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As the prospect of a new Cold War between China and the United States and its allies grows, it is pertinent to examine the original Cold War, which dominated the international system for four decades after the end of the Second World War. At the heart of the contest was a perception of living standards. The Soviet Union just could not compete on this front. But China today, which has a rapidly rising living standard, presents a very different challenge, especially as the United States' capitalist model falters. As Americans are increasingly tempted by authoritarian responses to their economy's ills, China seems likely to win in the 'market of ideas'.