The challenge posed by China to US hegemony is grave because of the reduced power of the USA and economic and Military might of China as compared to the erstwhile USSR.
- US’ dominance has reduced – in terms of economic, technological and military power.
- Unlike the Soviet Union, China’s immediate objective is regional dominance, not global competition where it is at par with the US militarily. Ex – BRI, South China Sea etc.
- Unlike the Soviet Union, China is an economic powerhouse, and is integrated with the global economy giving it an edge.
- The US economy is closely integrated with the Chinese Economy which was not the case with the USSR.
- Technology – Unlike the USSR, China is keeping pace with the US because of its position as the global manufacturing and an ambitious private sector.
- US-USSR cold war about Ideological differences between Communism and Capitalism. The US – China cold war is about different models of Capitalism. State led vs Democratic Capitalism.
India faces a grave challenge in this new cold war with a dominant China along the northern borders.
Thus, India and the US need to collaborate more effectively to counter the Chinese ambitions specially in the Indo- Pacific region.