US Is Declining: 4 Reasons Xi Jinping Is ‘100% Correct’ Like Donald Trump Said

Last Updated:May 15, 2026, 12:13 IST

Four ways in which the US is a declining nation, News18 explains

During his high-stakes Beijing summit with Chinese President Xi Jinping, Donald Trump stated that Xi was “100 per cent correct" in characterising the United States as a “declining nation", but reinterpreted the remark to target the policies of the Joe Biden administration. Writing on Truth Social, Trump clarified the assessment described the “tremendous damage" suffered before his second term began.

Four ways in which the US is a declining nation, News18 explains.

1. Geopolitical power and strategic overextension

During the summit, Xi cautioned both superpowers against falling into a historic structural trap where an established hegemon (the US) goes to war to suppress a rising power (China).

Trump argued that the US became a weaker global force because the previous administration mismanaged global trade relations and border security.

The Chinese leadership views the US as structurally overextended, while Trump frames the geopolitical decline as a temporary weakness that he is actively reversing through localized military and trade dominance.

Global South nations increasingly favour non-Western blocs like BRICS over traditional US-led security frameworks. Multifront military funding has strained domestic production capabilities and limited flexible response options. Unresolved regional conflicts signal to rival powers that US military enforcement limits are highly strained, say experts.

2. Reputation as a reliable partner

Long-time partners in Europe and Asia increasingly view the US as erratic and transactional. Intense polarisation and swift transitions between administrations have caused abrupt tariff implementations and rapid withdrawals from international agreements, severely harming predictable diplomacy.

Critics note that unilateral tariffs alienate historical allies, driving them to find more stable economic alternatives and leaving the US isolated. Foreign aid packages, too, face severe legislative delays, casting doubt on immediate US commitments during crises.

3. Economic power and debt

Structural deficits and massive government spending have pushed federal debt to record highs, clouding the long-term outlook for financial stability. The continuous global dependency on the US dollar is showing signs of instability as aggressive sanctions and domestic tariff policy decisions drive central banks to de-risk. Central banks worldwide are actively diversifying foreign reserves into gold and local currencies to mitigate US dollar dependency. Domestic infrastructure underinvestment has reduced long-term manufacturing competitiveness against rapidly modernizing economic rivals.

Trump claims that the decline has halted under his current 16-month tenure, pointing to record-high stock markets, booming 401(k)s, and trillions of dollars in renewed foreign investment.

4. Erosion of Democracy

Deeper internal political fractures have severely weakened public trust in core government institutions, hampering the legislative process.

Trump directly linked democratic and cultural decline to what he called “country-destroying" Diversity, Equity, and Inclusion (DEI) initiatives, transgender policies, and rising inner-city crime.

International watchdogs and public polls show that global favorability toward the US has dropped dramatically, eroding its long-held status as a “beacon of democracy".

KEY FAQs

Why do some leaders say the U.S. is declining?

Critics point to rising national debt, political polarization, manufacturing losses, and global competition from countries like China as signs that U.S. influence is being challenged.

Why did Donald Trump say Xi Jinping was “100% correct"?

Trump has argued that China benefited from U.S. trade policies and industrial outsourcing for decades, agreeing with Xi’s view that America weakened its own economic position through globalization and trade imbalances.

Does U.S. decline mean China will replace it completely?

Not necessarily. The U.S. still leads in areas like technology, finance, military power, and higher education, while China faces its own challenges including demographics, debt, and slowing growth.

With agency inputs

News explainers US Is Declining: 4 Reasons Xi Jinping Is ‘100% Correct’ Like Donald Trump Said

Read More