles before they can harm U.S. exports, according to Trade.gov resources.

A New Era of Competition: The National Standards Strategy

In recent years, the landscape of international standards development has become an arena of intense geopolitical competition. Recognizing that a purely reactive, market-driven approach may no longer be sufficient to secure U.S. leadership, the White House announced the United States Government National Standards Strategy for Critical and Emerging Technology in May 2023.

This strategy represents a formal, whole-of-government plan to proactively bolster American influence in the standards that will govern the technologies of the future, such as artificial intelligence, quantum computing, next-generation communications (6G), and biotechnology, according to Federal Register documentation and CSIS analysis.

The strategy is built on four key pillars:

Investment – Increase federal investment in the foundational, pre-standardization research and development that underpins new technologies.

Participation – Promote and enhance the participation of U.S. private sector stakeholders, academia, and other experts in international standards development activities.

Workforce – Strengthen and expand the U.S. standards workforce through enhanced education and training.

Integrity and Inclusivity – Reinforce the integrity of the international standards system by working with allies and partners to uphold principles of openness, transparency, and consensus.

The Department of Commerce, through NIST, has been designated as the lead agency responsible for coordinating the implementation of this vital national strategy, as NIST documentation and White House fact sheets confirm.

This formal designation marks a significant evolution in U.S. policy. It signals a shift from the nation’s traditional, decentralized standards posture toward a more coordinated, strategic approach driven by national security and economic competitiveness imperatives.

NIST’s Technical Leadership in Action

NIST’s role in executing the National Standards Strategy is not just administrative; it is deeply technical. The agency is at the forefront of developing the science that will shape the standards for the world’s most advanced technologies.

Post-Quantum Cryptography – One of the most significant long-term threats to global security is the development of quantum computers powerful enough to break the encryption that currently protects virtually all digital information, from financial transactions and government secrets to personal emails.

In a landmark proactive effort, NIST initiated a global competition in 2015 to develop new “post-quantum” encryption algorithms resistant to attack by both conventional and quantum computers, as Industrial Cyber and NIST news document.

After an eight-year process involving the evaluation of 82 submissions from cryptographers in 25 countries, NIST selected a suite of winning algorithms. In 2024, it began publishing them as official Federal Information Processing Standards.

The first three finalized standards are:

  • FIPS 203 (ML-KEM) – Based on the CRYSTALS-Kyber algorithm, this is the primary standard for general encryption used to protect information exchanged across public networks
  • FIPS 204 (ML-DSA) – Based on the CRYSTALS-Dilithium algorithm, this is the primary standard for digital signatures, which are used to authenticate identities
  • FIPS 205 (SLH-DSA) – Based on the SPHINCS+ algorithm, this is a backup digital signature standard using a different mathematical approach for added security

This monumental effort, which rallied the world’s top cryptography experts, ensures that a secure foundation will be in place to protect the global digital economy long before a cryptographically relevant quantum computer becomes a reality, as NIST and the World Economic Forum confirm.

Artificial Intelligence – NIST is deeply involved in shaping the standards that will ensure AI is developed and deployed in a safe, secure, and trustworthy manner. The agency developed the AI Risk Management Framework, a voluntary guide for organizations to better manage the risks associated with AI systems, according to ANSI and NIST publications.

This framework is already influencing global best practices and is being aligned with key international standards, as NIST’s AI standards page details.

Crucially, the U.S. plays a leading role in ISO/IEC JTC 1/SC 42, the joint technical committee of ISO and IEC that is the world’s primary body for AI standardization, according to JTC1 documentation and Wikipedia.

This committee is developing foundational international standards on everything from AI terminology and risk management to trustworthiness, bias, and governance, as UNESCO explains.

The United States, through the American National Standards Institute, holds the secretariat for SC 42, and the committee is chaired by an American, Wael William Diab. NIST experts actively participate in this committee, ensuring that U.S. technical expertise and values are embedded in the international standards that will govern one of history’s most transformative technologies, according to NIST documentation.

Impact on American Businesses

For American companies, from multinational corporations to main-street startups, international standards are a double-edged sword. On one hand, they offer a clear pathway to improved efficiency, enhanced credibility, and access to lucrative global markets. On the other, the process of achieving and maintaining compliance can present significant financial and operational challenges, particularly for smaller businesses.

Success Stories: The Upside of Adoption

The tangible benefits of adopting international standards are well-documented across U.S. industry, driving cost savings, innovation, and competitiveness.

For Large Corporations – The economic impact can be monumental. A prime example is the NAVSTAR Global Positioning System. Developed by the Department of Defense, the decision to make the GPS interface a public, global standard had a revolutionary effect.

