Grand Strategy in the Next Administration Starts with Connecting Markets

Commentary by Benjamin Jensen and Jason Clayton

Published November 21, 2024

To sustain economic growth, the United States cannot retreat from the world. The minerals and markets it needs to generate higher-paying jobs are overseas. These resources are often in states where a mix of corruption and outdated infrastructure increases the costs of doing business. Worst still, authoritarian states use energy markets and resource trading to gain access and leverage in a manner antithetical to free trade and U.S. interests.

As a result, the incoming Trump administration should forge a new grand strategy that puts energy and markets at the center of its decisionmaking. This strategy should accelerate the construction of energy infrastructure globally and put digital exchanges at the center of efforts to ensure open and fair trade that tracks critical resources in a manner that ensures ethical and environmental standards.

First, the Trump administration can adapt some of the Biden administration's policies to use critical infrastructure projects as a form of diplomacy. The Biden team created a multilateral framework to encourage public-private investment in critical infrastructure globally under the Build Back Better World initiative. This initiative was simultaneously a strategy for addressing the $3 trillion gap in infrastructure investment globally and countering the Chinese Belt and Road Initiative. Later rebranded the Partnership for Global Infrastructure Investment (PGI), the effort has made key transportation investments in the Lobito Corridor in East Africa, which will ensure U.S. and European access to critical minerals while bolstering economic development in the region. In Southeast Asia, PGI has made infrastructure investments in the Philippines through the Luzon Economic Corridor, which will both promote growth and support the defense against China.

The Trump administration could expand on this initiative by focusing on energy projects that promote U.S. economic growth. First, the incoming team should drop the Biden's administration ban on licenses for new liquified natural gas (LNG) export terminals. In addition to transportation infrastructure and electric vehicles, PGI should promote LNG export projects that create U.S.-based jobs while ensuring access to cleaner energy sources in the developing world. Second, the Trump team could expand on financing the Export-Import Bank of the United States to fund small modular reactors and help fellow democracies achieve energy independence. Authoritarian regimes still play an outsized role in global energy markets. Both Moscow and Tehran are leading LNG and oil exporters, providing them with funds to support oppression at home and abroad. Beijing plays an outsized role in both green energy and predatory investments in the power grid in key countries like the Philippines, giving the Chinese Communist Party a coercive hold over the local economy. There is precedent to financing projects to achieve energy independence. For example, the European Energy Security and Diversification Act of 2019 allowed the Development Finance Corporation to finance multiple projects including a $500 million loan guarantee for a liquified natural gas project in Poland. The same logic can apply to critical minerals and ensuring the United States has access to key resources.

Second, the Trump administration can deepen private sector involvement in diplomacy and development by harnessing digital markets to combat corruption, enhance transparency, and strengthen global trade-particularly in regions rich in critical mineral resources. Digital asset exchanges and advanced compliance platforms present transformative opportunities for fostering ethical trade practices while supporting U.S. strategic and economic objectives.

By digitizing procurement and trading processes for critical minerals, such exchanges ensure compliance with Organisation for Economic Co-operation and Development guidelines for responsible mineral supply chains, creating a robust and transparent environment that attracts reputable investors. Leveraging blockchain-based compliance tools and tokenized assets, these platforms enable the traceability of resources from extraction to final use, ensuring alignment with ethical, environmental, and legal standards.

The integration of digital systems addresses long-standing challenges in the mining sector, where resource-intensive activities often involve significant corruption risks. Through anti-money laundering and know-your-customer protocols, digital platforms reduce opportunities for bribery, favoritism, and fraud, establishing a culture of accountability. They also empower local officials with tools and training, enabling them to oversee activities with greater integrity and precision.

Furthermore, these platforms foster sustainable expansion of mining operations. By reducing the risks associated with corruption and ensuring compliance with international norms, digital exchanges encourage mining companies to secure financing and forge international partnerships. This approach not only drives economic growth in resource-rich nations but also stabilizes critical supply chains for U.S. industries such as technology and clean energy.

The benefits extend beyond transparency and accountability. A digitized mercantile exchange supports responsible exploratory actions, incentivizing mining companies to align their practices with global sustainability goals. These systems ensure that natural resource exploitation serves as a catalyst for economic development rather than a source of instability.

By advancing these initiatives, the Trump administration can position the United States as a global leader in sustainable trade and development. Supporting digital commodity exchanges aligns with U.S. strategic interests, strengthening global trade networks, stabilizing resource supply chains, and ensuring that the exploitation of natural resources is conducted ethically, transparently, and in a way that promotes long-term global stability.

To advance these initiatives, public-private partnerships will be essential. The private sector brings innovative technologies and the expertise needed for their implementation, while governments can provide diplomatic support, regulatory frameworks, and financing to facilitate widespread adoption. Together, these partnerships have the potential to set a new global standard for transparency and accountability in trade, transforming how natural resources are managed and distributed.

The United States is uniquely positioned to lead this transformation. By leveraging private sector expertise in digital innovation and aligning it with strategic policy objectives, the United States can secure access to critical resources, encourage ethical investment, and promote sustainable development in key regions. This dual approach-blending private sector ingenuity with public sector diplomacy-ensures that U.S. influence remains both competitive and constructive on the global stage.

How the Trump administration negotiates Fair Trade Deals and connects to these regions is, therefore, a core strategic question that transcends traditional boundaries of diplomacy and development. The incoming president should focus on fostering private-sector solutions that create new mechanisms for promoting fair trade and investment. By doing so, the administration can craft a grand strategy that not only secures U.S. interests but also reinforces its commitment to a stable and prosperous world.

Benjamin Jensen is a senior fellow for Futures Lab in the International Security Program at the Center for Strategic and International Studies in Washington, D.C. Jacob Clayton is the CEO of SAGINT, a U.S. company specializing in digital asset exchanges and smart city solutions, and a lieutenant colonel in the U.S. Marine Corps Reserves Defense Innovation Unit. The views expressed are his own.

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