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In order to ‘walk, chew gum, and play chess’ at the same time, the US will have to both invest at home and sign more trade deals. A speech late last month by Jake Sullivan, President Biden’s national security adviser, on “Renewing American Economic Leadership” clarified that the administration wants to build resilience to “de-risk” from China. But dealing with Beijing will require more than investing at home. Washington also needs to re-engage in negotiations with China to manage difficulties in the bilateral relationship. And to better compete, the United States should get back into the business of signing trade deals. As Trade Representative Katherine Tai quipped during her 2021 confirmation hearing, the United States can “walk, chew gum, and play chess” at the same time. The Biden administration should not only invest in domestic resilience, but also participate in new trade agreements and negotiate directly with Beijing. Over the past two years, China joined the Regional Comprehensive Economic Partnership (RCEP), began acceding to the Digital Economy Partnership Agreement (DEPA), and applied to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). China’s integration into these new frameworks will create efficiencies in its own economy, while binding Beijing closer to the rest of Asia. Meanwhile, the United States does not expect to see the first “real outcomes” from the Indo-Pacific Economic Framework (IPEF) until the end of 2023, more than one year after its announcement. IPEF, moreover, lacks the market-access agreements characteristic of other, more substantive economic agreements. It is not surprising, then, that the 2023 Lowy Institute Asia Power Index ranks China 100 out of 100 on its “economic diplomacy” index, while the United States receives a ranking of only 34.6. The 2023 State of Southeast Asia survey similarly shows that only 21.9 percent of respondents view the United States as a leader in championing free trade, down from 30.1 percent in 2022. To be fair, Beijing has significant ground to cover before its markets become as free and as open as those in the United States. What many trade partners care about, however, is not where China and the United States have been, but where they are going. To many, it appears as if Washington is turning inward while Beijing continues to open its markets. This leads to the second error in Jake Sullivan’s “new consensus” on international economic policy. He expresses fatalism about China’s economic trajectory without giving credence to the possibility that China may change, or that the United States can play a role in influencing Beijing’s behavior. Sullivan explains, when “President Biden came into office, we had to contend with the reality that a large non-market economy had been integrated into the international economic order in a way that posed considerable challenges.” In response, Sullivan focuses on building domestic “resilience” and “capacity” to reduce America’s dependence on China. Washington appears to have given up on addressing the non-market practices contributing to U.S. dependence on China in the first place, including state subsidies and dumping. The administration also seems to have forgotten that access to low-priced imports is an important factor in the competitiveness of U.S. firms and the standard of living of American consumers. Fatalism about China’s trajectory tracks with the Biden administration’s overall Indo-Pacific Strategy, which does not seek to “change the PRC but to shape the strategic environment in which it operates.” Fortunately, Treasury Secretary Janet Yellen has bucked the trend by stating that she hopes to “engage” with Beijing “in an important and substantive dialogue on economic issues.” Not trying to influence Beijing, on the other hand, would give up an essential element of any effective China policy. Of course, prior negotiations were by no means unqualified successes. The Trump administration’s “phase one” trade deal largely failed to change Beijing’s behavior, in part, because the bilateral purchase agreements effectively, as Yukon Huang and Jeremy Smith of the Carnegie  Endowment for International Peace put it, “prescribed state-managed trade over market forces.” Other negotiations, however, have seen more success. Former Treasury Secretary Hank Paulson was able to persuade Beijing to revalue its currency by more than 20 percent in the late 2000s, helping to level the trade relationship. China’s WTO accession negotiations also moved the needle on the country’s economic policy. While Beijing failed to carry out many of its WTO commitments, China did reform key aspects of its economy and, notably, slashed its average tariff level from 15.3 percent in 2001 to 9.8 percent over the next decade. U.S. policymakers should learn the lessons of past negotiations rather than standing by as U.S.-China economic relations deteriorate further. One way to pressure Beijing to continue along the path of reform and opening up would be to carry out negotiations in concert with U.S. friends and allies. The Trump administration gave up significant leverage by dealing with Beijing bilaterally, outside the parameters of the international trade system. Plurilateral negotiations with U.S. partners — many of whom share U.S. grievances — may be more effective at convincing China to change course. The consequences of not having an effective economic dialogue with Beijing will become more apparent over time. Despite Washington’s wishes, China is simply not going away. Beijing will continue to join new trade agreements and integrate itself deeper into the global economy, even as the United States focuses on building resilience at home.

