FX.co ★ Competition intensifies between US and China

Back in 2000, China had very high GDP, in which its digits have doubled for nearly a decade. As a result, it became the largest consumer of commodities in the world, driving the prices of copper, iron ore, coal, oil and soybeans up.

Then in 2001, it became part of the World Trade Organization, where member states, especially the United States, assumed that it would become more "Western" and respect the status quo. But instead, what happened is that China took over much, if not all, of what the US used to control.

For example, in the early 21st century, the United States was the dominant trading partner of every Asian country. Now, this position belongs to China.

Obviously, the Chinese government is doing their best to gain power because they want to improve the lives of its citizens, as they see their country as a lost empire to be reclaimed, respected, loved and feared. They want China to take its rightful place in the world, that is, to become the most powerful, enviable and exemplary nation on earth.

That being said, many analysts project that China's economy may soon become the largest in the world, when measured at market exchange rates (MERs). This refers to purchasing power parity, which is an adjustment designed to account for levels of development.

China has already surpassed the United States in global merchandise trade. Last year, it became the main trading partner of the European Union, a region where US trade dominated just a decade ago.

It also increased its military power and now spends more on its military than any other country in the world except the United States. Of course, the US still has a clear advantage, but this may change soon if China continues to undergo very fast economic growth.

"Economic development increases the state's ability to produce high-quality military equipment and skilled military personnel," Michael Beckley said.