The US is still formidable power in the world, but there are some big problems with them:
1. American average IQ is considerably lower than East Asian people, but US living standards are higher. This is not sustainable in the increasingly knowledge-based and connected world, not resource-based as before.
2. Education quality is considerably poorer than East Asian countries. Even in the poorest parts of China, pupils have average score of OECD countries, Shanghai pupils even toppled the PISA test this year. Although US still retain some world top-notch universities, but I think this is the momentum issue.
3. The arrogant and complacent attitude of US people appear to be very strong. That prevent them from learning from more advanced countries.
4. China story is not hyped at all. It is real. It is now the world’s biggest manufacturer, the biggest exporter, the biggest creditor; it is the biggest trading partner of the EU and Japan and the second biggest of the US (after Canada) and virtually all emerging countries, except some. It has a powerful modern military, it can shoot down american satellites, it has a top tier space program, it leads the world in Green Technology, it’s students dominate international academic competitions, it’s cities are the most modern (and China are now almost 50% urbanized. Even in some of their village, the quality of life is comparable to the West), it has the fastest supercomputer, the fastest trains, the biggest dams, the best infrastructure etc etc.
5. China invest more wisely in the future (green tech, high-tech railways, while US still think in the past.
6. The R&D investment of China is gaining fruits. 2 among top 5 companies with most international patent filling in 2010 are from China. The US has only 1. They are surely not copiers. They are creating new techs.