Overextension and Globalization: The Dynamics of Hegemonic Decline

The global order is undergoing a crisis of hegemonic decline that has two dimensions that are distinct but deeply related. One is a crisis of the American empire that could best be characterized as one of 'overextension'. This is principally a military and political crisis, which has mainly unfolded in the Middle East. The other ongoing crisis is that of US economic decline brought about by the dynamics of global capitalism, the main aspects of which are globalization, the rapid rise of China, deindustrialization, and financialization of the US economy. These trends have had domestic political and ideological ramifications for US hegemony. Considering the question of hegemonic transition in light of these developments, the article comes to the conclusion that what might be emerging could be not a hegemonic transition, but a condition of hegemonic stalemate between China and the United States because the United States has been countering China's economic dynamism and global influence with its absolute military superiority.