The Future of China's Economy and US-China Relations

China's economic slowdown and structural problems could increase the risk of China taking aggressive actions. As the Chinese economy slows, the Chinese Communist Party may rely more on nationalism for legitimacy, which could heighten the risk of a confrontation with Taiwan. The US also faces constraints on the economic front, with a growing fiscal deficit that limits its ability to invest in military modernization. The interdependence between the US and China's economies makes a direct war unlikely, but economic tensions and competition continue to pose challenges.