Geopolitics Explained

Geopolitics Explained

Leverage and Decline: The U.S.–China Balance of Power

The United States, China, and Who Can Pressure Who?

Dylan Muggleton's avatar
Dylan Muggleton
Oct 20, 2025
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Contents

  1. Introduction

  2. China’s Insulation To U.S. Aggression

  3. The Floodgates Open

  4. Can The United States Pressure China At All?

  5. Concluding Remarks


Bitesize Edition

  • Leverage and Logistics - China’s long-term focus on logistics and self-sufficiency has insulated it from U.S. pressure. While Washington built its power through global dominance, Beijing built resilience through control of supply chains, manufacturing, and critical minerals.

  • Trump’s Economic Leverage Game - Trump’s push for a weaker dollar, tariffs, and new trade arrangements aims to rebalance global trade and restore U.S. manufacturing. But this pursuit of “resiliency” exposes America’s dependence on imports and highlights China’s decades-long head start.

  • Cracks in Dollar Dominance - From the Power of Siberia 2 pipeline deal to reduced Chinese purchases of U.S. farm goods, the dollar’s grip on global trade is slowly loosening. China’s leverage lies in its ability to play the long game.

  • A Shift from Globalisation to Regionalisation - The United States’ pivot to South America mirrors China’s global outreach, a sign of an emerging multipolar world built on regional resilience. Yet, in trying to regain leverage, Washington is discovering that Beijing’s patience may be its greatest weapon.


Introduction

Before my discussions on the Middle East over the last few weeks, I set out potential scenarios for the long-term maritime future in the Indo-Pacific. In general, China holds structural advantages and is increasingly seen as a quicker innovator in several key sectors. The United States is clearly the world’s strongest naval power and will remain this way for decades to come.

In a tussle between the two global superpowers, it’s worth considering where one could hurt the other. Today, I’ll discuss this through the lens of leverage.

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