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  • Context
    • USA as Hegemon
    • China, the Incumbent
  • Scenarios
    • Peaceful Transition
    • Engineered Crisis
    • The Great Unwinding
  • Investment Theses
    • China Tech Sovereignty
    • The New Commodity Leverage
    • Defense and Tech Autonomy
    • Global Energy Transition
    • Gold, the Ultimate Hedge
    • The Green Yuan
  • Newsletter
  • About
    • About Capital in Transition
    • Newsletter
    • Scenario Modelling

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Capital in Transition
  • Context
    • USA as Hegemon
    • China, the Incumbent
  • Scenarios
    • Peaceful Transition
    • Engineered Crisis
    • The Great Unwinding
  • Investment Theses
    • China Tech Sovereignty
    • The New Commodity Leverage
    • Defense and Tech Autonomy
    • Global Energy Transition
    • Gold, the Ultimate Hedge
    • The Green Yuan
  • Newsletter
  • About
    • About Capital in Transition
    • Newsletter
    • Scenario Modelling
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  • Context: Setting the Stage for Transition

Context: Setting the Stage for Transition

Global power transition: Chinese President Xi Jinping delivering a video address to the UN General Assembly in 2025, highlighting China’s climate pledge.

The story of global power transition does not begin in the future. To understand where we are heading, we must first look back. The decline of one hegemon and the rise of another is not a sudden shift but a long process, written over decades of ambition, strategy, and structural change.

This section offers two background primers. They explain how the United States came to dominate the post-war order and how China emerged as the only serious challenger to that order. Together, they provide the context for the scenarios we develop about what might come next.

The American Century

USA as Global Hegemon traces the path from post-1945 ascendancy to the high-water mark of U.S. influence. It shows how military might, economic leadership, and the dollar’s unique role created an era of unrivalled dominance — and how those foundations are now eroding.

China’s Emergence

China as Global Challenger follows China’s extraordinary transformation from poverty to industrial power. It highlights how state planning, technology adoption, and global integration turned China into the only nation capable of contesting U.S. primacy — and why its trajectory still shapes the decades ahead.

These essays are not forecasts. They are the prologue to our scenarios. The past explains the present, and the present sets the boundaries of the possible future. By grounding our analysis in history, we can better explore the uncertain decade to come.

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