【新三板报告】2017年3月陕西省新三板企业市值排行榜

Amid global turbulence, the reckless policies of the current U.S. administration have laid bare the decline of American hegemony, bringing the contours of a post-American era into sharper focus.

Economic hegemony in a self-perpetuating decline

For decades, U.S. economic hegemony has relied not on free-market principles but on the dollar's privileged status to extract global value. Such a system has prioritized capital-driven financial expansion at the expense of the real economy.

After World War II, the United States rapidly expanded its global financial network while offshoring much of its manufacturing, leading to a heavy reliance on Treasury debt. Soaring debt levels drove up yields and diverted capital toward financial markets and away from industry, creating a vicious cycle of industrial hollowing-out, debt crises, and economic decline.

Today, U.S. federal debt exceeds $37 trillion, while manufacturing's share of GDP has dropped to below 10 percent.

Unlimited borrowing has also pushed fiscal deficits to record highs. In 2024, the United States ran a deficit of $1.8 trillion—half of which was spent on interest payments. By mid-fiscal year 2025, the deficit had already exceeded $1.3 trillion. The Congressional Budget Office (CBO) warns that federal debt could surge by $20 trillion over the next decade.

Amid this fiscal pressure, the administration introduced the "One Big Beautiful Bill Act"—a sweeping package of infrastructure, industrial subsidies and social welfare programs funded almost entirely by borrowing. Markets have already recognized that such unchecked spending only increases the debt burden and risks long-term insolvency.

"The dollar is our currency, but it's your problem," an American official once said. Today, the dollar problem has come back to haunt its creator.

Ray Dalio, founder of Bridgewater Associates, warned that waning demand for U.S. Treasuries may force the government to raise interest rates further, pushing the economy into a “death spiral”.

The erosion of soft power

Since taking office, the U.S. administration has abandoned its idealistic global vision in favor of a transactional mindset fueled by resentment and self-interest. This shift has projected arrogance and coercion, recklessly depleting America's soft power.

A key indicator is the erosion of U.S. international credibility. The administration has revived a pattern of unilateral withdrawals—scrapping the Iran nuclear deal, exiting the Paris Agreement, and suspending most foreign aid.

This go-it-alone approach marks a sharp departure from the multilateral order the U.S. once championed, leaving the U.S. increasingly isolated and distrusted. In his final writings, Joseph Nye—known as the father of “soft power”—warned that America was dismantling its most potent global asset.

Surveys confirm this disillusionment. A Morning Consult poll shows China's net favorability rising from negative in early 2024 to 8.8 by May 2025, while the U.S. rating plunged from 20 to -1.5. A Latinobarómetro poll in Mexico found that 64 percent of respondents favored expanding trade with China, compared to just 37 percent for the United States. Data from global polling firm Ipsos confirms this reversal: America's approval rating fell from 66 percent in 2015 to 46 percent in 2025, while China's rose from 47 percent to 49 percent

As one Australian respondent bluntly put it, "We can live without America, but the world can't live without China."

A decline in global influence

In 1941, Henry Luce, founder of Time magazine, envisioned a peaceful world under U.S. leadership. Eight decades later, that leadership is no longer assured.

On Ukraine, bold promises gave way to ambiguity. On the Middle East, offshore balancing faltered, with Israel increasingly dictating terms. On Iran, the U.S. engaged in talks while launching strikes.

Even traditional allies are less willing to follow its lead. Europe has imposed counter-tariffs, and four of the Five Eyes countries have sanctioned Israeli officials despite U.S. objections. A June 2025 Pew poll found that in all America's G7 allies, over half expressed no confidence in American leadership in global affairs, characterizing it as “arrogant and dangerous”.

Around the world a powerful “second awakening” is underway. BRICS and the Shanghai Cooperation Organization are gaining traction, offering developing countries alternative platforms for a more equitable and multipolar international order.

Dozens of developing economies have jointly filed WTO complaints against U.S. retaliatory tariffs. Latin American countries have formed an "anti-tariff alliance". Central American nations are speaking out against U.S. immigration policy.

The decline of U.S. soft power, industrial capacity, and global standing signals more than a transitional phase—it heralds the emergence of a post-American world order.

The world is no longer waiting for Washington to lead.

(The author is a commentator on international affairs, writing regularly for Xinhua News, Global Times, China Daily, CGTN etc.)