It's the dominant geopolitical narrative of our era: The global economy is cleaving into two blocks as an ascending China and declining US clash over trade, technology and the pandemic.
After Vladimir Putin’s invasion of Ukraine and the sanctions it provoked from the US and allies, that divide appears sharper than ever — but the contest also looks more uneven. The economic isolation imposed on Russia has been a stark reminder of the persistence of American power.
China is catching up to the US in terms of gross domestic product, and already eclipsed it in trade and manufacturing. But when it comes to the architecture of money that underpins the world economy, America and its dollar-led system remains the undisputed leader.