The liberal world order is in decline and the implications for global power dynamics will be immense. The origin of this order can be traced back to the Atlantic Charter of 1941, which established principles of democracy, territorial integrity, disarmament, and free trade. Institutions like the United Nations (UN), NATO, IMF, and the World Bank were created to uphold these ideals, solidifying U.S. dominance during the Cold War and in the unipolar era following the Soviet Union's collapse in 1991. The expansion of free trade reinforced the assumption that economic liberalization would lead to prosperity and democracy. However, globalization brought unintended consequences, particularly with the rise of China as a powerful economy that did not follow the expected path to democratization. 

 

China's entry into the WTO in 2001 marked a pivotal moment, as the U.S. believed that economic freedom would lead to political reform. Instead, under Xi Jinping's leadership, China consolidated power, increased state surveillance, and repressed dissent while becoming an economic giant. These developments challenged Western assumptions about the relationship between trade and democracy. At the same time, globalization did not live up to its promise, with rising inequality leading to disillusionment and an erosion of trust in multilateral institutions.