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March 3, 2022updated 04 Mar 2022 11:19am

Biden’s SOTU reinforces US resolve against Russia, competition with China continues

The announcements included US troops to support Nato allies and removal of access to technology essential to Russia’s future growth.

By GlobalData

President Biden’s first State of the Union (SOTU) address had a resounding message, that America would work closely with its partners to ensure that Russia would be isolated from the world, and they would have to agree to follow generally accepted principles of the global order.

Dr Mathew George, ADS Practice Head at GlobalData comments: “President Biden’s first SOTU address has come with so much going on internationally and locally. The President also announced an effort to increase the pressure on Russian interests by blocking off American air space to Russian aircraft. And giving a brief roundup of the efforts that the US and allied countries were undertaking to hurt Russia economically and politically.”

Part of those announcements were steps taken by the US to send more troops to back Nato allies, steps to cut Russia’s largest banks from the international financial system and remove access to technology that would be essential to Russia’s growth in the future.

George continues: “This is marked difference from the previous administration though, with greater emphasis and building its relationship with Nato as a block and supporting the movement in Ukraine financially. However, it also shows how fast administrations can change their areas of focus. China was mentioned just twice in the speech, although there was supposed to be a great reorientation to the East. Naturally, governments are not going to be loud about all the things that matter to them, and the president did bring focus to his economic plans to rebuild American infrastructure. He also emphasized the need to pass the Bipartisan Innovation Act to help America guide investment into emerging technologies and manufacturing. These will be essential to see America catch up to the advances made by China in several areas.

“The President’s comment on American tax dollars supporting American jobs and businesses in relation to defense spending was interesting. There are several examples where this is the case. Should the Bipartisan Act be passed, we may see additional avenues for businesses to be a part of the defense industry with further requirements placed to ensure benefits to the local economy.”

While the President’s address did play to the gallery to cover Ukraine, increase further restrictions on Russia and applaud the Ukrainian people, domestic requirements, and his focus on increased investment into the local economy and infrastructure would have been of further interest to his local audience. We will need to assess the situation to see how much of an effect or additional steps programs will need to ensure that tax dollars benefit American jobs and businesses.

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