What is the biggest misunderstanding among Americans about China? How can we clearly explain Chinas development philosophy to them? In Sino-US relations, are there only winners and losers?
Recently, Professor Wang Wen, Dean of the Chongyang Institute of Finance at Renmin University of China and Dean of the Global Leadership Academy, was invited to have an in-depth conversation with the American political blogger Cyrus Janssen. They discussed various topics, including the transformation of the international order in the post-American era and the declining dominance of the US dollar in finance. Additionally, they focused on the current state of Sino-US relations and analyzed in detail the common misunderstandings among Western societies regarding Chinas path toward peaceful development and its diplomatic strategies.
Professor Wang, my first question is: Many Westerners still believe that the global order led by the United States remains stable. But from your perspective, has the world begun to transition towards a new system that hasnt yet been fully recognized?
Yes, I believe the world has changed. Although the United States remains the most powerful nation and also the most capable source of trouble in the world, the system of American hegemony is on the verge of collapse. The current international order is in a period of transition, as various forces are working together to reshape it. This transition may be lengthyperhaps taking five years, ten years, or even longer. However, four clear characteristics of de-Americanized hegemony are already evident. I will explain them one by one for you.
The first characteristic is the multipolarization of the power structure within the West. The wave of populism and anti-globalization sentiments has eroded the credibility of Western institutions. The United States itself has begun to show signs of strategic retreat, no longer willing to bear the costs of global public goods indefinitely. At the same time, emerging nations such as China, India, and Russia are gradually gaining significant influence in global affairs, thereby pushing the international system towards a multipolar pattern.
The second characteristic is the decentralization of economic and technological power. Chinas large-scale production in the field of green technologies, including solar energy, wind energy, electric vehicles, and batteries, has not only reduced the cost of decarbonization globally but also fundamentally reshaped energy geopolitics. These technological and industrial advantages are transforming into new forms of influence, effectively replacing the technological dominance that was traditionally held by the West. Moreover, China now holds a decisive lead over the United States in key areas such as infrastructure construction, 5G technology, manufacturing, power generation, and trade in goods. This dominance is actively reshaping the global economic power dynamics. Although the United States still maintains its lead in finance and overall GDP, current trends indicate that China is likely to surpass the United States around 2035 and become the worlds largest economy.
Thirdly, there is an analysis of the security architecture. The military alliance system led by the United States is currently facing a crisis of trust. An increasing number of European countries are actively seeking strategic autonomy. People increasingly believe that relying excessively on American security guarantees is no longer a sustainable strategy. As we have seen, during the recent Middle Eastern crisis, Iran, as a medium-sized power, successfully challenged the United States through asymmetric means (such as hybrid warfare), thereby breaking Americas long-standing monopoly over regional security matters. Even Americas most traditional allies are now unwilling to provide military support to the United States anymore. Therefore, the era of American military hegemony has actually come to an end.
Charles Kupchan, a professor of international affairs at Georgetown University and former senior director for European affairs at the U.S. National Security Council, published his book The End of the American Era in 2002.
My conclusion is that its time to discuss the post-American era. In fact, decades ago, American scholars already published books with the theme of the post-American era. However, the arrival of this new era does not mean that a new global order will emerge immediately. Therefore, I believe that the next decade will still be a transitional period. As you mentioned, this period will be characterized by the coexistence of different order concepts, with competition and integration intertwined. From Chinas perspective, it emphasizes an international order centered around the United Nations, advocating for its supplementation and reform rather than revolutionary changes. This is achieved through mechanisms such as the Belt and Road initiative and the Asian Infrastructure Investment Bank.
My conclusion is that I believe that in the next decade, or even longer, international order will likely place more emphasis on pluralistic governance, regional coordination, and collective security, rather than being dominated by a single hegemonic power. This is my view.
I believe that we have indeed seen this transformation taking place over the past few years. We have seen Chinas continuous rise, becoming a very powerful global superpower. At the same time, we have seen the decline in Americas reputation and influence around the world.
As tensions in the Middle East escalate and the ongoing conflicts in Iran continue, we see oil prices soaring. We also see that financial markets become more volatile. Do you believe this is a short-term fluctuation, or will it accelerate deeper changes within the global financial system?
I believe this is definitely not a simple short-term fluctuation. On the contrary, it is accelerating a profound transformation within the global financial system, and its effects will be lasting and structural.
Lets talk about the oil-dollar system. Over the past few decades, this system has faced challenges and now seems unstable. For decades, the basic logic of the global economy has been based on a cycle where oil-producing countries export oil in exchange for dollars, which are then invested back into the U.S. financial market. However, under the current conflict situation, the reliability of the United States as a security provider is being questioned. The security of its allies energy supply lines has also been compromised. This has led many central banks to temporarily sell off U.S. government bonds, thereby accelerating the process of de-dollarization. This, of course, weakens the position of the dollar as the worlds leading reserve currency and directly challenges its status as such.
