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This study raises the following question: Will the neoliberal political economic model turn out to be indisputably superior to the so-called “China model” after the novel coronavirus disease 2019 pandemic and the current United States–China rivalry end? This question is raised because the neoliberal political economic system has been slowing down since the global financial crisis of 2008, whereas the China model has performed considerably well. The current acceleration of the United States–China hegemonic rivalry makes this question a timely and relevant issue for investigation. Currently, the Western neoliberal political economic system is struggling with two fundamental problems: the increase in economic inequality and the rise of populism. This study defines the current situation of the neoliberal political economic system as being in a crisis owing to these problems. The neoliberal political economic system must tackle these problems not only to surpass China’s challenge but also to recover from its current crisis. Given this mindset, the major arguments of this study are as follows: The neoliberal political economic model, often called “the Washington Consensus,” that has dominated for 40 years in the neoliberal political economic world has increased income inequality. The decline of the middle class caused by this increasing inequality is one main reason why political populism has lately grown in many Western countries. In addition, the policy requirement of the Washington Consensus that was imposed by Bretton Woods institutions concerning developing countries has not been effective. In fact, it has caused much harm to developing countries by straining their potential for development. As long as advanced Western countries and Bretton Woods institutions hold on to the Washington Consensus in their attitude toward developing countries, the Beijing Consensus, also known as the China model, may seem more attractive to developing countries. The study argues that the neoliberal political economic system should be drastically reformed and the Washington Consensus should be left behind. The Washington Consensus has failed not only as an effective development model for developing countries but also as a sustainable model for advanced Western countries. To surpass the challenge of the China model, the neoliberal political economic system must confront the deteriorating income inequality problem and solve the current crisis. With regard to the issue of increasing income inequality, the China model is no better than the Washington Consensus; in fact, it may be worse. How China will deal with this problem and continue its economic growth remains to be seen.