Attempting to use “rebalancing” as an excuse for applying pressure on another country or for excluding a particular country from established rules can only exacerbate the rise of global protectionism and economic fragmentation.

The lingering energy shock is morphing from the Asian epicenter to a global economic drag. The U.S./Israel war imposes a fatal penalty on global growth.

The optics of this week’s summit between Donald Trump and Xi Jinping were carefully staged to signal parity between the United States and China. Trump, the first US president to visit mainland China in nearly a decade, was accompanied by an entourage of American CEOs—including Tesla’s Elon Musk (with his son X), Apple’s Tim Cook, Boeing’s Kelly Ortberg, and Nvidia’s Jensen Huang—whose businesses rely on maintaining good relations with the People’s Republic. They were duly given a grand welcome in the Great Hall of the People.

Who will shape the future of the international financial order in the 21st century? It’s a fight over rules, institutions and mechanisms. It’s not only about economic influence but a shift in global power.

The U.S./Iran-linked energy crisis has shifted from a commodity shock to structural geopolitics, with Asia at the epicenter due to its dependence on imported oil and LNG. Global reverberations can no longer be avoided.

The Trump administration’s war against Iran is portrayed as a reckless and ill-timed failure that caused massive humanitarian damage, destabilized the region, and disrupted global trade while failing to achieve regime change. China is depicted as a cautious but increasingly credible actor calling for stability and open trade, highlighting shifting global dynamics as the conflict leaves a volatile crisis marked by a fragile ceasefire, blocked oil flows through the Strait of Hormuz, and a high risk of renewed conflict.

China manifests a striking paradox. It is among the world’s most dynamic technological powers, producing breakthroughs in AI, electric vehicles, and advanced manufacturing at an accelerating pace, yet economic growth continues to slow. The reason is no mystery. As the government’s latest Five-Year Plan (2026-30) recognizes, China is experiencing a structural transition, not a cyclical slowdown. The old model is giving way to a new one, which has yet to take hold.

As missiles, bombs, and drones fly across the Persian Gulf, the prospects of an even more devastating war in the Pacific are strengthening. De-escalation of the new cold war between the United States and China must now become the world’s top priority. To that end, it is essential to explode a powerful myth that makes war more likely: the idea that China has cheated its way to prosperity.

China is strengthening Hong Kong as a global gold trading hub to expand its role in gold markets, reinforce Hong Kong’s financial position, and gradually increase renminbi usage in commodity transactions. The shift could contribute to a more multipolar gold market that coexists with established Western financial centers rather than displacing them.

The chaotic conditions created by the U.S./Israeli war against Iran are now in an escalatory phase. The reverberations will be severe worldwide.