Meanwhile, I believe that we all know now that oil prices have soared to over $100 per barrel, and in some cases, even higher. This has forced countries to reevaluate their energy strategies and accelerate the transition to new energy sources worldwide. All of these efforts are aimed at breaking free from the geopolitical constraints that bind them to their crucial energy supply lines.
In mid-March this year, the Ras Laffan Industrial City in Qatar was attacked during the US-Iran War. Source: Social Media
Another very important characteristic is the restructuring of the logic surrounding safe-haven assets. Traditionally, gold has been the preferred safe-haven asset during geopolitical conflicts. However, during this Middle East crisis, gold prices experienced a sudden decline. This indicates that market dynamics are changing. Capital may now be attracted to relatively independent and low-volatility markets, such as Chinas A-share market, or it may be used directly to hedge risks in the new energy industry.
In my opinion, over the past month or so, the conflicts in the Middle East have effectively served as a stress test, testing the resilience of the existing dollar-centered financial system. This process has revealed many fundamental vulnerabilities within this system. Therefore, I conclude that perhaps we can say that the dominance of the dollar as a global financial currency is beginning to decline.
Yes, I believe this is absolutely true. In fact, during the recording of this episode, a new report showed that the value of the US dollar continues to decline, and its share as the worlds reserve currency is actually decreasing. Therefore, the share of the US dollar in global reserve currencies is likely to be at its lowest level in twenty-five years. We can see that more and more countries around the world are holding fewer dollars. I think the you mentioned earlier is very valid.
We see that the BRICS countries are a response to the international order led by the United States. As the BRICS countries expand and their economic influence grows in the Global South, who do you think will be the main winners and losers at this stage of geopolitical and economic restructuring?
In fact, I dont really like using terms like winners or losers to describe this current transformation. I prefer using terms like growth or decline to describe long-term trends. The ongoing crisis in the Middle East continues to drive the rise of the Global South. These countries are no longer mere passive recipients of international norms. The countries of the Global South are now leveraging platforms such as the BRICS mechanism and the Shanghai Cooperation Organization to place development issues at the center of global governance. The collective bargaining power of the Global South, especially in areas like energy, food, and critical minerals, has reached an unprecedented level.
Even in situations where conflicts are provoked in the United States, countries in the Global South are gaining access to large-scale space resources that facilitate development and greater strategic autonomy. These countries generally adopt non-aligned and pragmatic foreign policies. By refusing to side with any of the major powers in their competition, they gain more room for maneuvering their policies and more opportunities for development. Additionally, through platforms of South-South cooperation, such as the Belt and Road initiative or the African Continental Free Trade Area, they are building internal networks that rely less on traditional markets in the Global North.
In contrast, Western powers are facing a decline in their strength. Existing mechanisms, such as the G7 and the Bretton Woods system, are undergoing serious challenges to their credibility. These mechanisms lack representativeness and are unable to effectively address global challenges, resulting in a gradual weakening of their global influence. Look at the United States today: its unilateralism and protectionism are beginning to have negative effects. Western-led policies that involve deregulation, disruption of supply chains, and strategies like small courtyards with high walls have led to increased domestic inflation in these countries. This has undermined the stability and efficiency of the global economy, ultimately harming Western interests. Additionally, both the soft power of the United States and its attractive development model are declining. Frequent internal problems within the West, including populism, political polarization, and social divisions, have eroded the overall attractiveness of its development model.
Therefore, my conclusion is that today, the diverse and successful development paths pioneered by countries in the Global South offer the world a wider range of choices. We have more diverse options available. I dont know if you are aware of this term used by Chinese policymakers: a century-long transformation. This means that many phenomena that have never been seen in the past century are taking place. Therefore, I believe that the description of this century-long transformation by Chinese policymakers is very accurate.
I would like to talk about the bilateral relations that I believe are the most important in the world. Of course, that is the relationship between the United States and China. In the United States, we often view this relationship as a zero-sum game, meaning that one party must win while the other loses. However, what do you think is the biggest misunderstanding regarding Chinas global strategy today?
This is a very important issue. In fact, the biggest misunderstanding of Chinas grand strategy worldwide today is the perception of China as a challenger who aims to overthrow existing international order, rather than as a country committed to creating new possibilities and opportunities for cooperation. I believe that, based on their own history of colonial expansion, Western countries tend to interpret Chinas rise through a zero-sum logic of hegemony. This mindset leads to fundamental strategic misjudgments. The West equates Chinas development strategies with expansionism. In Western narratives, the rise of a major power inevitably involves military conquest and the division of territory. Therefore, they view the Belt and Road initiative as a territorial expansionist act, and Chinas efforts to defend its sovereignty as an aggressive action.
