Hu Angang;Tsinghua University;  

China's economy has created so many splendid miracles in human history since the 1978opening- up and reform. As the second largest economy following the United States in the world,we should acknowledge the tremendous political advantaged brought by Socialist with Chinese special characteristics,along with the rapid catch- up with the social standards in U. S. By utilizing the theory of the life cycle of national development,the author of this article reveals the process and the enchanted reasons of recession in U. S. from the perspectives of GDP,export volume,manufacturing output,human resources and comprehensive national strength. This article concludes that,the essence of competition among nations is the competition of institutional arrangements. Because of the cultural roots and the vested interests in military and financial sector,it is undeniable that the national strength of U. S. will be weakened gradually. Meanwhile,the path of China's new socialist will indicate its vitality and superiority