The ‘Rising China’ phenomenon is known to be one of the most significant events of the 21st Century which is causing tensions amongst the polar powers. The U.S. gradual shift from asymmetric level of warfare to a more traditional form of rivalry, apparent from the rebalancing act in Asia mainly due to transformation of geopolitics from Unipolar to Multipolar, poses considerable risks to global economy which already is in a state of recession. Any miscalculation either on part of the U.S., Russia or China over territorial disputes or formation of new alliances could result in unintended or devastating regional and global consequences which could only be mitigated through strong international institutions.