Two world powers, with two distinctly different political philosophies, are currently on show with strikingly different approaches to the world affairs. China is flexing its burgeoning economic muscle while America's strategy is based on using its military might. In economic terms, the prices of Chinese exports would probably fall as its overextended businesses compete to justify their capital investments and recoup the losses made in the recent world economic meltdown. American businesses would then find it harder to compete with Chinese companies, and some deflationary pressures might start showing in the two economies. But even if the Chinese are able to sell more at lower prices, they may be taking in less money over all. That means they would probably have less to lend to the United States government in future. China's growth rate, even in these dire economic times is a robust 9% at the end of 2008. The US economy, though, is in a tailspin. Assuming that China and US continue to follow their current strategies and directions, and there is no reason to think that they won't, China seems to be heading into position of dominance. Right now China is making domestic and foreign policy moves that are squarely based on its expectations of high future growth upon solid economic foundations. On the other hand, the US is pursuing strategies that have no clear formula to spur growth but rather strategies that are severely eroding its economic base. China has no great unemployment problems; the US has lost millions of jobs. China manufactures and exports products all over the world while the U.S. is outsourcing more and more manufacturing jobs to other nations. America now faces dire economic issues. Consider the current massive rate of borrowing from other nations and one wonders whether at some point in future, the US may actually be forced to default on its debts? -RAFIA ZUBAIR, Karachi, December 11.