James E. Fanell and Bradley A. Thayer
From the war in Ukraine to the horrific terror attack on Oct. 7 and the subsequent conflict in the Middle East to the roiling waters of the South China Sea, the world today is in crisis. The causes are not found in Moscow or Tehran alone, but primarily in Washington and Beijing. They are the consequence of two fundamental and interrelated grand strategic mistakes made by the U.S. First, the failure to understand the threat from the People’s Republic of China. Second, the failure to balance against it. As a result, the U.S. is at risk of losing its dominant position to an emboldened PRC working in cooperation with Vladimir Putin’s Russia and the mullahs in Iran. Surveying the global unrest, Americans must comprehend three reasons why they face this dire strategic landscape.
First, U.S. elites did not perceive the threat due to the triumphalism of the “End of History” – the false assertion that modernizing nations like China were on the path to democratization and free market economics. Great power conflict was seen as an artifact of the past. This hubris contributed to what we term “threat deflation,” where year after year U.S. decision-makers consistently dismissed or underestimated the threat from the PRC.
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