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10 March 2021

The US-China global vaccine competition

American Enterprise Institute

American COVID-19 vaccine technology is the world’s best. Moreover, potential competitors face greater obstacles in efficacy, transparency, and production.

Once vaccination at home is well along, the Joe Biden administration can subsidize international distribution of American vaccines. In addition to humanitarian motives, there is also an important foreign policy opportunity.

US-China competition has intensified during the pandemic and could intensify further this decade. China caused the COVID-19 problem, while the US can lead in solving it—a powerful contrast.

The single most important area of competition is Southeast Asia. The populous countries of Indonesia, the Philippines, and Vietnam naturally face vaccination challenges. American assistance would have substantial value.

After a year of a devastating health crisis, economic wreckage, and foreign attempts to capitalize on American misfortunes, the Biden administration is looking for ways to reestablish world leadership. The US pharmaceutical industry has provided President Joe Biden with a powerful tool to protect public health: the world’s best vaccine technology. Combined with production capacity to match or exceed all global competitors, this technology should also be leveraged for diplomatic gain.

While health and economic recovery at home are the first goals, the US should immediately plan to subsidize COVID-19 vaccine production for international distribution. Humanitarian considerations are intrinsic in this decision. But Washington should also prioritize distribution based on geostrategic goals.

Proximity makes Mexico an obvious choice for the first recipient of extensive vaccine aid. After that, the US should turn to gaining geopolitical advantage in its competition with China. This moves the large Southeast Asian countries of Indonesia, the Philippines, and Vietnam to the top of the list for vaccine assistance.

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