Political Risk

China Can Take Advantage of the Limitations of the U.S.

“Xinhua published an article in which Huang Renwei, Vice President of the Shanghai Academy of Social Sciences, discussed how China could improve its development by taking advantage of the the United States’ limitations. Huang observed that China’s overall strategic strength is far weaker than the United States. However, the U.S. has limitations in certain areas. It is therefore realistically possible for China to constrain the U.S. by taking advantage of these strategic limitations. 

Huang listed five limitations that the U.S. has: 1) Constantly breaking the debt limit and devaluing the dollar is its biggest strategic limitation. 2) U.S. military power is on a relative decline. Due to substantial pressure from its domestic social security system, the percent of military spending in the fiscal budget is getting smaller and smaller. 3) The United States has cut science and technology spending. Insufficient funding for science and technology and for education will cause the U.S. technology advantage to weaken. 4) In 10 to 20 years time, the U.S. allies system will disintegrate. If The United States cannot provide public goods, which is their biggest need, for its allies, it will be difficult to completely control its allied countries. This will shake the United States’ position of global hegemony. 5) The United States has been using its geopolitical advantage to control the world. In the new geopolitical structure, geo-economic factors have more weight than geopolitical factor. When we put our money into Asian countries and establish an Asian network surrounding China, the United States ability to dominate using its Asian geopolitical advantages will be replaced by the geo-economy led by China. “

Source: CHINASCOPE – China Can Take Advantage of the Limitations of the U.S.

OODA Analyst

OODA Analyst

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