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Unveiling the importance of the USA’s Economic Model amidst the Rise of China

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The insightful framework of Graham-Allison’s thesis and the ominous Thucydides Trap shed light on the contrasting paradigms of two nations and two different systems aligned to get global dominance. The thesis has the historical backgrounds that drove the conflicts as inevitable results between the rising global power and existing power, the conflicts of the city-states of Athens and Sparta as a historical example that drives the importance of Thucydides’ ancient philosophy. The thesis holds its relevance in the economic domains in current scenarios. China is very important position as a global powerhouse in the economic domains while the United States is looking forward to getting its position in sustainable stands. There is no denying the fact that multipolarity has its value and importance in the development globe but in the context of the current scenario the viability seems to be irreflective, especially in the context of the USA and China. The rise of former Soviets under the banner of communism failed heavily and the winning of modern capitalism, the rise of China under a prescribed state-owned functioning economy, and the antagonistic approach of China in the region and inside China getting west in trembling thoughts about the future behavior of China if Chinese system is accomplished in the global economic order.

Goldman Sachs economist predicted the outlook for the global economy which shows the greatest growth worldwide and changing dynamics of the global political-economic orders, most importantly the rising China is one of the major threats to the USA in this regard. According to the reports, the Chinese Gross Domestic Product will surpass the United States by 2035 while the Purchasing Power Parity has already taken by China. According to World Bank data, the US has an economic volume of $23 trillion by 2022 while the Chinese economy has a volume of $18 trillion. By the mid of 1900s, the US remained on the top of the borders of economic superiority in the global stages, while 12% of the Chinese GDP grew with the comparison to the United States of America.