ASIA-PACIFIC TRADE, SECURITY TENSIONS RISE

Asia-Pacific’s most important story is the tightening link between geopolitics, trade, and regional security as major powers compete over supply chains and strategic routes. ASEAN economies are gaining importance in global manufacturing, while trade in AI-related goods, semiconductors, and data-center equipment is driving growth across the region. At the same time, long-running flashpoints such as the South China Sea, Taiwan Strait, and East China Sea keep military tensions elevated. Japan, the Philippines, India, China, and the United States are all adjusting policy and defense ties in response to these pressures.