The Great Power Hype

Volume 2, Issue 11- March 11-17, 2011

International Tribune

The buzz in the 21^st century is the reign of China and the inevitable American decline.  Is this fact or fiction?  

It has become a conventional wisdom that America’s superpower status is about to end.  And the Chinese age is dawning.  Made in China is visible in every market that you go to.  Made in the USA is becoming more rare.  It has been boldly predicted that by the year 2027, China’s GDP will surpass America's according to Goldman Sachs.  There are also certain talks that the Yuan will overtake the dollar as the world’s main currency reserve.  All academia, media, and pundits alike are pontificating that American supremacy is losing its clout in the global stage.  

Hold off.  Let us not get too ahead over this.  It is time to make a few things more clear.

Yes, America is still in financial troubles today.  But what nation did not suffer from the contagious financial plague that took the world by storm?  It is true that the Middle Kingdom weathered the Great Recession better than the West.  It is only logical that when one is broke, they will spend their money where things are a lot cheaper.   China Incorporated is the discount store where everyone is pouring their money into.  And the Yuan has a long way to go to kick the dollar off its pedestal.   Not when corruption stays rampant, the rich-poor gap keeps widening and the social instability remains a real threat to a country without a democratic system in place.  It takes more than a robust balance sheet to establish its currency in market places and treasuries around the globe.  The dollar symbolizes something that is very special and innate, and that is the rule of law and long-term political stability. This is where team America still has an edge.  The dollar provides a safe haven in international trade settlements and it will likely remain the currency of choice for many nations' foreign reserves for this century.  After all, American-style capitalism is still embraced and copied everywhere around the world.     

No doubt, China’s economy is in an upward trajectory at the moment.  However, it has a long way to go for its political and military might.   America is still unrivaled in its military prowess and technology.  China is building up its military arsenal and needs America’s partnership to develop a more sophisticated armament.  Despite the disaster of the Iraq war, the American military is still seen as more benevolent than the Communist’s red army.  China’s relations with rogue states such as Iran and North Korea are not the best friendship one can boast for in international affairs.  This also says a lot on its stance with human rights- a never ending dark shadow that China is always being typecasted on.  

In terms of soft power, American music and films are still seen everywhere all over the world.  American universities still rank among the best globally.  The US is still one of the most generous aid donors amongst international organizations whereas China is still harbors suspicion on non-governmental organizations' activities even within its own geographical territories.  Facebook and Google, have both become international household names.  McDonalds, unhealthy or not, is still busily opening chains in different corners of the globe- even in the most remote places in China.  And let us not forget that President Obama is received as a rock star wherever he goes abroad.  He is an icon that symbolizes hope and endless opportunity-the very essence of the American dream.  Sadly, I cannot say the same for China's President Hu Jintao.  

Everyone loves to talk about the problems in the US.  This is nothing new.  If not about terrorism, it is about Madonna, if not our debt crises, it is our tea parties.  Wherever you go, there is always something being said about America.  At the moment, the decline of American hegemony and the rise of China is all hype.  Is it news worthy? Yes.   Are they just predictions?  Yes, once again.