After a rapid 10-fold expansion in university education that produced 11 million graduates by 2022, China's youth unemployment suddenly doubled to 20% and continued climbing to 21.3% a year later. In a panic, Beijing manipulated its statistical methods to produce a lower figure and began fabricating numbers to conceal a youth unemployment rate that may already have reached 30% or even 40%. The potential power of youth to break the hold of the communist state was evident in November 2022, when protests against zero-Covid lockdowns erupted in at least 17 cities across China, with countless thousands of youths chanting, "Need human rights, need freedom," and calling for President Xi Jinping and the Communist Party to "step down."
The country's macroeconomic statistics are growing ever grimmer as well. After decades of rip-roaring growth, its gross domestic product, which peaked at 13%, has recently slumped to 4.6%. Adding to its invisible economic crisis, by 2022 the country's 31 provinces had shouldered crippling public debts that, the New York Times reported, reached an extraordinary "$9.5 trillion, equivalent to half the country's economy," and some 20 major cities have since leaped into the abyss by spending wildly to give the economy a pulse. Seeking markets beyond its flagging domestic economy, China, which already accounted for 60% of globa l electric vehicle purchases, is launching a massive export drive for its cut-rate electric cars which is about to crash headlong into rising tariff walls globally.
Even China's daunting military may be a bit of a paper tiger. After years of cloning foreign weapons, Beijing's arms exports have reportedly dropped in recent years after buyers found them technologically inferior and unreliable on the battlefield. And keep in mind that, even as its military technology has continued to advance, China hasn't fought a war in nearly 50 years.
Nonetheless, President Xi keeps promising the Chinese people that Taiwan's reunification with "the motherland is a historical inevitability." However, should Beijing launch a war on Taiwan, whether to fulfill its promise or distract its people from growing economic problems, the result could prove catastrophic. Its inexperience with combined arms -- the complex coordination of air, sea, and land forces -- could lead to disastrous losses during any attempted amphibious invasion, and even a victory could do profound damage to its export economy.
The End of the American Century
When it comes to that other great imperial force on Planet Earth, let's face it, Donald Trump's second term is likely to mark the end of America's near-century as the world's preeminent superpower. After 80 years of near-global hegemony, there are arguably five crucial elements necessary for the preservation of U.S. world leadership: robust military alliances in Asia and Europe, healthy capital markets, the dollar's role as the globe's reserve currency, a competitive energy infrastructure, and an agile national security apparatus.
However, surrounded by sycophants and suffering the cognitive decline that accompanies aging, Trump seems determined to exercise his untrammeled will above all else. That, in turn, essentially guarantees the infliction of damage in each of those areas, even if in different ways and to varying degrees.
America's unipolar power at the end of the Cold War era has, of course, already given way to a multipolar world. Previous administrations carefully tended the NATO alliance in Europe, as well as six overlapping bilateral and multilateral defense pacts in the sprawling Indo-Pacific region. With his vocal hostility toward NATO, particularly its crucial mutual-defense clause, Trump is likely to leave that alliance significantly damaged, if not eviscerated. In Asia, he prefers to cozy up to autocrats like China's Xi or North Korea's Kim Jong-un instead of cultivating democratic allies like Australia or South Korea. Add to that his conviction that such allies are freeloaders who need to pay up and America's crucial Indo-Pacific alliances are unlikely to prosper, possibly prompting South Korea and Japan to leave the U.S. nuclear umbrella and become thoroughly independent powers.
Convinced above all else of his own "genius," Trump seems destined to damage the key economic components of U.S. global power. With his inclination to play favorites with tariff exemptions and corporate regulation, his second term could give the term "crony capitalism" new meaning, while degrading capital markets. His planned tax cuts will add significantly to the federal deficit and national debt, while degrading the dollar's global clout, which has already dropped significantly in the past four years.
In defiance of reality, he remains wedded to those legacy energy sources, coal, oil, and natural gas. In recent years, however, the cost of electricity from solar and wind power has dropped to half that of fossil fuels and is still falling. For the past 500 years, global power has been synonymous with energy efficiency. As Trump tries to stall America's transition to green energy, he'll cripple the country's competitiveness in countless ways, while doing ever more damage to the planet.
Nor do his choices for key national security posts bode well for U.S. global power. If confirmed as defense secretary, Peter Hegseth, a Fox News commentator with a track record of maladministration, lacks the experience to begin to manage the massive Pentagon budget. Similarly, Trump's choice for director of national intelligence, Tulsi Gabbard, has no experience in that highly technical field and seems prone to the sort of conspiracy theories that will cloud her judgment when it comes to accurate intelligence assessments. Finally, the nominee for FBI director, Kash Patel, is already promising to punish the president's domestic critics rather than pursue foreign agents through counterintelligence, the bureau's critical responsibility.
By the time Trump retires (undoubtedly to accolades from his devoted followers), he will have compressed two decades of slow imperial decline into a single presidential term, effectively ending Washington's world leadership significantly before its time.
A New World Order?
So, you might ask, if those four empires do crumble or even collapse, what comes next? The forces of change are so complex that I doubt anyone can offer a realistic vision of the sort of world order (or disorder) that might emerge. But it does seem as if we are indeed approaching a historical watershed akin to the end of World War II or the close of the Cold War, when an old order fails with utter finality and a new order, whether redolent with promise or laden with menace, seems inevitable.
Copyright 2024 Alfred W. McCoy
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