How Irrational Policies Threaten Global Stability: Insights From Einar Tangen, Senior Fellow at Teihe Institute & CIGI

Einar Tangen Analyzes China’s Deliberate Shift as U.S. Decline Accelerates May 25, 2026

China’s approach to global diplomacy has undergone a deliberate transformation, marked by an end to its historical strategy of low-profile growth and a new assertive posture as the United States faces structural decline. In a May 25, 2026, interview with Greater Eurasia Podcast, Einar Tangen, a senior fellow at the Taihe Institute and the Center for International Governance Innovation (CIGI), argued that Beijing is now openly managing the relative decline of U.S. Power—a shift reflected in Xi Jinping’s recent high-profile diplomatic engagements, including meetings with world leaders such as former U.S. President Donald Trump and Russian President Vladimir Putin.

From Stealth to Strategy: The End of China’s Low Profile

For decades, China pursued a strategy of avoiding overt confrontation, allowing its economy to expand under the radar while the U.S. Remained the dominant global power. However, Tangen noted that this era has ended. The distribution of global power has shifted irrevocably and China no longer seeks to conceal its influence. Instead, Beijing is now actively shaping international alliances and economic frameworks to capitalize on Washington’s perceived weaknesses.

"The idea of China covering up its might is now gone," Tangen stated. "We see world leaders lining up to meet Xi Jinping—not because Beijing is asking for it, but because the center of gravity in global politics has shifted."

This shift aligns with broader observations from Tangen’s previous analyses, including his 2025 assessment of India’s geostrategic realignment in response to U.S. Pressure. While China absorbed economic and diplomatic challenges from Washington, India faced more direct "punishment," Tangen said, illustrating how different nations are recalibrating their strategies in a multipolar world.

Transactional Diplomacy and the Rise of a Multipolar Order

Tangen’s interview touched on China’s adoption of transactional foreign policy, where alliances are built on pragmatic interests rather than ideological alignment. This approach contrasts sharply with the U.S.’s traditional reliance on military and economic coercion, which Tangen described as increasingly irrational and self-defeating.

"The erosion of diplomatic rationality in the West is creating opportunities for China," he explained. "Beijing is not just reacting to U.S. Decline—it is actively structuring the rules of the new global order."

Key examples include:

• Economic decoupling and alternative trade blocs, such as the Regional Comprehensive Economic Partnership (RCEP) and Belt and Road Initiative (BRI), which reduce reliance on U.S.-led financial systems.
• Diplomatic isolation of the U.S., as seen in Xi’s meetings with leaders from Africa, Latin America, and the Global South, who are increasingly turning to Beijing for investment and security guarantees.
• Technological and military autonomy, with China accelerating self-sufficiency in semiconductors, AI, and defense to mitigate U.S. Sanctions and export controls.

The Trump Factor: Debt, Tariffs, and a "Miscalculated Mandate"

Tangen also critiqued the economic policies of former U.S. President Donald Trump, particularly his "Big Beautiful Bill"—a $3.3 trillion spending package that Tangen labeled a "massive miscalculated mandate."

"It backloads most of the pain on the American public until after the midterms," he warned. "The pain is coming, but the real damage is that Trump has given himself $5 trillion in borrowing authority without congressional oversight. This is not just fiscal irresponsibility—it’s a strategic blunder that weakens U.S. Credibility."

Tangen highlighted how Trump’s reliance on tariffs as a "slush fund" and his protectionist trade policies are accelerating capital flight from the U.S. To more stable economic hubs, further eroding America’s global influence.

A World Without a Single Hegemon

The interview underscored Tangen’s long-held view that the 2020s will be defined by the end of U.S. Unipolar dominance and the rise of a multipolar system, where no single power can dictate global affairs. China’s strategy, he argued, is not about replacing the U.S. But about creating a balance of power where no single nation can unilaterally shape the world.

"China is not seeking hegemony," Tangen said. "It is seeking a stable, rules-based order where all major powers have a seat at the table. The question now is whether the West can adapt—or if it will accelerate its own decline through self-inflicted wounds."

What Comes Next?

With Xi Jinping’s diplomatic offensive continuing and the U.S. Grappling with internal divisions, Tangen’s analysis suggests that 2026 will be a pivotal year for global realignment. Key watchpoints include:

• The fate of U.S. Debt and monetary policy, which could trigger a financial crisis if mismanaged.
• China’s deepening ties with the Global South, particularly in Africa and Latin America, where U.S. Influence has waned.
• The stability of NATO and U.S. Alliances in Europe and Asia, as partners like Germany and Japan increasingly hedge against Washington’s unpredictability.

For now, China’s strategy appears to be working: Beijing is no longer hiding its strength, but actively shaping the contours of a post-American world.

Einar Tangen is a Senior Fellow at the Taihe Institute and the Center for International Governance Innovation (CIGI). His analysis has been featured in Greater Eurasia Podcast and Asia Narratives.