US-CHINA RIVALRY SHAPES ASIA-PACIFIC

The defining Asia-Pacific story is the intensifying US-China rivalry, which is driving regional security priorities, maritime competition, and economic strategy. Tensions center on strategic chokepoints and contested waters, including Taiwan, the South China Sea, Malacca, and Luzon, where military posturing and sovereignty disputes remain elevated. At the same time, trade is being reshaped by supply-chain realignment, with Southeast Asia, Taiwan, Japan, and South Korea gaining importance as firms diversify away from China. Regional governments are also deepening security and economic cooperation to reduce coercion risk and preserve stability in an increasingly fragmented order.