However, what greeted Lew, Defense Secretary Chuck Hagel and Secretary of State John Kerry is major federal spending cuts that could dampen U.S. economic growth and curb its military readiness.

　　In his State of the Union address, Obama vowed to boost the country's competitiveness by fostering new economic growth points and increasing investment in key areas such as infrastructure, education, science and vocational training.

　　To make the president's vision become reality, the new cabinet, now in face of urgent economic challenges and a looming budget crisis, is emphasizing measures to boost U.S. competitiveness and seeking greater cooperation with its allies while trying to avoid any unilateral moves, analysts said.

　　COPING WITH BUDGET CRISIS BY BOOSTING COMPETITIVENESS

　　Sweeping U.S. government spending cuts totaling 85 billion dollars began to take effect Friday, after the White House and congressional Republicans failed to reach an agreement on handling the ballooning budget deficit.

　　Hagel, who was sworn in Wednesday as secretary of defense and whose budget at the Pentagon is set to be slashed by roughly 46 billion dollars, said on Friday that the budget cuts will endanger the U.S. military's ability to conduct its missions.

　　But he also said he would do whatever he could to make sure the U.S. army's battle effectiveness won't be influenced by the spending cuts.

　　In a speech at the University of Virginia, Secretary of State John Kerry, who took office on Feb. 1 to succeed Hillary Clinton, also said that the budget impasse was the greatest challenge to U.S. foreign policy.

　　Though the new treasury secretary has yet to make any public comments on the spending cuts, Lew has said at his Senate Confirmation Hearing in February that the government must leave sufficient room for critical investments in education, research, and infrastructure so as to spur economic growth and boost U.S. competitiveness globally.

　　Lew also made it clear that the country's top priority now is to strengthen the recovery by fostering private sector job creation and economic growth, complete financial reform, reform the tax system, and expand manufacturing in the United States.

　　CEMENTING RELATIONS WITH ALLIES

　　Cementing America's relations and cooperation with its allies around the world while trying to avoid any unilateral actions is clearly one of Obama's foreign policy strategies during his second term, as the president, plagued by a tight budget, is seeking new growth points for the U.S. economy, analysts said.

　　As Hagel said shortly after being sworn in as the new Pentagon chief, America cannot "dictate to the world" and must work with allies and build relationships with other nations.

　　"I've always believed that America's role in the world ... has been one that should engage the world. We can't dictate to the world. But we must engage in the world," Hagel said.

　　"No nation, as great as America is, can do this on their own. We need to continue to build on the strong relationships that we have built."

　　On Feb. 21, three experts from the Heritage Foundation, a U.S. think tank, co-wrote in an article that the Obama administration have not paid enough attention to the transatlantic alliance in the past four years.

　　But it is believed that Kerry's trip to Europe as top U.S. diplomat would open up an opportunity for the United States to improve relations with these countries, especially Britain.

　　Lew, like Kerry and Hagel, also emphasized the importance of international cooperation, urging the Obama administration to work with its partners around the globe as well as organizations like the Group of 20.

　　Through boosting ties with its allies, Obama is more likely to forge an alliance when dealing with global challenges such as the Syria crisis, the nuclear issues in Iran and on the Korean Peninsula, analysts said, adding that it could also serve as a foundation for his peace efforts for the Middle East.