China lags far behind the United States in most areas of technology, while leading in only a few. Going forward, U.S. strategy will likely involve “precision decoupling” to control the core technologies China needs most.

The U.S./NATO-led proxy war in Ukraine is aimed against Russia, and is not for the good of Ukraine. It is an unwarranted war that could penalize global economic prospects for years to come, and any escalation will only make a terrifying status quo far worse.

Most experts see China’s economy moving on an upward track. If a 5.0 percent growth rate is achieved this year, as expected, China will contribute 0.9 percentage points to slumping global GDP growth, and it will continue to be a leading economic engine in the years ahead.

China will stay on a positive trajectory this year, but its achievements did not come easily. Some fundamentals still need to be addressed, as the foundation underpinning the recovery is not yet rock solid. Boosting incomes would make a difference.

Technology is ground zero in the conflict between the United States and China. For the American hegemon, it is about the leading edge of geostrategic power and the means for sustained prosperity. For China, it holds the key to the indigenous innovation required of a rising power. The tech war now underway between the two superpowers could well be the defining struggle of the twenty-first century.

2022 was not a good year for the Chinese economy. In 2022, the COVID-19 epidemic, which started in December 2019, caused significant economic disruptions in the second quarter, especially in Shanghai, resulting in a real rate of growth for the Mainland economy of only 3.0% for the year as a whole. This is the second lowest annual rate since economic reform and opening began in 1978.

National security and data risk concerns between the U.S. and China are continuously increasing, potentially leading to a ‘Cold War’ between the two countries.

The race of geopolitical strategies based on infrastructural development abroad is a part of the new great powers rivalry. The so-called geo-economics contest (Luttwak) is the new global battle, a competition through commerce for getting economic advantages at the intersection of investments and loans, contracts opportunities, conquest of more worldwide market share and improvement of own supply chains, with the declared noble aim of contributing to global development.

Despite a slowing of global economic tailwinds, China is expected to see 4.7 percent growth next year for many reasons, including domestic consumption. Government spending will expand, and private investment will be encouraged. All in all, China will gradually see a return to economic boom times.

As the internationalization of currencies in emerging economies advances, a multipolar monetary system will result. Look for an international monetary system characterized not by a single currency alone but by multiple players.