U.S.-CHINA RIVALRY DRIVES ASIA-PACIFIC

The dominant Asia-Pacific story is the intensifying U.S.-China rivalry, which is shaping regional geopolitics, security priorities, and economic governance. Maritime chokepoints, Taiwan, the South China Sea, and the Korean Peninsula remain the main flashpoints because they affect both military posture and trade flows. At the same time, economic interdependence among China, Japan, South Korea, and Taiwan continues to act as a stabilizer even as it creates supply-chain vulnerability, especially for semiconductors and critical resources. Middle-power trade and digital-rule cooperation, including stronger EU–South Korea ties, show that regional states are also responding through new economic and regulatory partnerships.