Intensifying US-China geopolitical rivalry dominates Asia-Pacific dynamics in 2026, centered on control of key maritime routes like the Malacca Strait, Taiwan, and South China Sea islands. The US bolsters alliances with Taiwan, Japan, South Korea, and the Philippines to counter China's militarization and secure trade flows. Taiwan-Japan semiconductor cooperation enhances supply chain resilience and deterrence against coercion. Trade shifts see China diversifying exports to ASEAN amid US tariffs, while AI-related tech trade surges from Asian hubs.
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