However, the logic that supports Chinas development is deeply rooted in the inward-oriented nature of its agricultural civilization. Its core principle is to develop itself for the benefit of others, rather than to conquer others in order to strengthen itself. Therefore, we all know a very typical example: six hundred years ago, a very famous person named Zheng He sailed to the Western Seas seven times. He led a fleet far larger than Columbuss. Yet, he never occupied even an inch of foreign land. These historical facts serve as evidence of Chinas peace-oriented nature. This is the first misunderstanding.
Zheng Hes Voyages Around the World – Map Publishing House of China
I believe the second misunderstanding lies in viewing cooperation for mutual benefit as a trap. The concepts proposed by China, such as the concept of a community with a shared future for mankind, as well as the principles of consultation, joint construction, and shared benefits, are ideas and principles offered by China. These aim to provide a non-confrontational and non-exclusive framework for cooperation in globalization. However, the problem is that Western media often view these concepts as tools for competing for ideological leadership. In reality, Chinas infrastructure projects in Africa carry no political conditions, and it does not interfere in internal affairs. Therefore, its goal is to break through development bottlenecks and create a shared market. This goal is fundamentally different from the characteristics of resource exploitation during the colonial era.
The last misunderstanding is the view of multi-polarization as a threat. China does not seek to dismantle existing institutions such as the United Nations or the World Bank. Instead, China advocates for reforms to ensure that these institutions become more representative and inclusive. China defends multilateralism, but opposes any single country or group monopolizing the power to set rules.
So, in short, I believe that a very important or significant phenomenon today is the rise of China. This proves that a major country can follow a path that is unprecedentedthat is, a country can rise without resorting to war or exploiting other nations. This is truly remarkable. Look at the past five hundred years; there were so many wars. But China has managed to rise over the past forty years without being involved in any wars at all. Thats something truly impressive.
I agree; this is a very important point. Of course, I try to discuss this with my audience. When I traveled around the world, I said, Look, I lived in China and traveled there for over twenty years. I believe that the world can learn a lot from China. I think its very important to study this topic. I believe this is why we invite you to participate in this program, so that we can discuss Chinas perspective with many viewers around the world.
Professor Wang, I believe todays conversation is very important. You have indeed provided us with many insights into how the Chinese think. My biggest takeaway is that China is indeed working hard to create a more inclusive world. When they consider the BRICS countries and the Belt and Road initiative, Chinas main goal is to ensure that other countries can thrive and live together in a better world. After all, we have only one planet, and we must find ways to achieve a win-win situation for everyone. I think this is a great idea. In the United States, we often view things as zero-sum gameswhere one must lose if another wins. The US wants to become a global hegemon. But as you mentioned today, I believe China certainly wants to become a participant in the world. However, it definitely hopes to create a system where everyone can win.
So, Ive prepared one last question for todays interview: What do you think is the biggest misunderstanding among many Americans about China? My channel indeed has many American viewers. If you could convey a message to Americans, what would that message be?
Yes, its a very important issue. I dont know if you know, or if the audience knows, what the Chinese name for the United States is. We translate United States of America as which means Beautiful Country. This is the Chinese name for the United States. What does this mean? It means that, for most Chinese people, in their eyes, the United States is considered a beautiful country.
But the problem is that, for many ordinary Americans, they demonize China. They feel nervous and anxious, fearing that China might disrupt the existing global order. Some voices from Western media, or from new media platforms like Twitter and Facebook, have a significant misunderstanding of China.
I believe that the goal of the Chinese people is to make life better and better. For the Chinese government, most of its efforts are focused on solving problems within China itself. With a population of 1.4 billion people, addressing the livelihood issues of these 1.4 billion people is not an easy task. This is why China strives to promote a new globalized and interconnected system that is inclusive, fair, and cooperative. We simply want to make friends with everyone. We dont want to be enemies of anyone. We just want to contribute to the sustainable development of the world.
So, friends from the United States, ordinary Americansdont demonize China. The Chinese people want to be friends with every American. We simply want to make the world a better place. Therefore, I believe we should move away from our misunderstandings about China.
Yes, Professor Wang, thats a truly wonderful response. I want our viewers to know that I have been traveling to China for over twenty years. Many of my American friends ask me, Cyrus, what does China look like? How is an American treated in China? Over the past twenty years, every time I visited China, I received only respect. Just as you said, the Chinese people ask me, Where are you from? And I say, I come from America. They then say, Oh, America a great place!
I believe it is necessary for our viewers to see a real and objective China. There are too many misunderstandings about China in the outside world at present. I hope everyone will understand that in order to achieve global prosperity, it is essential to maintain good relations between the United States and China. The core message I repeatedly emphasize on this channel is: When the United States and China work together, the entire world will benefit. I believe this statement is crucial, both for 2026 and for a future even further ahead.
