The US-China rivalry is the dominant force shaping Asia-Pacific geopolitics, trade, and regional security in 2026, driving competition over maritime routes and strategic areas like Taiwan and the South China Sea[1]. China is strengthening its military capabilities near Korea and in the South China Sea while conducting new exercises, escalating tensions across the region[1]. Japan and South Korea are consolidating their alliances with the United States amid persistent instability on the Korean Peninsula and heightened geopolitical risks[1]. Southeast Asian nations including the Philippines and Indonesia are surging their military buildups with naval and missile upgrades to counter major power shifts and uncertainty[9].
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