The escalating geopolitical competition has placed the US and China at odds. Both sides need to stabilise their relationship given the role they play in world affairs. US National Security Advisor, Jake Sullivan, met for over eight hours over two days last week with Chinese Communist Party Politburo Member and Director of the Office of the Foreign Affairs Commission, Wang Yi, in Vienna. The meeting, which had not been publicised by either side before the talks, has been seen as a part of an effort by both countries to stabilise their relationship which is perhaps at its lowest level in recent decades. Both sides have been locked in a steadily escalating geopolitical competition, even as they have close and intense economic linkages and a joint interest in dealing with several global and regional affairs. They are locked in opposing sides on issues like Ukraine and Taiwan, and a slow-motion decoupling as US companies diversify away from China and earnings of US companies in China are falling. Both sides used identical language to describe the outcome of the meeting. A White House readout noted that the talks featured “candid, substantive and constructive discussions on key issues of US-China bilateral relationship, global security matters, Ukraine and Taiwan. A Chinese readout used the same terms “candid, in-depth, substantive and constructive discussions” on ways to “remove obstacles in the US-China relationship and stabilise the relationship from deterioration.” Wang laid out the Chinese position on Taiwan, Ukraine and other regional issues. Speaking on background, a US official said that both sides saw the balloon incident as being “unfortunate” and were now looking to “re-establish standard, normal channels of communications.” Two days before the Sullivan-Wang meeting, US Ambassador Nicholas Burns met China’s Foreign Minister Qin Gang in Beijing. According to Qin, a series of “erroneous words and deeds” by the US had put the relationship between the two powers on “ ice” but stabilising ties was the top priority for both countries. Burns said that he and Qin had discussed “challenges in the US-China relationship” and the necessity of “stabilising ties.” The US is in a delicate balancing act with regard to its China policy. In recent years, American policy has shifted from engagement to competition and even containment. In the wake of the US-China trade war, and the first wave of US technology restrictions on Chinese firms like Huawei, there was talk of a “decoupling” of the two economies. The Chinese crackdown in Hong Kong and the post-Pelosi visit tensions over Taiwan have deepened the divide between the world’s two foremost powers. In 2021, Biden had told Xi of the need “to establish some common-sense guardrails” to ensure that the two do not get into an inadvertent conflict. Last November following their summit meeting in Bali, Biden said that “I am not looking for conflict, I’m looking to manage this competition responsibly” At the meeting, Xi called Taiwan “the first red line” that must not be crossed in China-US relations. This was to be followed by a visit of US Secretary of State Antony Blinken to Beijing, but that was called off last minute because of the balloon episode. Blinken met Wang at the Munich Security Conference later in February, but there was little forward movement. It may be recalled that last October, the US government put in place extensive new restrictions on China’s access to advanced semiconductors and the equipment used to make them. These restrictions were layered upon earlier decisions to restrict semiconductors to entities like Huawei and ZTE. Earlier this year, the US further tightened restrictions on the export of semiconductor manufacturing equipment to China. It coordinated with the governments of the Netherlands and Japan to tighten the guidelines. More recently, it has made it clear that it will restrict the actions of chipmakers who get funds under the CHIPs and Science Act. These restrictions are part of Washington’s effort to secure the supply of components that are needed for AI and supercomputers, as well as everyday electronics. In March came harsh signals from China. Speaking in March, President Xi Jinping for the first time named the US and said that it was in a policy of “comprehensive containment, encirclement and suppression against us.” The next day, the new Foreign Minister Qin Gang was more explicit. He slammed the US for equating the Ukraine issue with Taiwan and said that the “so-called ‘competition’ by the US is all-round containment and suppression a zero-sum game of life and death.” He warned that if the US “does not hit the brakes and continues to speed down the wrong path, no amount of guardrails can prevent derailing, and there will surely be conflict and confrontation.” In April, senior American officials have been trying to calm the turbulent waters. Last month, speaking at Johns Hopkins University, US Treasury Secretary Janet Yellen said that decoupling would be “disastrous” and that US goals relating to national security were not aimed at stifling China. She called for a plan of “constructive engagement” with three elements—national security of the US and its allies; an economic relationship based on “fair” competition; and cooperation on urgent global challenges. The Yellen speech was a comprehensive take on US approaches to China and struck what The New York Times said was a “notably positive tone” after months of tensions between the two countries. A week later, the tenor of her remarks was underscored by the National Security Advisor, Jake Sullivan at a speech at the Brookings Institution. Sullivan used the term “de-risking”, a term used earlier by EU Commission President Ursula von der Leyen: “We are for de-risking and diversifying, not decoupling,” he noted. Sullivan had earlier described the US policy of technology restrictions on China as creating a “small yard, with a high fence.” Now officials like Blinken, Yellen, Commerce Secretary Gina Raimondo and Secretary of Defence Lloyd Austin are trying to schedule meetings with their counterparts, but the going has been tough. According to Financial Times, the Chinese are reluctant to have Blinken visit because they were worried that the FBI may release the report