US-CHINA RIVALRY DRIVES ASIA-PACIFIC GEOPOLITICS IN 2026

The most critical story shaping Asia & Oceania in July 2026 is the intensifying US-PRC rivalry that defines regional security and economic governance across the Asia-Pacific. Washington and Beijing are escalating competition while instability persists on the Korean Peninsula and China addresses internal vulnerabilities. Japan and South Korea have consolidated their alliances with the United States amid this major power competition. This dynamic creates a dense, potentially unstable environment where systemic escalation remains constrained by high costs despite ongoing geopolitical risks.