Part 6/12:
A core concern lies in the relative military power and economic strength of these superpowers. Currently, the U.S. spends approximately $800 billion annually on its military, vastly outspending China’s $200 billion. Nonetheless, China's rapid economic growth—if sustained—could alter this balance, especially as it continues to grow its GDP and military capabilities.
Dalio stresses that military power correlates strongly with GDP, and as China’s economy potentially surpasses that of the U.S., the threat of military conflict could escalate. Moreover, China’s internal challenges—historically characterized as non-stop civil conflicts—may influence its external actions.