Unlike in the West, China's economic dysfunctions like industrial overcapacity paradoxically strengthen its global position. This creates massive trade surpluses and investment leverage, forcing other nations to welcome Chinese capital and increasing Beijing's geopolitical heft.

Unlike the US, China expands its influence by offering to build highways, airports, and electrical grids for other nations. This 'soft power' approach, funded by a large trade surplus, has allowed it to gain significant control in regions like Africa without military intervention.

For the first time, China's economic power—measured by purchasing power parity, manufacturing output, and control over critical minerals—has shifted the global power balance. This gives President Xi a stronger negotiating position than his U.S. counterpart, as China can now weaponize economic dependencies more effectively.

The strategic competition with China is often viewed through a high-tech military lens, but its true power lies in dominating the low-tech supply chain. China can cripple other economies by simply withholding basic components like nuts, bolts, and screws, proving that industrial basics are a key geopolitical weapon.

China aims for maximum self-sufficiency while simultaneously encouraging foreign economic dependence on its market. This calculated strategy creates powerful geopolitical leverage, as countries like Germany become hesitant to challenge China for fear of damaging their significant commercial interests.

China is engaging in economic warfare by systematically reducing its holdings of US debt. This strategy targets the foundation of the US economy, which is 70% based on debt-fueled spending. By simultaneously pushing a gold-backed digital yuan, China aims to undermine the dollar's reserve status.

China isn't trying to impoverish the US; it wants America to remain a wealthy customer. Its ultimate goal is to achieve a "comparative advantage" so significant that the US and other nations become subservient, dependent on Chinese infrastructure, technology, and currency.

Contrary to common perception, China holds the stronger hand in its relationship with the U.S. As the world's creditor and primary producer, China can sell its goods to billions of other global consumers. The U.S., as a debtor and consumer nation, is far more dependent on China than the other way around.

China is waging economic, not military, war. By creating its own self-sufficient tech ecosystem and offering cheaper alternatives globally, it aims to break the world's reliance on the American tech monopoly and peel away its economic allies.