China May Lead Economy by 2036, Yet Taiwan Invasion Risk Persists

In a decade, China could become the world's largest economy while still contemplating military action against Taiwan. This paradox of economic ascendance paired with military disadvantage may create the most dangerous scenario yet.

A new survey of hundreds of geopolitical forecasters reveals a world where traditional measures of power no longer align—and where that misalignment could trigger the very conflicts it seems designed to prevent.

The Great Divergence

The Atlantic Council's latest survey paints a picture of bifurcated global leadership. 58% of experts believe China will claim the top economic spot by 2036, with only 33% expecting the US to maintain its economic dominance.

Yet when it comes to military might, the numbers flip dramatically. A commanding 73% of forecasters expect American military supremacy to endure, while just 24% see China achieving military parity.

The middle ground tells an equally compelling story. In technology and diplomatic influence, the two powers are essentially tied—47% to 44% for tech leadership, and 38% to 33% for diplomatic sway. These domains appear destined to become battlegrounds of "peer competition."

When Economic Power Meets Military Reality

This asymmetry creates what strategists call the "power transition trap." Historically, rising economic powers that feel militarily constrained have often made desperate moves to assert dominance before their window closes.

"I think we underestimate China's strengths and ambitions at our peril," warned Melanie Hart, senior director of the Atlantic Council's Global China Hub. "Across the board we are still ahead, but we have almost zero margin for error."

The Taiwan question becomes particularly volatile in this context. If China achieves economic supremacy but remains militarily inferior, Beijing might calculate that time is running out to resolve what it sees as unfinished business. Economic confidence combined with military urgency could prove a dangerous cocktail.

The Investor's Dilemma

For global markets, this forecast presents a fundamental challenge. How do you invest in a world where the largest economy might also be the most militarily constrained major power? Taiwan's semiconductor industry, which produces over 60% of the world's chips, sits at the epicenter of this tension.

The survey results suggest that businesses will need to navigate an increasingly complex landscape where economic integration with China deepens even as military tensions rise. Supply chains built around Chinese economic growth could face sudden disruption if diplomatic relations deteriorate.

Beyond Binary Thinking

Perhaps most intriguingly, the survey reveals that experts don't see this as a simple US-China binary. The near-ties in technology and diplomacy suggest a multipolar world emerging—one where different types of power are distributed among different actors.

This complexity might actually provide stability. If no single nation dominates across all dimensions of power, it could create multiple pressure release valves and force more collaborative approaches to global challenges.