The Shifting Global Order: Professor Jeffrey Sachs on America's Decline and China's Rise

Introduction

The global power dynamics of the 21st century are witnessing a profound transition. Once seen as the undisputed global leader, the United States now faces mounting challenges to its dominance, particularly from a rapidly ascending China. In his lecture titled "This is Why USA is LOSING to China," Professor Jeffrey Sachs, a distinguished economist and advisor to multiple UN Secretaries-General, presents a critical analysis of the systemic shifts redefining the global order. He argues that while the U.S. continues to rely heavily on military power and outdated strategies, China invests strategically in infrastructure, technology, education, and diplomacy, positioning itself as the emerging global leader.

This essay explores the major themes of Sachs' lecture, expanding on the historical context of American hegemony, the strategies that underpin China's rise, the internal shortcomings weakening the U.S., and the broader implications for global governance. In doing so, it reflects on the need for a new, cooperative international order rather than adversarial competition.

I. The Rise and Stagnation of U.S. Global Leadership

1. The Era of American Dominance

After World War II, the United States emerged as a superpower with unrivaled military and economic strength. The Bretton Woods institutions—the International Monetary Fund (IMF), the World Bank, and the United Nations—were established under significant American influence. The U.S. dollar became the world’s reserve currency. American corporations, culture, and political values were disseminated globally, symbolizing a "Pax Americana."

For much of the second half of the 20th century, U.S. leadership was characterized by:

• Technological leadership (from NASA to Silicon Valley)

• Economic growth

• Military superiority

• Soft power through culture, media, and higher education

However, Professor Sachs notes that this period of dominance fostered complacency and overreach, particularly in military affairs.

2. Overextension and Strategic Missteps

The Cold War forced the U.S. into expensive military commitments worldwide. After the Soviet Union's collapse, American foreign policy took a unipolar turn, intervening in conflicts often without broad international support. Sachs criticizes:

• The wars in Iraq and Afghanistan, costing trillions of dollars and resulting in little strategic gain

• Persistent military spending at the expense of domestic investments

• Failure to adapt to a multipolar reality

Instead of reinvesting in education, infrastructure, and healthcare, the U.S. became entangled in military-industrial priorities, weakening its long-term competitiveness.

II. China's Strategic Ascendancy

1. The Economic Miracle

In contrast to American drift, China pursued a long-term strategic vision. Since the late 1970s, China’s reforms under Deng Xiaoping emphasized:

• Opening up to foreign investment

• Building export-driven manufacturing capabilities

• Investing heavily in education and science

Today, China is the world’s second-largest economy by GDP and a leader in sectors such as renewable energy, artificial intelligence, 5G telecommunications, and electric vehicles.

Professor Sachs highlights how China's industrial policies, state-led capitalism, and infrastructure-driven growth (such as the Belt and Road Initiative) have expanded its influence across continents.

2. Investments in Infrastructure and Technology

China's Belt and Road Initiative (BRI) is more than just building roads and ports; it is about establishing deep economic linkages globally. Sachs points out that while the U.S. offers military alliances, China offers railways, power plants, and digital infrastructure.

Moreover, China is massively investing in:

• Research and Development (R&D): China has surpassed the EU and is on track to outpace the U.S. in R&D expenditure.

• Higher Education: Chinese universities are climbing global rankings, and China produces more STEM graduates annually than the U.S.

• Clean Energy: China is leading in solar, wind, and electric vehicle manufacturing, crucial for the future low-carbon economy.

These investments create not only economic gains but also soft power—as countries become increasingly dependent on Chinese technology and markets.

3. Long-Term Planning vs. Short-Termism

One of Sachs’ key criticisms is that China operates on decades-long strategic plans, while the U.S. is often mired in short-term political cycles dominated by electoral calculations. China's Five-Year Plans, Belt and Road, Made in China 2025—all reflect a future-oriented governance model, contrasting starkly with U.S. partisanship and policy instability.

