Global Power Plays

Wu Xinbo: Why US global dominance is eroding and who fills the vacuum

Fudan scholar Wu Xinbo argues that shifts in U.S. policy and global strategic balance are reducing Washington’s ability to set the rules; the change elevates rivals, stresses alliances, and raises concrete risks for the public.

Why this matters: Wu Xinbo is the dean of the Institute of International Studies at Fudan University in Shanghai and a leading Chinese researcher on the US.

What happened

Wu Xinbo, dean of Fudan University’s Institute of International Studies, framed current geopolitics as a measurable decline in U.S. unipolar leverage. In a recent interview he traced that shift to a mix of recent U.S. foreign-policy choices, sustained global commitments that strain resources, and rival states seizing diplomatic and economic openings. The reporting summarizes his view that American capacity to set global norms and outcomes is weakening in ways that are already affecting alliances and regional calculations.

Wu’s argument is not a prediction divorced from policy mechanics; he points to observable behaviors — tougher Chinese pressure on regional partners, more assertive diplomacy from non-Western capitals, and U.S. administrations reallocating focus — as signs that the balance is changing rather than a single dramatic reversal.

Who gains leverage

Two actors gain the most from this shift. First, revisionist and regional powers (notably China) gain bargaining space to reshape economic and security arrangements. Second, foreign-policy factions within the U.S. that favor retrenchment or selective engagement gain leverage over global commitments because the consequences of pullback are now politically and materially visible.

Both types of actors convert U.S. incoherence into leverage: states through concrete economic and security offers to third countries, and domestic U.S. actors by arguing that limited engagement is now more defensible.

What mechanism is operating

The dominant mechanism is leverage reallocation through resource strain and narrative control. When a great power shows signs of overstretch or policy inconsistency, rivals exploit gaps with targeted economic measures, alliance pressure, and information framing. That process changes bargaining costs: partners pay more to stay aligned, adversaries face lower deterrence costs, and institutional rulemaking bodies find it harder to enforce norms.

This is a systemic feedback loop: visible withdrawals or mixed signals encourage competitors to invest where they see openings, which in turn further degrades the withdrawing power’s influence.

Why it matters

The shift alters everyday public stakes. Reduced U.S. ability to underwrite security guarantees raises the chance that regional disputes escalate, insurance and supply-chain costs rise for firms and consumers, and multilateral institutions lose enforcement capacity on trade, climate, and arms control. That translates into higher economic volatility, more localized arms races, and fewer platforms to resolve cross-border problems.

Who benefits politically from this recalibration matters too: domestic actors advocating isolation can gain policy wins that reconfigure long-term commitments, while foreign rivals consolidate economic footholds that may be hard to reverse.

What to watch next

Watch three concrete indicators: U.S. alliance behavior (defense spending, joint exercises, treaty rhetoric), competitor economic statecraft (new trade or investment deals targeting U.S. partners), and multilateral institutional outcomes (voting alignment, enforcement actions). Sharp moves on any of these will show whether Wu’s diagnosis is fleeting commentary or a durable power shift.

Also monitor domestic decision points — congressional funding votes, administration strategy reviews, and high-profile summit commitments — because they are the proximate levers that can either arrest or accelerate the reallocation of global leverage.

LensGlobal Power Plays
TypeReporting
PublishedJuly 2, 2026
Read time3 min read
SourceSouth China Morning Post – China
Source attribution

This is NOLIGARCHY.US analysis of reporting first published by South China Morning Post – China. The source reporting remains the factual starting point; this page applies the site's eight-lens civic analysis layer.

Read the original at South China Morning Post – China
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