It enabled significant economies of scale, supported military interoperability, and spawned countless commercial industries. While the program’s development cost over $12 billion, the strategic use of standardization produced a global economic impact that is too large to calculate, with benefits deemed “infinite,” according to Standards Boost Business.

More specific financial gains are seen in companies that adopt ISO standards for management systems. For example, by implementing the ISO 50001 standard for energy management, numerous U.S. and multinational firms have realized substantial savings, as Better Buildings Solution Center documents:

  • 3M saved $24 million over six years across 56 certified sites by improving energy performance
  • Hilton certified over 5,100 properties to ISO 50001, saving an astonishing $783.7 million over eight years
  • Nissan North America improved energy performance by 13.8% across three U.S. manufacturing sites

Dow Chemical and Chiquita used sustainability and environmental standards to not only reduce waste and pollution but also increase process yields by as much as 40%, generating hundreds of thousands of dollars in annual savings, according to NYU Stern research.

These cases demonstrate that standards are not just about compliance; they are a direct driver of operational excellence and profitability, as AMCS Group confirms.

For Small and Medium-sized Enterprises – While they may not operate on the same scale, SMEs also reap significant rewards from standardization. For many, achieving certification to a globally recognized standard like ISO 9001 (for quality management) is a crucial step for growth and market access, according to Gluu Business.

It signals to potential customers and partners that the company adheres to international benchmarks for quality and reliability, enhancing credibility and trust, as Meegle explains.

Real-world examples of U.S. SMEs benefiting from ISO 9001 include, according to 9001 Simplified case studies:

  • Semilink Materials – A semiconductor startup that used ISO 9001 certification to establish a quality management system from scratch, which was critical for boosting its operations and gaining access to the highly demanding semiconductor market
  • Kingpin Dynamics – A one-person engineering firm serving the automotive industry that achieved ISO 9001 certification in just one month. This move enhanced its appeal to larger clients and improved its operational efficiency
  • Environmental Painting Alternatives – A small painting services company that used ISO 9001 to streamline its operations and build greater trust with its clients

For these smaller firms, standards provide a framework to compete with larger players, formalize their processes, and unlock opportunities in global supply chains where such certification is often a prerequisite, as Risma Systems explains.

The Challenges of Compliance

Despite the clear benefits, the path to implementing international standards is fraught with challenges, and these burdens do not fall equally across all businesses.

Common Hurdles – Businesses consistently report several major obstacles when trying to implement ISO standards, according to Pacific Cert and Research Leap:

  • Lack of Awareness and Understanding – Employees and even management may not fully grasp the requirements or benefits of the standards, leading to a lack of buy-in
  • Resistance to Change – Implementation often requires altering long-standing processes and procedures, which can meet with internal resistance from employees concerned about increased workload or who are simply accustomed to old habits
  • Difficulty in Documentation – A critical part of ISO certification is documenting processes. For businesses that have historically operated with informal systems, this task can be daunting and time-consuming
  • Lack of Resources and Time – Perhaps the most significant barrier is the commitment of time, money, and personnel required for a successful implementation and certification program

The Cost Barrier – The financial costs associated with certification can be substantial and act as a major deterrent, especially for SMEs, according to Prime Target and Research.com.

These costs include fees for training, hiring external consultants, upgrading software and systems, and paying for the certification and ongoing surveillance audits, as ResearchGate documents.

A 2024 survey of large multinational enterprises found that they spent an average of $25.6 million annually on income tax compliance alone, with much of the complexity driven by international rules, according to the Tax Foundation.

While SMEs do not face costs of this magnitude, the data illustrates the immense financial resources that compliance can demand, resources that small businesses simply do not have.

The SME Disadvantage – This resource gap means that the burdens of compliance and trade barriers fall disproportionately on small and medium-sized enterprises. A U.S. International Trade Commission report found that trade barriers, including non-tariff measures like standards and regulations, disproportionately affect SMEs relative to large firms.

This creates a fundamental paradox. The government promotes international standards as a tool to help SMEs access export markets, as Commerce directives and USITC publications document.

However, the high cost of adopting those very standards can become a barrier in itself, preventing an SME from being able to afford to export in the first place. This “chicken-and-egg” problem highlights a potential gap in U.S. policy.

While agencies like the ITA advocate for standards harmonization, there is a clear need for programs that also provide direct financial and technical assistance to help SMEs overcome the initial hurdle of compliance costs, thereby unlocking the export potential that standards promise.

