by Patrick Fearon-Hernandez, CFA | PDF
As the U.S.-China rivalry intensifies in the 21st century, two questions arise. Which is stronger, the United States or China? Which country is better positioned to protect its interests and achieve its goals? To gauge the likely trajectory of their relationship in the coming years and assess the investment implications, Part I of this report discussed how the U.S. and China see their vital national interests and key goals. Part II offered a head-to-head comparison of the armed forces available to each side as they work to achieve their objectives. Part III compared the economic power of each country, and Part IV assessed their relative diplomatic influence. We complete the series this week with Part V, where we assess the overall balance of power between the U.S. and China and offer some thoughts on how their rivalry might develop over time. We conclude with a discussion of the associated opportunities and threats for U.S. investors, at least as long as President Biden is in power.