THE RISE of China as a great power in all dimensions—military, economic, and diplomatic—has ended the unipolar era that followed the Cold War—if such an era ever truly existed. Instead of producing a bipolar world order, China’s rise is creating a multipolar world order, by enabling second-tier powers like Russia and Turkey and others to maneuver between Washington and Beijing.

The return of a multipolar world of great power rivalries is forcing American strategists to rethink the relationship between military, security, and diplomatic influence, on the one hand, and industry and trade, on the other. During the Cold War, these were habitually treated as separate subjects. The Soviet Union and, to a lesser degree, Communist China were military and ideological rivals, but not commercial adversaries. Japan and West Germany were commercial adversaries, but not military and ideological rivals. In contemporary China, however, the…

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