Economy: China versus America

Two world powers, with two distinctly different political philosophies, proceed in world affairs on strikingly different courses. China has chosen to flex its economic muscle while America's strategy is based on using military might in pursuing its agenda.
In economic terms, the prices of Chinese exports will probably fall, as overextended businesses compete to justify their capital investments and recoup their losses. American businesses will find it harder to compete with Chinese companies, and there will be deflationary pressures in both countries.
And even if the Chinese are selling more at lower prices, they may be taking in less money overall, so they may have less to lend to the United States government. China's growth rate, even in these dire economic times is robust, about 9% at the end of 2008. The US at that time was 1.1% but currently is running a negative 2.3%. While China is the third largest economy in the world.
Assuming that China and the US continue to follow their current strategies and directions, and there is no reason to think that they won't, China seems to be heading into the position of dominance. Right now China is making domestic and foreign policy moves that are based on growth and solidifying its economic foundation.
On the other hand, the US is pursuing strategies that have no clear formulas designed to spur growth, but, rather, strategies that are severely eroding our economic base. China has no great unemployment problems; the US has lost millions of jobs. China manufactures and exports products all over the world, while the US is outsourcing more and more manufacturing jobs to other nations.
America now faces dire economic issues. Consider the current massive rate of borrowing from other nations, together with a $1 trillion annual defence budget, and a GDP plunging due to our continuing economic crisis. Could it be that at some point in the future, the US may be forced to default on its debts?
This is not a doomsday prediction or scare tactic, but it could very well happen if the US continues on its present course; on-going wars, outsourcing more manufacturing and growing deficits. China currently posses an economic challenge to the US, for these reasons they are engaged in a number of trade disputes. China's development model shows that it is possible for any nation to develop with some direction, which large portions of any nation take as their view towards the world.