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America’s war-based economy still strengthens its rivals — and Trump is accelerating this

For more than two decades, experience has shown a clear pattern: whenever the United States rushes into wars, it does not weaken its enemies as it expects. Instead, it often opens wide doors for them to grow, expand, and build influence. The question is no longer whether rival powers benefit from Washington’s constant wars. 

The real question is: how much do these wars speed up America’s rivals economically and politically?

Today, with Donald Trump returning to the center of global influence and using escalating rhetoric and threats — commercial, military, and geopolitical — Beijing increasingly views “Trump’s wars” as a rare strategic opportunity, not an existential threat.

Wars drain Washington and disrupt its priorities

Any major war or military confrontation does not only consume money. It also consumes political attention, strategic capacity, and international credibility. The wars in Afghanistan and Iraq proved that getting trapped in “long wars” creates a costly swamp that is hard to escape. It keeps the United States focused on daily security and military details instead of the bigger challenge: competing with China economically, technologically, and militarily.

Beijing understands this well. When the U.S. spends its resources on military campaigns and naval deployments, it is not building new factories, not investing at the same speed in education, research, and technology, and not focusing on the long-term industrial race. That is exactly what China wants: more time and more space to speed up production, deepen innovation, and expand its influence.

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Trump’s wars weaken allies before they weaken rivals

America’s direct rivals are not the only ones affected by war. Europe and NATO often pay a double price: rising energy costs whenever supply routes are threatened, disruption of shipping and maritime insurance, internal inflation, and growing political polarization driven by living-cost pressures and migration.

Here China sees the opportunity. The more Washington gets pulled into a new confrontation, the more Europe becomes anxious, divided, and less able to sustain a “long economic war” against China.

Beijing does not need to break the Western alliance by force; it is enough to let it weaken gradually under the weight of repeated crises.

This pressure is also felt by America’s Gulf allies, especially as the U.S. confrontation with Iran intensifies.

Wars create a “Fear Economy” and China presents itself as the economic alternative

Wars do not only create deaths and destruction. They also create a global “Fear Economy” that leads to markets panic, investors hesitate, and companies search for stability in supply chains. In economics, stability is as valuable as power.

China tries to present itself at this moment as the “more responsible economic actor”. This means a state focused on trade, infrastructure, and investment that offers itself as an alternative partner in Asia, Africa, and Latin America.

The more the U.S. moves toward war, the easier it becomes for China to sell a simple message:
We represent development; they represent chaos.

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War accelerates the breakdown of U.S. dominance in the international order

U.S. dominance after World War II was not built by military power alone. It was built through a full system: international organizations (such as the World Bank and the World Trade Organization), alliances, economic leadership, and global confidence that the “system”, even if biased, was at least predictable.

But when U.S. policy becomes driven by rushed decisions, constant escalation, and ongoing threats, international confidence weakens and the search for alternatives speeds up. China sees “Trump’s wars” not only as military conflict, but as a force that breaks down the structure that kept the U.S. as the leading power.

Simply saying: every war makes it harder for Washington to lead the world by consent, so it tries to lead by coercion. And coercion does not create lasting stability — it creates economic shocks and repeated crises.

Global wars reduce pressure on China in its sensitive files

When crises explode in the Middle East, or tensions rise with Iran or in the Red Sea, international political and media attention shifts to those arenas. This gives China valuable time to work quietly on major strategic priorities: Taiwan, the South China Sea, the technology race, and control over rare minerals and global supply chains.

China does not want a direct confrontation now. It wants to accumulate power until it can negotiate from a stronger position. The longer Washington stays trapped in wars, the closer Beijing gets to that moment.

When war becomes an “economic model”, it becomes a gift to competitors

Modern U.S. history shows how often America links economic strength to military power: tax tariffs, huge arms budgets, overseas bases, and wars justified with security and moral language. The paradox is that this model, even if it benefits the domestic weapons industry, produces long-term negative results. America’s rivals gain time, build their economies, advance in technology, and rise in influence.

That is why Beijing sees “Trump’s wars” as an opportunity. When war becomes a political and economic habit, it does not exhaust the enemy only — it exhausts the one waging it.

And if economics is the foundation of power in today’s world, America’s continued strategy of “wearing itself out through wars” leaves one final question open:

Is Washington still fighting to win — or is it fighting in a way that helps its rivals rise?

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The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.

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