China’s economy has weather the pandemic as well as any other nation’s has in the last few years, but the future seems uncertain as the world order is reshuffled as borders and regulations return to pre-outbreak norms.

The international financial infrastructure has long been dominated by Western institutions. China’s advances in digital currency could help spread its influence on global commerce enough to challenge the hegemony of the U.S. dollar.

China’s fundamentals are resilient and robust, and the trend points to normalcy and growth. Trade is up, inflation has been controlled, and while the U.S. Fed’s rate hike pushed many currencies down, the Chinese yuan has remained stable.

The systemic challenge for the U.S. is not China but the worst inflation in 40 years. In fact, fragmentation does not seem to be happening in the real world. Even an Asia-Pacific version of NATO will not likely divide the region, as China will continue to be a major trade partner.

The American economy will inevitably experience a Volcker-style contraction — think early 1980s — and it will have a global impact. Today’s inflation is stubborn and structural, and it will be virtually impossible to bring it down to 2 percent without tipping the economy into recession.

Europe has taken a strategic stance when it comes to its relationship with the U.S. and with China. While the U.S. has strengthened ties with its European allies to contain China, Europe also supports China’s monetary ambitions regarding the RMB.

Globalization is at a crossroads. Compounded by U.S. geopolitics and the cost of economic development, de-globalization has huge economic and human damages.

The Russia-Ukraine conflict has provided new impetus to the centennial change in global order. Combined with the impact of global pandemic, this conflict has accelerated the transformation of international economic order from a US-dominated globalization process to the globalization driven by coexistence of multiple parallel systems.

The China-Pakistan Economic Corridor (CPEC) is an essential component of Beijing and Islamabad’s economic relationship, but the CPEC has faced extensive pressures internally and externally, including strong criticism from the U.S. and India.

A robust semiconductor supply chain without China is out of question, while complimentary China-U.S. cooperation would make the global supply chain both complete and resilient for years to come.