Commentary
China is a stunted financial power, leaving the US free to rule global markets, says Ruchir Sharma for the Financial Times.
A bank employee counts China’s yuan notes next to US dollar notes in Bangkok, Thailand, Jan 26, 2023. (Reuters/Athit Perawongmetha/ File Photo)
20 May 2026 05:59AM
NEW YORK: The Beijing summit last week reignited talk of the “imperial twilight” in which America is supposedly ceding its superpower crown to China. But in at least one field – financial competition – the opposite is true. China is stagnating, allowing America to dominate by default.Never has the gap in financial power between the world’s two largest economies been this wide. Follow the list of empires from the United States down through Britain, France, the Netherlands and back to the 15th century. Usually, the emerging challenger built broad strengths from military to trade. China is typical in every way except finance. Unlike rival currencies past and present, the yuan is far from fully convertible and has gained little traction as an international currency.
