Weekly Geopolitical Report – The U.S.-China Balance of Power: Part IV (February 8, 2021)
by Patrick Fearon-Hernandez, CFA | PDF
(Note: Due to the Presidents’ Day holiday, our next WGR will be published on February 22.)
This multi-part report aims to assess the current balance of power between the U.S. and China and what that implies for how the competition may play out in the coming years. Part I gave a comprehensive overview of each side’s key interests and goals. In Part II, we provided a head-to-head comparison of the Chinese and U.S. armed forces. Part III compared Chinese and U.S. economic power, mostly in terms of the leverage that China and the U.S. gain from importing enormous amounts of goods and services from other countries and providing investment capital abroad. This week, in Part IV, we describe the two countries’ relative diplomatic positions around the world. We’ll wrap up this series two weeks from now with a deep dive into the associated opportunities and threats for U.S. investors.