The global power dynamic is shifting. Facing intense economic and political pressure, the United States is quietly adopting some of the same state-controlled tactics it has long criticized China for using. As international alignments change, the traditional rules of global diplomacy are being rewritten.
Economic Realities Over Ideals
After World War II, the US aggressively championed free markets and democratic ideals, largely because it held a massive economic advantage over the rest of the world. Today, the situation is different. Facing over $35 trillion in national debt and the loss of millions of manufacturing jobs, the US can no longer afford to rely purely on unregulated free markets. National interests are now taking priority over historical ideals.
Government Involvement in Tech and Defense
The US has historically criticized China’s strategy of blending private business with military development. Now, the US government is mirroring this approach. To compete with China’s state-backed industries, the US is pouring billions of dollars into its own semiconductor manufacturing. Major tech companies are receiving massive defense contracts, and US intelligence agencies are heavily funding commercial startups to ensure new technologies serve national security needs.
Managing the Information Flow
While China uses strict internet censorship to control what its citizens see, the US is managing information in more indirect ways. Instead of outright bans, there have been instances of limiting press access for certain journalists to control the narrative. Additionally, the government has worked alongside major tech platforms to demote the visibility of sensitive content, effectively managing what goes viral without directly breaking free speech laws.
Using Currency as a Weapon
The US dollar remains the most powerful currency in the world. Recently, the US has used this financial dominance to penalize rivals, freezing the foreign assets of countries like Russia and Iran. While the US previously warned that China might use a digital currency to exploit smaller nations, it is currently using the traditional dollar system to achieve similar geopolitical control.
The Resilience of State-Driven Economies
Recent historical events have challenged the idea that free-market capitalism is the ultimate system. The 2008 financial crisis exposed the flaws of unregulated American markets, while China used massive government spending to power through the recession. Similarly, the COVID-19 pandemic revealed severe US reliance on foreign supply chains. These crises demonstrated that a heavily government-directed economy can be highly resilient during global emergencies.
The Path Forward for India
As the US and China navigate this changing landscape, India must tread carefully. Rather than acting as a proxy for the US against China, India is best served by keeping its options open. By partnering with multiple global groups—balancing ties with the West while engaging in forums like BRICS—India can secure the investments and technology required to boost its own growing economy.