The paper seeks to analyze the rise of state power in the light of spatial economic shifts and examines the historical context of China's rise and challenges facing it. In world history, only countries that were spatial economic hubs have been able to enjoy prosperity over centuries. China is not yet such a country, despite its persistent efforts. Nor is China likely to become an economic hub in the foreseeable future. China is under mounting pressure from new economic demands posed by shifts in the geo-economic status of the U.S.. The fact that the global economy thrives along coastlines also causes problems for China, a country with a long coastline and a vast hinterland, creating rifts between northern and southern China, central and local governments, and different provinces. All these factors might well hinder China's development in the future.