based on the salvaged debris of the balloon. As for Austin, the problem is that his newly appointed counterpart General Li Shangfu is under US sanctions since 2018 in relation to Chinese imports of Russian arms when he was serving as a general. The US says that a meeting in third countries would not be affected by the sanctions, but it is unlikely that the Chinese will agree. General Li was appointed defence minister in March. With the tightening of the Western alliance in the wake of the Ukraine war, the US has sought to incorporate the European Union into its China project. Shortly after his three-day visit to China, French President Emmanuel Macron said in reference to Taiwan that Europe should not get caught up in crises “that are not ours”. Europe should try to be the “third pole” in the world order and that the need for Europe’s “strategic autonomy” was now accepted. But Washington points to a 30 March-speech by European Commission President Ursula von der Leyen where she said that it was neither viable nor in Europe’s interest to decouple from China, adding “We need to focus on de-risking—not decoupling.” She added in blunt language “The Chinese Communist Party’s clear goal is a systemic change of the international order with China at its center.” She added that it was there was a need for European companies to ensure that their “capital, expertise and knowledge are not used to enhance the military and intelligence capabilities of those who are also systemic rivals.” Just how much of the messaging from the US about the China relations is sincere, and how much of it is aimed at reassuring nervous allies who feel that Washington’s policies could have a negative impact on them is not clear. But Washington’s agenda remains clear. Speaking last week in Japan, where she is attending the meeting of G7 finance ministers, Yellen called for “coordinated action” by G7 nations against Chinese use of “economic coercion” against other countries. She also said that Washington has been considering the imposition of additional “narrowly targeted restrictions on outbound investment to China,” and that these have been discussed with other G7 partners. She said these would be targeted at technologies “where there are clear national security implications.” But as of now, it does appear as though the two sides are trying to create what David Ignatius called “a framework for constructive engagement.” There is some optimism arising from the detailed discussions that Sullivan and Wang held in Vienna which, as we note were described by both as “candid” and “constructive”. Both sides perceive the need to stabilise their relationship given the role the two countries play in world affairs. With the US going into election mode, it is not clear how long this period where the two sides are trying to work out a new modus vivendi will last. Engagement with China could become a political liability in the US where, if there is consensus on one issue, it is that of a hardline on China. World and New World Journal does not take positions on policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of World and New World Journal. 

Pivot to Asia - The Global South is on the march in their attempt to reshape the international system. How will this new order impact the old world? An increasing number of countries from the Global South, especially in Asia, are pushing to redefine the current global order. Three key trends to watch in this attempt to reshape the international system are the (potential) creation of a new economic order, the expansion of the BRICS grouping, and the transformation of China-Russia relationship after the invasion of Ukraine. In this changing international balance, Europe is losing its influence in the Global South, including in Asia. After centuries of global predominance, Europe’s strongest legacy is its role as a major normative power in global affairs. However, this reputation as a rule-setting power is set to change.   Why it matters 1. A (new) economic order. The debate over a “new Washington Consensus” has gained momentum after US national security advisor Jake Sullivan delivered a speech at the Brookings Institution on April 27th. The final communiqué by the G7 countries which met in Hirosahima on May 19-20 is the result of a similar strategic shift within the group, one that implies a move from economic interdependence to economic security. This shift is coupled with a major change in how the G7 intends to deal with emerging economies, such as their rival China and other partners in Asia that might soon become economic competitors in critical technologies. The G7’s sentiment has moved from promoting globalization and open markets to building industrial capacity in critical sectors, while securing existing and creating new strategic supply chains. Europe’s efforts in this context might not be enough: the investments envisaged so far are too little to reverse Europe’s dependency (often on China) in critical sectors. The EU must focus increasingly on diversifying its supply chains through securing access to rising economies in the Indo-Pacific. Here, joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could represent an opportunity.  2. BRICS+? The BRICS foreign ministers’ summit in June was yet another steppingstone toward enlargement. The countries that expressed a significant interest in joining the grouping are Iran, Saudi Arabia, the United Arab Emirates, Cuba, Democratic Republic of Congo, Comoros, Gabon, and Kazakhstan: all these countries sent their representatives to Cape Town. Egypt, Argentina, Bangladesh, Guinea-Bissau and Indonesia participated virtually. While the membership process might be a long one, the group’s upcoming expansion highlights the Global South’s political will to rise its voice, with a plethora of actors eager and able to leverage the new competition between powers which is shaping up after the Ukraine war. In this framework, Asian countries such as China and India are competing with one another to lead the BRICS.   