US-CHINA COMPETITION INTENSIFIES ACROSS ASIA-PACIFIC AS TRADE PATTERNS SHIFT

US-China rivalry continues to dominate Asia-Pacific geopolitical dynamics in 2026, with both powers competing for control of critical maritime routes, energy resources, and strategic territories including Taiwan, the South China Sea, and key chokepoints like the Malacca and Luzon Straits. Military tensions persist on the Korean Peninsula and in the South China Sea, where China strengthens its military capabilities amid ongoing exercises and territorial disputes. Trade patterns have significantly reoriented, with US imports from China declining by $130 billion as supply chains shift toward ASEAN economies and Taiwan, while AI-related semiconductor trade emerges as a major growth driver. Regional stability remains precarious despite economic interdependence among China, Japan, South Korea, and Taiwan, with Taiwan and South China Sea flashpoints posing acute risks to strategic coherence.