Like the study of China itself, theorists of power transition have lately experienced a resurgence of interest in their arguments. As China has emerged as the world’s second-largest economy, with the second-largest military budget, and has become more assertive internationally under a seemingly more powerful president, the picture painted is one of growing morbidity: war between China, the putative rising dissatisfied power, and the United States, the declining hegemon, has allegedly become highly probable. This chapter critiques these arguments and highlights the restraints on conflict that generally are given insufficient attention in power transition approaches that deal with the Sino-American relationship. The chapter argues that historical awareness among leaders, state agency, and complex economic trends that are central to the understanding of this hybrid world order, together with the domestic preoccupations of these two central protagonists, are factors that work to inhibit the outbreak of war.
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