The most important thing though, is that most of our modeling suggests the United States would have it somewhat worse than the PRC in this regard. Thus, I would consider the economic side of things to somewhat favor the PRC if anything. Further, I don't consider there to be a likely reality in which the PRC initiates hostilities while the US has such a knife to their throats in being able to cause general economic "collapse" (which I don't view as very likely. serious recession? yes, that's unavoidable; but not collapse).
Both. Back in 2013 the PRC would certainly have come off much worse, but today that's somewhat different. The PRC's domestic market is the largest in the world these days, and given the amount of production that occurs domestically, it is much better able to continue relatively normal economic activity than the US is. Both sides would suffer. A lot. Most of our models put GDP contraction in the 25-35% range conservatively, which is *huge* when dealing with the kind of economic scales we are discussing. However, this shrinkage would manifest pretty differently in the PRC and the US's case, due to the economic profiles of both nations - with the US's "hit" being to more critical sectors (i.e. manufacturing, resource imports, etc.) while the PRC's hit would be taken more on the export side of things, but would not necessarily end their ability to produce those goods.
Oh certainly. I think that frankly, in 15 years time, a lot of the picture is going to be completely different. I suppose I should specify, I am only discussion possibilities out to ~2030 or so (and even that is a bit of a stretched timeline). It's near impossible to accurately quantify both sides (especially in the granular fashion needed to meaningfully conduct analysis) out past even the late 2020s, so it's something I frankly don't even attempt. Once the US has firmly declined from "sole superpower" status, I think the likelihood of US intervention drops dramatically.
I'm just circling back to some of the statements on the economic effects of a US-China war.
1. A 25%-35% decline in GDP isn't just a serious recession. Both China and the US would see something worse than the Great Depression of the 1930s which was only a 26% decline in GDP.
2. If the US suffers a greater GDP decline than China on both a relative and absolute basis, that implies the US decline is closer to 35% whilst the Chinese decline is closer to 25%. This is based on the latest GDP figures in PPP terms: China = $30 Trillion and US = $25 Trillion. So whilst both China and the US would experience a depression, the US depression would be significantly worse. Is this correct?
And if we look to say 5 years into the future when China is significantly bigger, the figures should favour China even more.