Will we recover, unbridle ourselves of debt, innovate, pay for our national security? Or, is China fated to become number one, leaving us to live in a Chinese world?

AEI's Henry Wendt Scholar Nicholas Eberstadt wins the prestigious Bradley Prize

The idea that China is practicing a new form of capitalism, and may even be “doing capitalism better than America,” is reaching a fever pitch in policy and business circles.

In his latest Economic Outlook, AEI economist John Makin warns that while China's economy -- the world's second-largest -- shows every sign of continuing to overheat, the Chinese authorities have been hesitant to move aggressively enough to contain accelerating inflation.

Tokyo is expected to announce Friday that it will buy America's F-35 Joint Strike Fighter (JSF), the clearest statement yet that Japan will not be left behind in Asia's arms race.

In the face of this Chinese buildup, Washington needs to do more to maintain its air-power superiority. Its aging F-15s and F-16s increasingly will be unable to match more modern Chinese counterparts, and even the far superior skills of U.S. pilots can't make up for outdated aircraft.

China's new leadership is threatening to stay content with slower economic growth, and the country's manufacturing, housing, and export sectors are experiencing problems. Nonetheless, China has an opportunity to influence economic growth in 2012 through stimulus measures to its own economy.

Chinese telecom-equipment maker Huawei has become a global corporate giant, yet security concerns from US officials have kept it from gaining a foothold in America, intensifying US-China tensions. In a time of great economic need, US desire for foreign direct investment from China is clashing with fears over cyber attacks from organizations suspected to be under Beijing’s influence.