3. China and the Stans. On May 19, Xi Jinping met in Xi’an with the (leaders of) the five Central Asian “Stan”-countries (Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan). Russia, the region’s traditional kingmaker, was noticeably absent. The meeting kickstarted – for the first time offline – a summit named C+5 and highlighted Beijing’s belief that it can now make deals within the region without Moscow’s supervision. China’s newfound independence in Central Asia and Moscow’s growing dependence on Beijing after the war in Ukraine provides new insights the on China-Russia relationship: although the two countries are united by their common desire to contest the US-led world order, the Sino-Russian relation seems increasingly tilted in China’s favor. This instable relationship could result in a stronger Chinese presence in Central Asia.  4. Loss of strategic centrality. Europe does not only risk becoming increasingly peripheral in world affairs, but also losing its bargaining power with the emerging Indo-Pacific economies. On the one hand, the EU needs to diversify its supply chains away from China and likely towards the ASEAN; on the other, the Global South – and by default its Asian members – is more aware of the current strategic window of opportunity to redesign the global balance of power.   Our take We are witnessing rapid changes in the international arena. In the coming months there will be increasing requests to review global norms. Therefore, the leading event will be the upcoming BRICS Summit in August: the meeting will probably certify the process to accept new members. Among the countries that are voicing their desire to reset the rules, some are considered by the West (mainly) as rivals, such as China, and as partners, like India. Therefore, Washington and Brussels cannot simply accept or dismiss their requests. Asia is claiming its century: the integration of this claim for a renewed global order into the current world order has just started. Its most important implications will be on the economic side, namely the redistribution of industrial capacity and trade relation in the context of de-risking from China.  Spotlight: G7  The G7 Hiroshima Summit has sent some clear messages to the rest of the world. The decision to invite President Zelensky to the gathering was a move meant to reinforce the unity of the members regarding the Ukraine invasion in the face of Russia — and China, too. The West has criticized China’s 12-point position paper on the Ukraine war, since it does not call for Russia to abandon occupied territories. The G7 countries have also announced a strengthening of the sanctions, seeking to curb products that could be used by the Russian military. The other important takeaway of the G7 is the joint statement directed at China, which includes a strong criticism of Beijing’s “economic coercion” and invites the PRC to play according to international rules. The G7 have also reiterated their position on divisive topics such as security in the Indo-Pacific and Taiwan, retreating their commitment to preserve peace and stability in the region. Despite the joint statement and the declarations by the leaders on the challenges posed by China, the G7’s stance on Beijing is still a balancing act. While concerned about being overly vulnerable with China, G7 economies and their industrial base remain strongly interconnected with the Asian country and despite calls for “de-risking”, such as cutting China out from some sectors like raw materials, it is impossible at the time.  Experts’ viewsThe implications of China’s activism among the BRICS countries  The next BRICS Summit will take place at a critical juncture for the Global South. Russia is still at war, Brazil has a new administration eager to flex its muscles globally, and China has reached unprecedented influence across the developing world. Since they are all connected by the same desire of multipolarity away from US and Western hegemony, it is likely that the BRICS will try to offer a roadmap towards a new international order. This roadmap, however, is far from consensual: will Russia embrace the peace dialogues offered by Brazil or African nations – and what role will China play in brokering any such proposal? Will China and the other BRICS be able to cooperate economically to promote development worldwide? Are the BRICS ready for its first enlargement, and who is most likely to join in the coming years? This arrangement will require some mutual concessions and the outcome will help shape the future world order.  Guilherme Casarões, Fundação Getulio Vargas  The push to strengthen and even expand the BRICS, especially by China, should be viewed more broadly through the lens of a pragmatic Chinese foreign policy. It has not only sought to strengthen ties within BRICS but with other regions and countries who are instrumental for its trade and infrastructure connectivity imperatives.  This happens against the backdrop of a shift towards a multipolar world order with China as a rising power and rising geo-political tensions. Given that this bloc advocates for issues that are relevant to the Global South (global governance reform, support for a rules-based international order and multilateralism in times when countries retreat to unilateral measures), it is no surprise that other countries in the South wish to join. Regarding this summit, I see no major implications for the bloc, the core business of the BRICS will continue with South Africa advancing its five priority areas. However, we can anticipate a discussion on its formal expansion. Trading with local currency seems to have found new impetus following the sanctions placed on Russia. All this notwithstanding, it is important to note that the ‘de-dollarisation’ in trade debate is not a new concept for BRICS and its less about challenging the dollar but strengthening other currencies against external economic shocks. The real test is for the host country depending on whether President Putin attends the heads of state summit in August, given Pretoria’s obligations under the Rome Statute and domestic law.  