Core Insights - The rise of major powers is closely linked to the shift of global financial centers, influencing the trajectory of global dynamics over the past 500 years [1][4]. Historical Context - The Netherlands emerged as a global power from the 17th century, developing its transportation industry and establishing the first joint-stock company, with Amsterdam becoming the world's financial center [1][3]. - Following the Netherlands, Britain established its own East India Company and took control of New Amsterdam, renaming it New York, marking the beginning of British global dominance from 1714 to 1944 [3][4]. Transition of Financial Power - The Bretton Woods Conference marked a significant transition where the British pound was replaced by the US dollar as the international reserve currency, with the dollar pegged to gold at $35 per ounce [4][5]. - The US dollar's detachment from gold in 1971 and its subsequent linkage to oil solidified the US's financial dominance, which is projected to last until 2025, totaling 81 years [5][6]. Current Economic Landscape - The US GDP stands at $29.2 trillion, while China's GDP is approximately $18.4 trillion, indicating that China's economy is about 66% the size of the US economy [5][6]. - The total market capitalization of US securities markets is around $64 trillion, compared to China's approximately $12 trillion, highlighting a significant gap in financial market size [6]. Implications for China - China's rise is driven by a dual engine of manufacturing and finance, emphasizing the need for coordinated development in both sectors to achieve its goals [6]. - Historical patterns suggest that the success of rising powers is often tied to their financial systems, indicating that China must prioritize financial development to secure its position as a global power [6].