Seasoned chief executives understand that brand equity can be a company's most priceless asset, even if it never appears on a financial statement. Trust, credibility, and goodwill are painstakingly built over decades through reliable performance. Yet the most formidable brands are seldom undone by external rivals. More often, they falter due to internal decisions that chip away at the very qualities that made them successful. This logic applies equally to countries. As the United States commemorates the 250th anniversary of its independence, Americans must reflect not only on whether their nation remains a dominant global power, but also on whether the internal attributes that sustain that influence are eroding.

Recent global opinion polls paint a troubling picture. The Pew Research Center's 2026 survey across 36 nations found that a median of just 37% of respondents held a favorable view of the United States, while 57% viewed it unfavorably. In most of those countries, China was seen more favorably. Separately, Gallup reported that global approval of U.S. leadership dropped from 39% in 2024 to 31% in 2025, while approval of Chinese leadership rose from 32% to 36%. Among NATO allies, approval of U.S. leadership plunged by 14 percentage points to 21%. The message is clear: America's reputation has suffered. But the more pressing question is whether current policy choices are gradually dismantling the foundations of its influence.

America's global standing has never relied solely on economic might or military strength. Its enduring edge stems from world-class universities, robust financial markets, and leading research institutions. These elements have enabled the United States to attract extraordinary people from across the globe, granting them the freedom to transform industries. Consider Sergey Brin, who arrived from the Soviet Union as a child and later co-founded Google. More recently, Chinese-born mathematicians Hong Wang and Yu Deng, who earned their Ph.D.s at MIT and Princeton respectively, received Fields Medals in 2026 for mathematical breakthroughs; both now teach at U.S. universities. The U.S. became powerful not merely by being bigger, but by being more magnetic—a trait that has yielded remarkable returns.

Data underscores this advantage. International students contributed $43.8 billion to the U.S. economy and supported nearly 380,000 jobs during the 2023-2024 academic year, according to NAFSA. A report from the National Foundation for American Policy found that almost one-quarter of all U.S. startups valued at $1 billion or more had at least one founder who first came to the country as an international student, and nearly 60% were founded by an immigrant. These figures highlight the deep link between openness and innovation.

Yet recent policy shifts risk weakening this competitive edge. Expanded visa screening and vetting, restrictions affecting international students from certain countries, greater scrutiny of universities' foreign funding and research collaborations, and cuts and uncertainty around federal research funding are making the United States less attractive to the world's brightest students and researchers. The Institute of International Education reports that new international student enrollment at U.S. colleges and universities fell 17% in fall 2025. While these policies may be grounded in legitimate national security, economic, or fiscal concerns, they carry significant trade-offs.

Businesses grasp the importance of talent. Great companies fight relentlessly for the best people, aware that innovation is built on human capital. Governments aiming to lead in artificial intelligence, biotechnology, quantum computing, advanced manufacturing, and clean energy must do the same. If the world's most talented young people choose Beijing, London, or Singapore over Boston, San Francisco, or Austin, the result will be fewer U.S. startups, a weakened research ecosystem, and a narrower margin of technological leadership. Once an ecosystem loses its magnetism, regaining it is difficult. Competitive decline rarely results from a dramatic collapse; it emerges from incremental decisions that gradually make a system less attractive to exceptional individuals.

The U.S.-China rivalry compounds this challenge, but also makes it more urgent. Strategic competition between the two largest economies will shape policy for years. The response should be targeted and selective, not a blanket suspension. Some technologies are too sensitive to share, some research relationships merit scrutiny, and some foreign investments need restrictions. However, scientific inquiry does not respect national borders, and many of the world's most pressing problems—from pandemics and climate change to energy security and food production—cannot be solved by one country alone. U.S. universities and companies thrive when researchers exchange ideas with counterparts worldwide. Such collaboration allows American institutions to shape research agendas, set international standards, and remain at the center of global scientific networks.

The policy challenge is not about choosing between security and openness. It is about designing sophisticated measures that achieve both. Carefully targeted export controls, rigorous protection of sensitive technologies, and transparent research-security standards can coexist with robust academic exchange, joint research on global challenges, and continued recruitment of exceptional international talent. Sustaining these channels while protecting genuinely sensitive technologies would strengthen America's long-term competitiveness. It would also bolster a defining characteristic of the U.S. national brand: the confidence that openness, excellence, and innovation are mutually reinforcing.

Confidence matters. A country that believes in its own competitive strength does not need to shut out talented people to protect its position. It sets clear boundaries around what must be protected while remaining open to the people and ideas that can make it stronger. Successful companies understand this. When competitive pressure mounts, they do not make themselves less attractive to top talent. Instead, they invest more heavily in becoming the employer of choice, strengthening their culture, research capabilities, and opportunities for innovation. Nations—and the United States—should think the same way.

*The opinions expressed in Fortune.com commentary pieces are solely those of the authors and do not necessarily reflect the views of Fortune. Fortune Daily transforms trusted reporting into actionable insights for business leaders.*