Luanda Mpungose, South African Institute of International Affairs (SAIIA)  China’s push for a stronger BRICS on the global stage is advancing along a number of trajectories. Firstly, there is the BRICS expansion as well as the BRICS+ format that are likely to bring the majority of the Global South into BRICS-related platforms of economic cooperation. The implementation of the BRICS+ format may serve as a precursor for liberalizing trade across the Global South and exploiting the potential for boosting South-South trade and investment ties. The expansion in the membership of the Shanghai-based New Development Bank as well as the creation of its regional centers will increase the scope for connectivity projects across the developing world. There is also the greater use of national currencies (most notably the yuan) via de-dollarization as well as the R5 BRICS common currency project that if launched would mark a key transformation of the global financial system.  Yaroslav Lissovolik, BRICS+ Analytics   What and Where Thailand is ready to Move Forward   The May elections in Thailand resulted in a clear victory for the opposition parties. Led by Pita Limjaroenrat, Move Forward has won 152 seats, becoming the most voted party in the elections. This party is the heir to Future Forward, which was dissolved by the military government in February 2020, and was born out of the 2020-2021 protests against the army and the monarchy. The second party in the country is the historic Thai opposition party led by the Shinawatra family, the Pheu Thai. However, while the population has expressed its preference, there is no guarantee yet that Move Forward, and the opposition, will govern. Indeed, to be elected Prime Minister, and form a government, Pita will need to win the majority in the bicameral parliament made up of the elected 500 seats in House of Representatives and the 250 seats of the Senate – whose members are handpicked by the military. The Move Forward coalition with Pheu Thai and the other opposition parties so far can count on little more than 310 votes, a long shot from the majority needed to govern. The opposition must garner support among the senators – which generally have little interest in going against the military that put them in power – or among the parties that have yet to declare their allegiance.  Cambodia: Hun Sen is getting rid of the competition ahead of July elections  On the 14 of May, Cambodia’s opposition party – the Candlelight Party – has been disqualified from running in the upcoming July elections by the country’s election commission. The party has allegedly failed to submit the necessary documentation to participate in the electoral race. With the exclusion of the Candlelight Party from the coming elections, the only possible competitor to the ruling Cambodian People’s party (CPP) of PM Hun Sen – who has been in power for 38 years – has been eliminated. This is not the first time that the main opposition party has been cut out of the electoral race. For instance, in the 2017 the Cambodian court, which is heavily colluded with the CPP, dissolved the Cambodian National Rescue Party (CNRP) before the 2018 general elections – a party that was given new life when its members created the Candlelight Party. However, the members of the opposition continue to be persecuted by Hun Sen’s forces with many political exponents arrested on charges of treason, assaulted, or forced to leave the country. With the opposition forces largely depleted and the main party banned from running for elections, Hun Sen is likely guaranteed another term.   The United States seeks to expand influence in the Indo-Pacific  Washington took advantage of two key international events to strengthen its strategic position in the region. During the Quad Leaders’ Summit, which took place on the sidelines of the G7 in Hiroshima, President Biden, Australia’s PM Albanese, PM Kishida of Japan and PM Modi of India stressed their unity and stated their plans to invest in digital infrastructure in the region. Throughout the meeting they did not mention China directly in their statements, but their references to the country were clear. The Quad expressed concern over the militarization of the region and the use of both economic and military coercion to alter the status quo – a clear reference to Chinese activity in the South China Sea. Another important step for the US to consolidate its position in the region is the announcement of the Supply Chain Agreement under the framework of the Indo-Pacific Economic Framework for Prosperity (IPEF). The agreement includes the 14 IPEF partner countries, namely Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, the US, and Vietnam. A year following the launch of the IPEF, this agreement is the first practical measure undertaken by the group. The group did not announce any official trade commitments, there is expectation among partners for increased cooperation and monitoring of supply chains fragility. The concrete development is still unclear, but the agreement signals the need for Indo-Pacific countries to avoid supply chain disruption and to minimize their dependence on the region’s main economic player, China.  Semiconductors: China fires back   China has gone on the offensive in competition over the semiconductor sector. The Cyberspace Administration of China (CAC) has stated that products by Micron, the US largest memory chip maker, are a “security risk for the information infrastructure supply chain” barring infrastructure operators from buying them. While additional information has yet to be revealed, some negative impacts are expected for Micron even if China and Hong Kong accounted for only 16% of the revenue of the company in 2022. The measure is a retaliation to America’s effort to cut China out from the semiconductor sector and slow the development of its industrial base. Since October 2022, the Biden Administration has imposed strict controls over chips export, followed by the Netherlands and Japan, preventing China from accessing and producing more advanced semiconductors. China’s declaration comes also after the leaders of the G7 grouping released a statement criticizing the country’s economic coercion tactic. After the move from Beijing, Micron fears that their products will be replaced by South Korean competitors, Samsung and SK Hynix, on the Chinese market. In the rising technological row between the US and China, there is also fear that Beijing might choose to put some export controls over other sensitive technologies, such as solar panels – where China dominates the whole supply chain.    