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Irregular: Does China or the US rule the world?

This piece cuts through the noise of daily headlines by staging a high-stakes, structured debate on the most defining geopolitical question of our time: who actually holds the reins of global power? Geopolitical Dispatch doesn't just offer a prediction; it dissects the very metrics we use to measure dominance, revealing how easily we confuse economic mass with actual influence. For a busy reader, the value lies in the sharp distinction drawn between the "pyramids" of physical infrastructure and the "street fight" capabilities of alliances and technology.

The Illusion of Size

The editors frame the debate by immediately dismantling the assumption that a larger economy or population automatically equals a stronger nation. They invoke a stark historical parallel to the First Opium War to illustrate this point. "If you were in the 1830s, asking the question 'who's more powerful: the United Kingdom or China?' you would have said China — if you were focusing on size alone," the piece notes, pointing out that China then accounted for 35% of global GDP. Yet, the argument continues, the United Kingdom "wiped the floor in both the First and the Second Opium Wars." This historical anchor is crucial; it reminds us that raw numbers can be deceptive when one side lacks the technological edge or the organizational capacity to project power.

Irregular: Does China or the US rule the world?

Applying this lens to the present, the article argues that the United States retains a decisive advantage in wealth per capita, which serves as a proxy for technological sophistication. "The average American has about $85,000 compared to an average Chinese person having about $13,000," the text states, highlighting that while China may be larger in purchasing power parity, it cannot deploy that capital globally due to currency controls. The commentary here is compelling because it shifts the focus from total GDP to the quality and mobility of that wealth. Critics might note that this metric overlooks the rapid pace of China's innovation in specific sectors, but the piece effectively argues that broad-based economic depth remains a harder metric to replicate quickly.

The Military and the "Street Fight"

When turning to military capabilities, the coverage moves beyond simple headcounts to analyze the quality of force projection. The piece contrasts the sheer number of Chinese naval vessels with the superior tonnage and nuclear capabilities of the American fleet. "China also has more naval vessels, but they are significantly less advanced when compared in 'fleet tonnage'," the editors report, noting that American submarines allow for longer, undetected operations. This distinction is vital for understanding why the United States can still dominate the global commons despite China's rapid shipbuilding.

However, the debate introduces a provocative counter-narrative regarding the nature of modern warfare. One contributor argues that the traditional metrics of power are becoming obsolete in an era of asymmetric conflict. "Sure, submarines matter, but as we can see in Ukraine, the ways that wars are fought today are with advanced asymmetric technologies," the piece quotes. This reframing suggests that the "pyramids" of heavy infrastructure might be less relevant than the ability to deploy drones and digital tools. The argument that China's massive infrastructure build-out could serve as a strategic buffer against maritime blockades is a fascinating, if speculative, point that adds depth to the discussion of resilience.

"International relations is more like a street fight than a sumo wrestling contest. Weight might help you a bit, but there are a lot of other physical characteristics and skills that you need to be able to win a street fight."

The Alliance Equation

The most persuasive section of the article tackles the diplomatic architecture of the two powers. The argument posits that the United States' true strength lies not in its own resources, but in its ability to multiply its influence through a network of allies. "On that score, to put it bluntly, China's got no friends. America has a deep and incredibly broad system of alliances that massively multiplies its influence around the world," the text asserts. This framing effectively counters the narrative of a rising China that can simply outspend the West, suggesting instead that the US system creates a multiplier effect that China's "paper-thin" partnerships cannot match.

The piece acknowledges the strain on this system, particularly noting that the executive branch has altered how these alliances are treated. "Donald Trump obviously does not treat alliances in the same way that Joe Biden or Barack Obama or really any president in the post-Second World War era did," the editors observe. Yet, they argue that the structural reality remains: "When you ask the question 'Is China or the United States more powerful?' you really need to be asking 'Is China or the United States plus Japan, plus Korea, plus Europe, plus Australia more powerful?'." This is a critical insight for investors and leaders: the US power projection is a coalition sport, whereas China's is largely a solo act.

Conversely, the counter-argument presented in the debate warns against overestimating the durability of these alliances. "Alliances matter, until they don't," one speaker warns, suggesting that the Cold War logic binding the West is fraying. The piece notes that for many nations, alignment is driven by interest, not shared values, and that the US may find its partners drifting if their national interests diverge. This adds necessary nuance, preventing the analysis from becoming a simple cheerleading exercise for the status quo.

Bottom Line

The strongest element of this coverage is its refusal to accept "size" as a proxy for power, using historical precedent to demonstrate that technological depth and alliance networks often trump raw economic mass. However, the analysis rests heavily on the assumption that the US alliance system will hold together despite recent political volatility, a vulnerability that the piece acknowledges but ultimately treats as a structural given. Readers should watch for how the executive branch's transactional approach to diplomacy reshapes these coalitions in the coming years, as that will be the true test of the "street fight" analogy.

Deep Dives

Explore these related deep dives:

  • Thucydides Trap

    The article's framing of US-China rivalry as a power transition echoes this concept coined by Graham Allison, which describes the historical pattern of conflict when a rising power threatens an established one - directly relevant to the debate's central question

  • First Opium War

    The author explicitly references the Opium Wars to illustrate how economic size doesn't equal power, using 1830s China vs Britain as a historical parallel - readers would benefit from deeper understanding of this pivotal conflict

  • Purchasing power parity

    The debate hinges on comparing US and Chinese economic power using both nominal GDP and PPP measures - understanding this economic concept is essential for evaluating the competing claims about which economy is larger

Sources

Irregular: Does China or the US rule the world?

Hello from Melbourne,

In today’s Irregular, I would like to share with you a transcript of a debate that Michael and I had last week at a public event in Sydney.

The topic: Does China or the United States rule the world?

We covered quite a lot of ground, comparing each country’s military strength, economic depth, record of innovation, diplomatic clout, and its overall trajectory and influence in international affairs.

We were hosted at Florence Guild, an organisation dedicated to stimulating debate. And so that’s what we tried to do. We flipped a coin to choose sides – I got saddled with arguing that the United States remains the preeminent global power, while Michael had to take up the case that China is likely already the world’s most powerful country – and even if it isn’t quite there yet, that’s where things are headed.

As a result, as in much of life, we didn’t necessarily mean everything that we said. Nevertheless, we hope you find the debate interesting and thought-provoking. And we would be very curious to hear how you land.

After all, the stakes are quite high. The United States and China shape world affairs in myriad ways that affect us all. And, as was the topic of yesterday’s Week Signals, how they deal with each other matters perhaps even more.

You can find the transcript below.

Best wishes,

Damien

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Damien:

Just by way of introduction, Michael and I started a firm called Geopolitical Strategy a few years ago, advising corporates on geopolitics – something that was a bit niche until Donald Trump returned to power for a Second Coming.

But we actually met back in 2013 when we both joined the Department of Foreign Affairs and Trade. I recall the final question in our interview process was about how Australia should manage its relationship with the United States and China. So this is an old question and one we’ve been debating for a long time. But it’s taken on a new and important resonance because, back then, the United States was clearly much more powerful than China. Today, it’s a bit more of a close call.

The topic of tonight’s debate is “The US and China: Who Rules the ...