III. America's Internal Challenges

1. Neglect of Domestic Foundations

Professor Sachs argues that America's underinvestment in key social sectors is a self-inflicted wound:

• Education: The U.S. lags in math and science performance compared to many developed countries, weakening its innovative capacity.

• Infrastructure: America's roads, bridges, airports, and public transport are aging, reducing productivity and quality of life.

• Healthcare: Despite spending more than any country on healthcare, outcomes (life expectancy, infant mortality) are mediocre.

While China is urbanizing with high-speed trains and smart cities, large parts of the U.S. remain neglected, particularly rural areas.

2. Polarization and Governance Paralysis

Political polarization further weakens America's ability to respond effectively to long-term challenges. Sachs emphasizes:

• Dysfunctional Congress

• Erosion of trust in institutions

• Rise of populism and anti-intellectualism

These trends hamper the ability to pursue coherent strategies in innovation, climate change, education, and diplomacy—areas where China is steadily progressing.

3. Economic Inequality

Sachs also points to the growing inequality in the United States as a major threat to its global competitiveness. While billionaires accumulate enormous wealth, a large segment of the American population struggles with stagnant wages, precarious work, and limited economic mobility.

This inequality breeds social unrest and political instability, undermining the social cohesion necessary for national renewal.

IV. Geopolitical Implications

1. The Risk of a New Cold War

Professor Sachs warns against the growing antagonism between the U.S. and China, cautioning that framing global affairs as a zero-sum competition is dangerous. He notes:

"The obsession with containment and confrontation risks a repeat of Cold War dynamics that humanity can ill afford."

Issues like climate change, pandemics, and nuclear proliferation require cooperation, not confrontation.

2. Multipolarity and the Decline of Western Hegemony

We are moving toward a multipolar world, where power is distributed among several major players—China, the U.S., the EU, India, and others. Sachs argues that the U.S. must accept this reality and adapt accordingly rather than trying to impose 20th-century hegemony on a 21st-century world.

3. Reforming International Institutions

Institutions like the UN, IMF, and World Bank must be reformed to reflect the emerging realities. Sachs suggests:

• Giving the Global South greater voice and representation

• Aligning global priorities with sustainable development and climate goals

• Moving beyond U.S.-centric or Western-centric governance models

V. Lessons for the Future

1. Investment in Human Capital

The U.S. must prioritize universal, high-quality education from early childhood through tertiary levels, especially in STEM fields, if it is to maintain a competitive economy.

2. Infrastructure Renewal

Renewing physical and digital infrastructure would boost economic growth, job creation, and international competitiveness. Programs like the Infrastructure Investment and Jobs Act are a start, but much more is needed.

3. Embracing Multilateralism

Instead of viewing China’s rise purely through a lens of fear, Sachs advocates for the U.S. to embrace multilateralism:

• Cooperate on climate change (where China and the U.S. are the two largest emitters)

• Share scientific and technological advancements

• Build global norms around cyber security, biotechnology, and AI

4. Addressing Inequality

A more inclusive economy—through progressive taxation, universal healthcare, labor protections, and affordable education—would strengthen American democracy and resilience.

Conclusion

Professor Jeffrey Sachs' lecture offers a sobering yet hopeful roadmap for navigating the future. The United States' relative decline is not inevitable, but without significant policy shifts and a recognition of global realities, it will continue. China's ascent is a testament to the power of strategic planning, investment, and education—not merely authoritarian governance, as often simplistically portrayed.

Rather than entering another destructive cycle of great power conflict, Sachs envisions a world where major nations cooperate to solve humanity’s shared challenges—poverty, pandemics, and climate change—while maintaining their distinct identities and interests.

Ultimately, the 21st century will not belong to a single nation. It will belong to those who invest in knowledge, build inclusive economies, strengthen institutions, and commit to peaceful, sustainable development. The lessons are clear; the question is whether America—and the world—are ready to heed them.

Note: This essay is based on the themes presented in Professor Jeffrey Sachs' lecture "This is Why USA is LOSING to China." For a more in-depth understanding, viewers are encouraged to watch the full lecture available on YouTube