As China’s military closes gap on US, economic security becomes the new frontier

As next-generation tanks and fighter jets roll past the Gate of Heavenly Peace in Beijing to mark the 80th anniversary of the end of World War II, many in China will be swept up in a sense of national pride.

The Chinese leadership has set a target for the People’s Liberation Army (PLA) to emulate the American military – often described as the greatest fighting force in history – by 2049.

The futuristic hardware on show by the PLA will prompt optimism at home that China is on track to meet that goal. Indeed, the dazzling display is a testament to the stunning progress the military has made over the past decade.

The days of a handful of American electronic warfare aircraft being capable of paralysing half of China’s air defence system have gone. Yet, Washington has found another Achilles’ heel to target on its superpower contender.

While the PLA has been closing the gap on its American counterpart, Washington has perfected the art of turning its “exorbitant privilege” in the global financial system into weapons of mass economic destruction.

Combining its commanding lead in technology with its position as the world’s largest consumer market, the US is creating powerful choke points over its potential rivals and adversaries.

The strategy of using economic weapons to weaken your enemy is as ancient as war itself, but no power in history has enjoyed the kind of leverage that Washington wields over others.