Mansoor Nizamani
Following the end of the Second World War, the United States emerged as a major global power, establishing its influence over the international political, economic and military order for several decades. The US dollar became a cornerstone of global trade and the international financial system, while NATO, international financial institutions, military alliances and diplomatic relations enabled Washington to play a decisive role in many important global affairs. However, over the past few decades, the international landscape has undergone significant changes, presenting new challenges to America’s traditional dominance. The most prominent of these challenges has emerged in the form of China. With its rapid economic growth, industrial strength, advanced technology, expanding military capabilities and growing diplomatic influence, China is increasingly reshaping the global balance of power. The question is whether China is genuinely moving towards replacing the United States or whether the world is heading towards a new international order in which influence will be shared among several major powers rather than dominated by a single country.
China’s emergence as a rising global power and its economic transformation have not happened overnight. They are the result of decades of planning, industrial policies, foreign investment and a carefully developed strategy linked to international trade. The economic reforms introduced during Deng Xiaoping’s leadership after 1978 transformed China from a relatively closed economy into an active participant in the global market. Through large-scale manufacturing, modern industrial infrastructure and export-oriented trade, China became one of the world’s leading economic powers. Today, China holds a significant position in the production of electronics, machinery, automobiles, solar panels, batteries and various industrial goods. The Belt and Road Initiative is also an important component of China’s global economic strategy. Through this initiative, China is investing in roads, ports, railway networks and energy projects across Asia, Africa, Europe and other regions. In this way, China’s influence extends beyond exporting goods; it is also expanding through infrastructure development and economic connectivity with other countries.
Technology has become another major front in the strategic competition between the United States and China. In the past, the United States enjoyed a clear advantage in scientific research, computers, the internet and digital industries. However, China is now making rapid progress in artificial intelligence (AI), 5G technology, robotics, electric vehicles, drones and space exploration. Chinese companies are introducing advanced technological products into international markets, while the United States is imposing various restrictions on the export of semiconductors and advanced computer chips in an effort to maintain its technological advantage. This competition is no longer limited to commercial interests; it is closely linked to future economic security, national defence and global influence. In the modern era, the country that advances further in artificial intelligence and advanced computing could gain considerable influence over future industries and governance systems. In terms of military strength, the United States remains one of the world’s most powerful military nations. It maintains military bases, defence agreements and strategic alliances across several regions, including Europe, the Middle East and the Asia-Pacific. On the other hand, China is continuously expanding its naval forces, advanced missile systems, air power, cyber capabilities and defence technology. The South China Sea and the Taiwan issue remain among the most sensitive matters in relations between the two countries. The United States supports Taiwan’s defensive capabilities, while China considers Taiwan part of its territory. Any military confrontation in this region could have consequences far beyond the two countries, potentially affecting the entire Asia-Pacific region and the global economy.
Furthermore, China is expanding its global influence not only through economic strength but also through diplomatic partnerships and emerging international forums. Its role in the BRICS organisation, strategic cooperation with Russia and growing relations with countries in Africa, Latin America, Central Asia and the Middle East are all part of this broader strategy. China presents itself as a supporter of the economic and diplomatic interests of developing countries, while the United States continues to maintain strong relationships with Europe, Japan, South Korea and other important allies. An important aspect of this competition is that many couantries prefer to maintain relations with both powers according to their national interests rather than becoming completely dependent on either one. China’s diplomatic engagement within the United Nations and other international institutions has also increased. This demonstrates that global politics is no longer shaped exclusively by decisions made in Washington; regional and international powers are also playing increasingly significant roles in pursuing their own interests.
One of the major foundations of American global dominance is the strength of the US dollar. It continues to play a central role in international trade, oil transactions, global lending and the foreign exchange reserves held by central banks. China is making efforts to expand trade in its own currency, the yuan, with various countries in order to reduce dependence on the dollar. Some BRICS members are also discussing alternative financial arrangements. However, current international figures indicate that the dollar’s global position does not yet face a major threat. According to the International Monetary Fund’s figures for the final quarter of 2025, the US dollar accounted for 56.77 per cent of global foreign exchange reserves, while the Chinese yuan represented only 1.95 per cent. This demonstrates that despite China’s growing economic strength, the United States continues to hold a dominant position in the international financial system.
The trade war between the two countries has also become a major challenge for the global economy. The United States is imposing tariffs and trade restrictions on various goods imported from China, while China is responding with countermeasures to protect its economic interests. Washington seeks to restrict China’s access to advanced semiconductor and chip technologies, whereas Beijing is using its significant position in rare earth minerals and industrial production as part of its economic strategy. According to a March 2026 report by the US Federal Reserve, China’s trade surplus reached a record level of approximately $1.2 trillion in 2025. This growing rivalry between the two global powers could have significant consequences for international supply chains, production costs and the trade policies of various countries.
For Pakistan, the growing competition between the United States and China holds particular importance because Pakistan maintains relations with both countries across several sectors. China is Pakistan’s close strategic and economic partner, while several projects involving energy, roads, communication networks and infrastructure development are under construction through the China-Pakistan Economic Corridor (CPEC). On the other hand, the United States remains important to Pakistan in terms of trade, exports, investment, education and diplomatic relations. In these circumstances, Pakistan needs to assess the competition between global powers in light of its national interests. Rather than becoming completely dependent on one country, Pakistan should pursue a balanced foreign policy that serves its long-term national interests.
Overall, China’s growing global influence undoubtedly presents a significant challenge to America’s traditional dominance. However, claiming that America’s era of global leadership has already ended would not be entirely consistent with the facts. The United States still maintains considerable advantages in military strength, the international financial system, the global position of the dollar, scientific research and international alliances. Meanwhile, China continues to expand its global influence through industry, trade, infrastructure and several technological sectors. According to the 2025 figures of the Stockholm International Peace Research Institute (SIPRI), US military expenditure was approximately 2.8 times higher than China’s, although China’s military capabilities are also continuing to expand. The direction of global politics over the coming decade will not be determined solely by the power of the United States or China, but also by their strategies, alliances, economic stability and the independent decisions of other countries. History teaches us that the balance of global power is never permanent. Nations advance through sound policies, knowledge, industry, economic development and strong institutions. Therefore, the real question is not simply whether American dominance will end or whether China will become the world’s leading power. More importantly, whichever power emerges as a major force in the future international order should prioritise peace, cooperation and shared global development so that the world can move towards a more stable and prosperous future.
