The key to competing globally consists of using the natural and unnatural advantages your country has to go up against other nations.
For some, this can be a low cost labor force or it can be a well trained and educated work force.
For some, it can be natural resources or strategic location.
However, there are governmental advantages as well.
If a country runs a small fiscal deficit or even a fiscal surplus, this nation has a distinct advantage over the competition. First, they can fund themselves relatively cheaply compared to say a Greece. Or better yet, they can entice companies to move to their country by maintain low corporate tax rates or reducing corporate tax rates.
It’s well known that the US has one of the highest corporate tax rates in the OECD at 35%. The UK isn’t much better at 28%. The Chinese have an official rate at 25%. But with all their additional export incentives and tax breaks, this works out to be more like 12.5%.
The simplest way to go head-to-head with China is to level the playing field by doing what is the least disruptive to the global economy and to foreign policy.