Analysts are advising that after the coronavirus pandemic is controlled and the economy is allowed to resume as normal, Joe Biden’s priority should be to revive the dwindling economy.
Many believe that the United States’ eight-decade-long position as a global superpower and the dominant economy is coming to an end. The world is moving towards agreeing that China will be the biggest superpower and economy in the world by the next 10 years.
According to the International Monetary Fund, China’s economy will be the only major economy that will be thriving this year. Ten years ago, President Xi Jinping championed the recovery of China’s economy after the Great Recession with the help of a massive stimulus scheme.
There are many conflicting opinions about when China will become the largest economy in the world; however, the important point to consider is that this poses a threat to the United States and their competitive advantage over the rest of the world.
The US will not be able to maintain its position as the world’s largest economy since the Chinese economy is growing rapidly, whereas America’s economy has received a heavy blow because of the pandemic. For the United States to stay in the competition, they would need to start relying on their allies to get an advantage.
Even though many countries in the world have nuclear capabilities, only America has had the finances to fund its army and its operations whenever they want to enter into a situation. China will be able to reach the same level as the United States soon enough, however, according to history, two superpowers at equal levels is not a good sign.
Elon Musk, the CEO of Tesla believes that the Chinese economy is likely to be twice or thrice as big as America’s. He proceeds to explain that wars are won through economics because if you do not have resources, you will most likely lose unless you have an innovative solution.
The Harvard University’s Kennedy School of Government is also looking into this matter, debating whether the countries will fall into the ‘Thucydides Trap,’ which means the rise of one country instilling fears in another, which eventually leads to war.
Analysts believe that since China has been mistreating other countries recently, this is an opportunity for Biden to arrange a summit for the world’s leading democracies. He will be able to counter China’s threat with the help of allies.