Global Competition and Challenges

The world of international standards is no longer a quiet domain of technical experts. It has become a key arena for global competition, where different economic and political philosophies vie for influence. The United States, historically the leader in this domain, now faces a strategic challenge from state-directed economies, particularly China.

The Standards Race: Two Different Approaches

At the heart of the current global competition are two fundamentally different approaches to standardization.

The U.S. Model – The U.S. standardization system is decentralized, voluntary, and overwhelmingly led by the private sector, according to the Standards Portal. It is rooted in the belief that an industry-led, market-driven, consensus-based process is the most effective way to foster innovation and ensure that standards reflect real-world needs, as Cornell Law School explains.

The government’s role is traditionally one of a participant and facilitator, not a director. This system reflects core American values of free-market competition and limited government control.

China’s Model – In stark contrast, the People’s Republic of China views leadership in technical standards as a strategic national priority, encapsulated in the saying that “third-tier companies make products, second-tier companies design technology, and first-tier companies set standards,” according to CSIS analysis.

China has pursued a decades-long, state-directed strategy, investing substantial government resources to dominate the development of global standards in key sectors like mobile communications, artificial intelligence, and robotics. This involves deploying large government delegations to international standards bodies and submitting a high volume of technical proposals to embed Chinese technology and priorities into global standards, as Global Taiwan Institute documents.

This clash of philosophies is most evident in the race to define the standards for next-generation telecommunications (5G and 6G). The country that leads in developing these standards gains enormous economic advantages through patents and sales revenue, and also wields significant influence over the critical infrastructure that will underpin the global digital economy, according to CNAS and Brookings.

China’s dominance in 5G infrastructure—where Chinese firms control a majority of the world’s base stations and connected devices—highlights the effectiveness of its state-backed approach and poses a significant challenge to U.S. economic and national security interests.

Critiques and Challenges

As the United States adapts its strategy to this new competitive environment, its policies have drawn criticism from multiple corners of the globe, requiring a balanced assessment.

International Criticism – Authoritarian powers, led by China and Russia, are actively challenging the U.S.-led international order and its underlying norms, according to the Director of National Intelligence.

In forums like the United Nations, they advocate for alternative norms that prioritize state sovereignty over individual rights, promote government control over the internet, and reinterpret international law to justify their domestic and foreign policy actions.

They seek to embed these alternative norms into the very fabric of international standards and governance, from cyberspace to development finance. This represents a direct ideological challenge to the principles of openness and individual freedom that have historically underpinned the international system championed by the United States and its allies.

Criticism from Allies – In its effort to counter China and bolster domestic industry, the U.S. has adopted policies that have been criticized by its own allies and parts of the business community as protectionist. For example, provisions in the Inflation Reduction Act that provide subsidies for electric vehicles with strict domestic content requirements have been met with alarm in Europe and Asia, according to Baker Institute research.

Critics argue that these policies are inconsistent with World Trade Organization rules and could increase production costs, drive domestic inflation, and make U.S. producers less competitive globally. There is a significant risk that these measures will provoke retaliatory actions from trading partners, who may implement their own subsidies and local content requirements, ultimately harming U.S. exporters and fracturing the global trading system.

Some U.S. business interests also complain that excessive or poorly designed regulations can stifle innovation and impose heavy costs that impede profitability and job creation, as Investopedia explains.

The Risk of Overreaction – A more nuanced critique suggests that while China’s growing influence in standards bodies is a legitimate concern, an overly aggressive U.S. response could be counterproductive.

Some analysts argue that the international standards system remains largely robust and that attempts by the U.S. government to politicize the process—for instance, by banning Chinese participation or pulling public funding—could do more to undermine the open, consensus-based system that has historically served U.S. interests than China’s actions themselves, according to Carnegie Endowment analysis.

This places the United States in a strategic paradox. To effectively compete with China’s state-directed model, the U.S. is increasingly adopting policies, like the National Standards Strategy and the Inflation Reduction Act, that move closer to a government-led industrial strategy.

However, in doing so, it opens itself to the same criticisms of protectionism and violation of international trade rules that it levels against its competitors. This risks eroding the U.S.’s position as a champion of the “rules-based international order” and could provide justification for other countries to pursue their own protectionist policies, potentially leading to a spiral of trade conflicts that harms the global economy.

Navigating this paradox—competing effectively without undermining the very system that has fostered its prosperity—is the central challenge facing U.S. policymakers in the global standards arena today.

The Department of Commerce stands at the center of this challenge, tasked with maintaining America’s technological leadership while preserving the open, collaborative principles that have made the international standards system a driver of global prosperity and innovation.

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