Yes China does have a lot of potential to grow and will do so in the next few decades. The technology is there, the cheap labor is there...it just needs to catch up. Actually China did have a chance to expand its influence in the 1400's but chose to isolate itself as a matter of policy. In the next few decades it will definitely exert its power on neighboring countries and might even attempt to project its power on a global scale. I don't think the U.S. is somehow falling behind other countries. The U.S. is a developed economy at the forefront of innovation. As a developed country it can only hope to grow 2-4% per year whereas developing countries like China grow faster because they're simply catching up...the gap is bound to narrow.