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In the geopolitical tug of war between the Global giants (please refer to the previous article), on one end lies the Monroe doctrine, which enabled U.S to first halt European encroachment into the Americas and then allowed it to extend influence vastly over Europe, with NATO emerging as one of the sweetest fruits of that influence.
On the other end, lies Sun Tzu’s philosophy. He once said,
“The wise warrior avoids the battle.”
Incorporating his philosophy has undoubtedly provided China with the edge that it has today. This edge, however, emerged over time.
While U.S continued to make a blood stained history in Vietnam, Laos, Cambodia, Afghanistan, Iraq and beyond, whether directly or through proxies, China invested in what has now become the most consequential weapon of the modern age: the economy.
Despite the continued projection of American economic dominance through the petrodollar system, the race for technological supremacy introduced a new axis of control in the form of Rare Earth Elements (REEs). Control over oil may sustain power, but control over REEs defines its utility.
And it is here that China fixed its gaze. Today, China controls approximately 70% to 90% of the world’s REEs supply chain, transforming industrial dependency into strategic leverage.
Recent tensions involving Iran and the United States alongside Israel serves as another window into this broader global rivalry. Beneath the surface of regional conflict, lies the deeper contest between Washington and Beijing.
The United States reportedly incurred losses approximating $42 billion, with some estimates extending beyond $1 trillion when accounting for broader operational and strategic costs. Beyond the financial toll, however, lies a more critical, perceptional, erosion of the United States as an unchallengeable superpower and a reliable guarantor for its allies, both in Europe and the Middle East.
China in contrast gained throughout this episode. It avoided direct confrontation, preserving its assets across the regional and at the same moment, it advanced its position as a reliable alternate. It demonstrated the viability of conducting transactions in Yuan, signaling a subtle but significant challenge to dollar dependency.
More notably, Chinese commercial and strategic vessels reportedly navigated through contested zones despite the presence, or threat, of U.S’s blockade over the Strait of Hormuz.
All in all, what we witnessed is a successful execution of Sun Tzu’s wisdom when he said:
“So in war, the way is to avoid what is strong, and strike at what is weak.”
China does not seek victory where the United States appears invincible. It seeks it where the United States assumes it already is. And in doing so, it does not merely win battles, It quietly redefines what Global Power Rivalry in current times itself looks like.