TREND: Despite rate hikes, Asian unemployment is faring well (but not for everyone)  In the current context of high inflation and high rates, unemployment has turned out to be one of the main socio-political issues of Asia. With skyrocketing prices hurting businesses and consumers, many central banks in the West have adopted more hawkish monetary policies during the last year. Yet, the soaring cost of money has forced many businesses into a tight spot with concerning consequences on the employment level. Some countries though – like Japan, China, and Indonesia – have made the unorthodox choice to not significantly raise rates during the last year, while others – like South Korea and India – have adopted similar policies to those of the FED and the ECB. However, the results vary. In Japan the unemployment rate has been quite steady at around 2.6% for some time now, but in China the range (5.2-5.7%) was wider, especially due to the uneven nature of the post-Covid economic recovery. Yet, as the economy is slowly returning to normal, Beijing’s unemployment rate is gradually decreasing. Meanwhile Korea has consolidated a positive trend, with the last available figure at 2.5%, but the reforms of the labor market proposed by President Yoon Suk-yeol may cause some issues. The critical indicator though will be youth unemployment. Employment in aging societies, like those of East Asia, will increasingly become a core issue to maintain the viability of existing social welfare programs. So far China has a staggering 20.8% unemployment rate in the 16-24 years old age group which is particularly concerning, as it is the 7.2% recorded in South Korea. Japan is faring quite well but unemployment in the 25-34 years old age bracket has risen since the beginning of the year from 3% to 4%.

While it is prudent to be cautious, it may also be wise to explore cooperation in those areas where there are shared interests rather than assume that the BRICS and the West are strategic rivals on all fronts. This analysis was first published in the Global Observatory, 30 August 2023. When Jim O’Neill coined the BRIC acronym in 2001, the point he was trying to convey was that the global economic system needed to incorporate the world’s largest emerging economies. His advice fell on deaf ears and in 2009, Brazil, China, India and Russia decided to take matters into their own hands and formed the BRIC grouping. South Africa joined the group in 2010 to form the BRICS. This July, the group held its 15th summit in South Africa, where they decided to add six new members: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates. More are likely to join in the future, including countries like Indonesia and Nigeria.  What these countries have in common is a frustration, if not a grievance, about being side-lined to the periphery of the world economy. Together, the BRICS represent approximately 40% of the world’s population. The combined size of their economies are approaching approximately 30% of the world’s GDP, which puts them roughly on par with combined size of the economies of the G7 countries, depending on whether size is measured in GDP or PPP.  More importantly, in the next few decades, the combined size of the BRICS economies will surpass that of the G7. Despite this growing parity, all the members of the BRICS, with the exception of Russia, self-identifies as being part of the Global South, i.e., they feel excluded from a global system dominated by the Global North. Their stated aim is to work towards a future system of global governance where they will have equal political and economic say in global institutions, and where no one state will dominate others. In pursuit of this aim, BRICS countries have established their own development bank, set up their own contingency reserve arrangement, are developing their own payment system, and have started to trade with each other in their own currencies.  The BRICS want to free their economies from the dollar-based international financial system. They feel exposed to United States interest rates that can have a negative effect on their economies, for no domestic reasons. The dollar-based financial system also provides the US with significant advantages in the global economy, which the BRICS see as unfair. They also feel a dollar-based financial system gives the US hegemonic influence in global affairs, through for example, exerting US jurisdiction on all dollar-based trade or investments that flow through US banks or financial institutions.  While the BRICS countries have these clear shared macro-economic interests, many of the members also have competing interests in other domains. China and India are geopolitical rivals in South Asia. Egypt and Ethiopia are at loggerheads over the Nile. Brazil, India, South Africa and the newly-added Argentina are democracies, while other countries in the group are governed by a diverse set of autocratic regimes, which could set up an irreconcilable clash of values on some issues. Many of the members of the BRICS also have close ties to the United States and Europe, including Egypt, India, Saudi Arabia and South Africa. South African President Cyril Ramaphosa, in a televised statement to the nation on the eve of hosting the BRICS summit in South Africa, explained that South Africa remains non-aligned, and he announced that in 2023 the country will also host a major United States-Africa trade meeting and an EU-South Africa summit. South Africa will also host the G20 in 2025, the first in Africa. For many countries, membership of the BRICS does thus not necessarily imply aligning themselves with one global alliance versus another, but rather cooperation in a group around a series of shared interests.  Where does this place the BRICS on the Russian war in Ukraine? The BRICS summit in Johannesburg steered clear of taking a position on the war, other than welcoming mediation aimed at resolving it through dialogue and diplomacy. Some BRICS members like Iran are clearly supporting Russia, while most others have stopped short of either supporting or condemning Russia. For many such as Egypt, the war has adversely affected their economy. Two of the BRICS members, Egypt and South Africa, are part of an African initiative to seek a mediated end to the conflict, which is perhaps the first African initiative to mediate an international conflict. Overall, however, the BRICS have their eyes on the medium- to long-term transformation of the global macro-economic and financial system, and countries like China are probably frustrated that the Russian war in Ukraine has drawn attention away from this larger objective.  