Geo-economics and the Reshaping of Power: A Comparative Study of the United States and China

Abstract

This study analyzes the role of geoeconomic policies in reshaping patterns of power within the contemporary international system, amid the relative decline of the ability of traditional military power to explain international influence. It is based on the premise that the expanding use of economic instruments—such as finance, trade, investment, and technology—has contributed to redefining the ways in which power is produced, exercised, and redistributed among major powers.

The study addresses a central research question: to what extent has the deployment of geoeconomic instruments contributed to reshaping power relations between the United States and China within the international system? Methodologically, the study adopts a comparative analytical approach supported by structural-descriptive analysis to compare the geoeconomic strategies of the United States and China as two distinct models. The comparison is conducted through an analytical framework based on four key criteria: the nature of the geoeconomic instrument, the strategic objective behind its use, its effectiveness in reshaping relative power, and the political and economic costs associated with its deployment.

The findings indicate that geoeconomics does not constitute an independent or absolute form of power; rather, it functions as a contingent and flexible mechanism whose effectiveness is shaped by broader political, military, and structural contexts. The results further reveal that the United States relies on coercive geoeconomic instruments that are effective in the short to medium term, whereas China relies on a long-term cumulative geoeconomic strategy centered on investment, infrastructure, and supply chains, gradually enhancing its power while incurring lower direct political costs and producing slower effects.