Core Viewpoint - The article discusses the disparity between the perception of economic strength in China and the reality of its position relative to the United States, emphasizing the importance of understanding the underlying distribution rules that govern global economics [4][6][7]. Group 1: Economic Performance - In 2021, China's industrial output accounted for 30% of the global total, and its GDP reached 77% of that of the United States. However, by 2024, while industrial output increased to 35% of the global total, the GDP ratio relative to the U.S. fell to 65%, a decline of 12% [4][5]. - The article highlights that despite improvements in industrial production capabilities, China's economic growth is hindered by the existing distribution rules set by the U.S., which maintains its status as the largest consumer nation [6][7]. Group 2: Global Economic Rules - The article categorizes countries into resource countries, industrial countries, and consumer countries, with the U.S. being the largest consumer country that dictates the rules of the game [6]. - The dominance of the U.S. is attributed to its control over the distribution of global wealth, with the dollar serving as the primary currency for international transactions, reinforcing the concept of dollar hegemony [6][7]. Group 3: Military and Economic Strategy - The article suggests that to change the existing economic rules, China must enhance its military capabilities, particularly in naval power, to gain leverage in international negotiations [8][10]. - It is noted that the U.S. is currently adjusting its national security strategy to stabilize relations with China while addressing its own economic issues, indicating a shift in the dynamics of their relationship [14][18]. Group 4: Future Outlook - The article expresses optimism about China's future, suggesting that while it may not immediately become the new "game master," the current challenges faced by the U.S. could create opportunities for China [13][22]. - It emphasizes the importance of being prepared for potential economic shifts and the need for diversified asset allocation to navigate the changing landscape [35][44]. Group 5: Policy and Market Dynamics - The article stresses the significance of monitoring policy changes and macroeconomic events, as these will influence market conditions and investment strategies [45][52]. - It highlights the volatility in capital markets due to global liquidity changes, particularly in response to actions taken by major central banks like the Federal Reserve and the Bank of Japan [47][48].