China's Economic and Technological Ascent: A New Global Order
China's Economic and Technological Ascent: A New Global Order
In recent years, China has taken significant steps toward becoming the world's leading economic and technological power. This transformation is part of a broader effort to reshape global economic and trade dynamics, positioning China as the dominant force it once was. Historically, China held this status for centuries, only losing it in the past one to two hundred years due to the impact of the Industrial Revolution in the West.
However, the United States, which has held economic supremacy for the past 70 years—particularly since the end of World War II—is not willing to relinquish its position easily. The U.S. is actively working to disrupt China's economic ambitions and obstruct new trade routes that bolster China's influence.
The decisive victory of Donald Trump in the presidential election signals a shift in financial and trade policies. With increasing global inflationary pressures outweighing recession risks, geopolitical tensions in Europe and West Asia are intensifying. Uncertainty in diplomatic relations and investment strategies has grown compared to previous years, indicating that the world may experience prolonged instability and economic disruptions.
Inflation in essential sectors such as food and housing remains a pressing issue for the public, making it a significant factor in the U.S. election. Trump's proposed policies include substantial tax cuts for individuals and corporations, eliminating taxes on tips and overtime wages, and extending his 2018 Tax Cuts and Jobs Act, which maintained corporate tax rates at 21%. His plan to further reduce this rate to 15% is expected to be a major incentive for businesses, particularly in the technology sector, where industry leaders are already aligning themselves with his administration.
Such tax cuts would act as a significant economic stimulus, potentially leading to higher budget deficits. Additionally, Trump's intention to roll back Biden’s environmental regulations could further enhance production in various industries, increasing economic output.
Trump has long positioned himself as a "king of debt" and a proponent of a weaker dollar. While his policies could undoubtedly contribute to inflationary pressures, the most influential driver of inflation remains the Federal Reserve’s monetary policies.
As the global landscape evolves, the economic rivalry between China and the U.S. is set to shape the future of international trade, investment strategies, and political alliances. The coming years will likely witness further economic shifts, with both nations vying for dominance in a rapidly changing world order.