US CHINA RIVALRY DRIVES ASIA-PACIFIC SECURITY AND TRADE IN 2026

The rivalry between the United States and China is the dominant geopolitical force shaping Asia-Pacific security priorities and economic governance in 2026. Washington and Beijing are intensifying competition to control maritime routes, secure energy resources, and militarize strategic areas including the Senkaku, Spratly, and Paracel Islands as well as Taiwan and the Korean Peninsula. China is strengthening its military capabilities near Korea and in the South China Sea while conducting exercises under missions like Justice Mission 2025 and Peace and Friendship-2025. Major power competition, regional political vulnerabilities, and critical economic interdependencies create a dense and potentially unstable environment across the Asia-Pacific region.