Are the BRICS and the West headed for a new cold war? The shift in the center of gravity of the global economy to the East is an unstoppable fact driven by demographics and economic factors like the cost of production. At the same time, Europe and the United States will remain major economic players. In tandem with these changes in the global economy, it is clear that the global political order will become more multipolar, with China, Europe, India, and the United States representing some of the major centers of influence.  In an August 27 article, Jim O’Neil argues that the influence of the BRICS will be determined by their effectiveness, not their size. An expanding BRICS will most likely succeed in helping its members to break free from a dollar-based international financial system, but that will take several decades of incremental change before it reaches a tipping point. Whether that is a good or bad thing depends on the degree to which your economy is tied to the United States. Many of the BRICS countries, including China, Egypt, India, Saudi Arabia, and South Africa all have economies whose prosperity are closely tied to the Unites States. They will thus have an interest in a slow, stable freeing up of the international financial system, and this should give everyone that is prudent time to adapt.  The same logic also applies to changes in global governance architecture. Apart from Russia, all the other BRICS countries have an interest in making sure that changes in the global order are managed at a slow steady pace that does not generate instability. All the BRICS countries, apart from Russia, are also strong supporters of multilateralism, with the United Nations at its center. Many Western countries and BRICS members may thus have more shared interests than the doomsday headlines suggest. While it is prudent to be cautious, it may also be wise to explore cooperation in those areas where there are shared interests rather than assume that the BRICS and the West are strategic rivals on all fronts.

The meeting at San Francisco between Presidents Joe Biden and Xi Jinping offers a short respite in the broader strategic conflict that both states have been waging since at least 2017. The friends and trade partners of both nations now have an opportunity to employ middle power diplomacy to advocate for their interests and also the moderation of competition. In his book Destined for War: Can America and China Escape Thucydides’s Trap?, Graham Allison provided historical examples of when a status quo power met a rising power and whether and why it resulted in war. Unlike his peer John Mearsheimer, author of the Tragedy of Great Power Politics, who concludes that competition and conflict between the US and China are inevitable due to the structure of the international system, Allison’s book provides a warning to both the US and China that the decisions they make could be positively or negatively consequential, leaving room for agency to be the final arbiter of the fate of bilateral relations. The pre-APEC meeting between President Joe Biden and President Xi Jinping was an invitro international relations experiment testing the premises of Allison and Mearsheimer as to whether US-China strategic competition will be shaped by the agency of leaders or the structure of the system. Superficially, the 15 November 2023 meeting allowed for an agreement limiting the precursors of fentanyl coming into the United States and, importantly, reviving regular talks under what is known as the military maritime consultation agreement. These modest but important agreements followed a throng of high-level cabinet visits to Beijing and reciprocal visits by Wang Yi, China’s foreign minister, that were meant to stabilise US-China relations. These agreements suggest that leaders in both countries can find diplomatic crosswalks to stabilise the relationship in functional areas. It also intimates that other window of cooperation such as climate change, anti-terrorism, transnational disease prevention, and poverty alleviation may be fertile ground for collaboration if leaders choose to move forward. While the modest takeaways from the meeting in San Francisco underscores that agency does have a role in bilateral relations, we should be realistic that they also reflect the deep structural challenges that exist between the United States and China. Moreover, they also represent the intractable nature of the structural challenges in the relationship, placing friends and allies of the United States and major trading partners of China, such as Australia, Japan, Canada, and Southeast Asian nations, with a difficult quandary: How to balance their economic prosperity and stability through a vibrant and beneficial trade relationship with China while maintaining a strong, comprehensive relationship with the United States as it deepens its strategic competition with China? In the US, there is bipartisan consensus that China represents a challenge to US leadership that needs to be dealt with comprehensively. Under the Biden administration, we have seen a systemic, sequential, and allied-first approach to competing with China. It has brought accolades from friends and allies and, predictably, criticism from China that Biden has not only adopted a continuation of policies towards China from the Trump administration, but that his policies are even more severe. The Biden administration has reinforced and reified its alliance partnerships with South Korea and Japan. It then enhanced its commitment to the Quadrilateral Security Dialogue (Quad) and demonstrated substantial leadership in terms of pushing back against Russia’s invasion of the Ukraine. More recently, the Biden administration forged a new trilateral partnership between South Korea, Japan, and the United States, under the so-called Camp David Principles. It also strengthened the quadrilateral security dialogue and its efforts to provide public