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

The US-China rivalry remains the dominant geopolitical force shaping Asia-Pacific security priorities and economic governance in 2026, with both nations intensifying competition over maritime routes and strategic islands. China is strengthening its military capabilities near Korea and in the South China Sea while conducting major exercises, reflecting its assertive regional posture. Washington's 2026 National Defence Strategy pivots decisively toward deterring China along the First Island Chain, explicitly downgrading Europe and other regions to prioritize Indo-Pacific containment. Taiwan, the Taiwan Strait, and the South China Sea remain critical focal points for regional stability due to their technological centrality and military significance.