Superficially in the recent period the U.S. has attempted to display two apparently contradictory sides of its policy to China. ... In reality, this “soft cop/hard cop” U.S. approach is not contradictory. It was two sides of the same coin. In particular it is rooted in the real situation, as opposed to the myths regarding, the U.S. economy and the implications of this for U.S. foreign policy and domestic policy. These are rooted in the inability/refusal of the U.S. to abandon its aggressive military and foreign policies and a similar refusal/inability to carry out rational domestic transformations even of a reformist kind. By these the U.S. dooms itself to defeat by China in peaceful economic competition—with consequences which are examined at the end of what follows.