 and have a role in shaping, the rules. It is prosperous in that it empowers all nations to continually raise the standard of living for their citizens. And secure, in that it is free from aggression, coercion and intimidation. Achieving this goal requires three lines of effort. We will: 1) invest in the underlying sources and tools of American power and influence; 2) build the strongest possible coalition of nations to enhance our collective influence to shape the global strategic environment and to solve shared challenges; and 3) modernize and strengthen our military so it is equipped for the era of strategic competition with major powers, while maintaining the capability to disrupt the terrorist threat to the homeland. This is covered in Part II of this strategy. We will use these capabilities to outcompete our strategic competitors, galvanize collective action on global challenges, and shape the rules of the road for technology, cybersecurity, and trade and economics. This is covered in Part III. Our approach encompasses all elements of national power—diplomacy, development cooperation, industrial strategy, economic statecraft, intelligence, and defense—and is built on several key pillars. First, we have broken down the dividing line between foreign policy and domestic policy. We understand that if the United States is to succeed abroad, we must invest in our innovation and industrial strength, and build our resilience, at home. Likewise, to advance shared prosperity domestically and to uphold the rights of all Americans, we must proactively shape the international order in line with our interests and values. In a competitive world, where other powers engage in coercive or unfair practices to gain an edge over the United States and our allies, this takes on a special importance. We must complement the innovative power of the private sector with a modern industrial strategy that makes strategic public investments in America’s workforce, and in strategic sectors and supply chains, especially critical and emerging technologies, such as microelectronics, advanced computing, biotechnologies, clean energy technologies, and advanced telecommunications. Second, our alliances and partnerships around the world are our most important strategic asset and an indispensable element contributing to international peace and stability. A strong and unified NATO, our alliances in the Indo-Pacific, and our traditional security partnerships elsewhere do not only deter aggression; they provide a platform for mutually beneficial cooperation that strengthens the international order. We place a premium on growing the connective tissue—on technology, trade and security—between our democratic allies and partners in the Indo-Pacific and Europe because we recognize that they are mutually reinforcing and the fates of the two regions are intertwined. The United States is a global power with global interests. We are stronger in each region because of our affirmative engagement in the others. If one region descends into chaos or is dominated by a hostile power, it will detrimentally impact our interests in the others. Third, this strategy recognizes that the PRC presents America’s most consequential geopolitical challenge. Although the Indo-Pacific is where its outcomes will be most acutely shaped, there are significant global dimensions to this challenge. Russia poses an immediate and ongoing threat to the regional security order in Europe and it is a source of disruption and instability globally but it lacks the across the spectrum capabilities of the PRC. We also recognize that other smaller autocratic powers are also acting in aggressive and destabilizing ways. Most notably, Iran interferes in the internal affairs of neighbors, proliferates missiles and drones through proxies, is plotting to harm Americans, including former officials, and is advancing a nuclear program NATIONAL SECURITY STRATEGY 11