China vs. USA: The Battle for the New World Order
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The paper explores the economic dynamics between two of the world's largest economies, China and the USA, which have distinct economic models that shape the global economic landscape. China has evolved into the manufacturing hub of the world, driving export-led growth, while the USA leads in financial innovation, with a large financial sector that facilitates global capital flows. The study discusses how these two forces interact, focusing on aspects like trade imbalance, capital flows, and policy tools. The paper presents a new economic model that evaluates the effects of manufacturing output, financial innovation, and tariffs on trade balances. Additionally, it considers the impact of immigration on the manufacturing and financial capacities of the USA. The competition between China and the USA in various economic areas is explored, offering new insights through econometric modeling, contributing to the understanding of the evolving global economic order.
