Of course, it would be absurd to pretend that China does not face major challenges. In the short term, there is plenty of evidence that a property bubble is building in big cities like Shanghai, and inflation is on the rise. Over the long term, China has alarming political and economic transitions to navigate. The Communist Party is unlikely to be able to maintain its monopoly on political power forever. And the country's traditional dependence on exports and an undervalued currency are coming under increasing criticism from the United States and other international actors demanding a "rebalancing" of China's export-driven economy. The country also faces major demographic and environmental challenges: The population is aging rapidly as a result of the one-child policy, and China is threatened by water shortages and pollution.
Although Americans are only 4% of the world's population, they consume 25% of its resources and produce 25% of its unsustainable pollution. The US has 865 foreign bases and a military and CIA presence in every corner of the globe. The country enjoys such a privileged position, this author writes, because it has made itself an imperial power. But the United States' ability to afford the cost of maintaining its empire is waning. Sooner or later, the deficit will force Washington to limit its imperial overstretch and bring its troops home.