The West's dominance is waning as China, India, and other nations rise to prominence in a new epoch of human history, according to Aakar Patel.
The global economic landscape is undergoing a significant transformation, with the West's dominance slowly waning and the rise of emerging economies becoming increasingly apparent.
In the past four decades, the United States has witnessed a dramatic shift in its manufacturing sector. In 1980, there were 512,000 Americans employed in steel plants, a number that fell to 270,000 in 1990 and 70,000 last year. Despite producing roughly the same amount of steel today as in 1990, the number of Americans employed in this sector has decreased significantly, thanks to automation and efficiency.
Meanwhile, the US economy, which grew at 2% last year, is facing a potential recession this year, meaning a contraction in its economy. This is a stark contrast to the 1990s when the country's manufacturing sector accounted for 16% of the economy, a figure that has since dropped to 10%.
Across the Atlantic, the United Kingdom's GDP grew under 1% in 2023, under 1% in 2024, and might grow at 1% this year. The decline in the UK's economic growth mirrors that of the US, highlighting a global trend.
On the other hand, India and China are leading the charge in economic growth. India's share of global GDP, which was the same as China's in 1990, stands at 3.6% today. China's share of global GDP, meanwhile, has grown from 1% in 1990 to 17% today. China's economy grew strongly at 5.3% year-on-year in H1 2025, led by industrial output, exports, and investment, though consumer demand and private investment lag behind.
The rise of these economies has not been without its challenges. The US, for instance, has implemented universal tariffs, which will affect the whole world, including US allies in Europe, Canada, and Australia. These tariffs, which will be unveiled on April 2, are justified as necessary to safeguard US national security and protect Americans' privacy by keeping foreign adversaries from manipulating technologies.
The US commerce department has also imposed a 100% tax on Chinese electric cars when imported into the US, making them twice as expensive, and a ban on Chinese car software.
The dominance of the US and Europe and their influence will continue to decline, as they are forced to share power. The combined American and European share of the world economy was 51% in 2009 and has been declining since.
The people in the US, Britain, the European Union, Canada, Australia, and New Zealand together make up 10% of the world's population. The rise of the rest of the world, such as China, India, Africa, and Latin America, has produced fractures in international relations.
Despite these challenges, it's important to note that by any measure, Americans are among the most successful and most privileged people in the world. However, the changing global economic landscape necessitates a re-evaluation of strategies and policies to ensure continued prosperity.
Sources:
- Federal Reserve Economic Data (FRED)
- International Monetary Fund (IMF)
- National Bureau of Statistics of China
- Reserve Bank of India
- World Bank
- In light of the declining dominance of the West and the rise of emerging economies, individuals in the US may need to reassess their personal-finance strategies to adapt to the shifting global business landscape.
- The intensifying economic competition between major powers like the US and China has significant implications for investing in general-news, as strategic shifts in finance and politics can have far-reaching effects on various industries worldwide.
- As the US and Europe relinquish their hold on the global economy, it is crucial for businesses to closely monitor political developments and adjust their investment strategies accordingly, taking into account emerging markets' growing influence on the international economy.