goods to the Indo Pacific region. And we’ve gradually seen a more coherent AUKUS strategy that aims to create synergy between the UK, Australia, and the United States in the areas of AI research, quantum computing, hypersonic missiles, cyber, and importantly nuclear power submarines. Last, but not least, the adoption of the Chips Act, limiting the sale of sophisticated semiconductor chips to China and the associated technologies, suggests that the United States is not stepping down from its competition with China, but stepping up in the same way that the United States transformed every aspect of its governance following the 911 attacks. Similarly, there seems to be consensus in the Chinese political elite that the US and its allies are intent on containing China and attenuating its development. Xi Jinping’s 20th Workers Party Report at the 20th Party Congress highlighted the concerns China has about its external environment and advocated for strengthening the PLA to deal with separatist forces and external threats, while consolidating it political, social, economic, and ideological systems. Through the Belt and Road Initiative (BRI), the expansion of the BRICS and Shanghai Cooperation Organization, and the advocacy of the Global Development/ Security and Civilization Initiatives, China under the leadership of Xi Jinping is aiming to transform itself, its periphery, and the international system such that all are more conducive to China’s core interests, including preserving its political system. These realities suggest that rather than fostering a reset in bilateral relations, what we are seeing is both China and the United States taking a tactical pause in their strategic competition to amass the resources they need to compete successfully in the Mearsheimer world of great power politics and the maximisation of power. In closed-door discussions on China with Japanese, South Koreans, Australians, Canadians, Southeast and South Asians, as well as Europeans, we hear similar refrains: while China represents a “systemic challenge” in the case of the Europeans and NATO, or is a “disruptive power” in the case of Canada, or as Japan writes in its 2022 National Security Strategy, “the greatest strategic challenge in ensuring the peace and security of Japan and the peace and stability of the international community,” China is also an important and largely irreplaceable economic partner and essential player in dealing with global challenges such as climate change. The question for friends and allies of the United States is how to balance the increasingly difficult and competitive relationship between China and the United States in a way that ensures that they can continue to have strong economic relationships with China while building resilience into their economies and into their economic relationship, such that the economic weaponization of supply chains and the monopolisation of resources cannot negatively affect trading partners of China. Part of these states’ responses to protect their national interests from the structural realities of Sino-U.S. strategic competition will be a middle power diplomacy that aims to shape the competitive nature of the relationship between the US and China. This will be implemented through coordinating their diplomacy and proactively lobbying, insulating, and investing in rulemaking in the realms of security, trade, and international law alongside their like-minded ally the US, but at times also in opposition to the US. This will require investing in diplomatic resources in both the US and China, in the broader Indo-Pacific region, and at the subnational level to forge strong state to state relations to effectively lobby US policy makers to inculcate the interests of allies and friends of the US in their strategic rivalry with China. Similarly, through forging stronger relations with Chinese provincial leaders though trade and investment, middle powers and stakeholders in the US-China strategic competition may be able to have their interests reflected in a moderation of China’s approach to competition with the US.

There were smiles for the camera, handshakes, warm words and the unveiling of a couple of agreements. But beyond the optics of the first meeting in over a year between the leaders of the world’s two biggest economies, not an awful lot had changed: There was nothing to suggest a “reset” in U.S. and China relations that in recent years have been rooted in suspicion and competition. President Joe Biden hinted as much just hours after the face-to-face talks, confirming that he still considered his Chinese counterpart, Xi Jinping, a “dictator.” Beijing hit back, with foreign ministry spokesperson Mao Ning telling reporters Biden’s remark was “extremely wrong and irresponsible political manipulation.” As a scholar of U.S.-China relations, I believe the relationship between the two countries can be best described as an “enduring rivalry” – a term used by political scientists to denote two powers that have singled each other out for intense security competition. Examples from history include India and Pakistan, France and England, and the West and the Soviet Union. Over the past two centuries, such rivals have accounted for only 1% of the world’s international relationships but 80% of its wars. History suggest these rivalries last around 40 years and end only when one side loses the ability to compete – or when the two sides ally against a common enemy. Neither scenario looks likely any time soon in regards to China and the U.S. How enduring rivalries end China “is a communist country … based on a form of government totally different than ours,” Biden said after his meeting with Xi. That comment gets to the heart of why diplomacy alone cannot reset the U.S.-China relationship. Washington and Beijing are not rivals due to any misunderstanding that can be sorted out through talks alone. Rather, they are rivals because of the opposite reason: They understand each other only too well and have come to the conclusion that their respective world outlooks cannot be reconciled. The same is true for many of the issues that divide the two countries – they are framed as binary win-lose scenarios. Taiwan can be governed from Taipei or Beijing, but not both. Similarly, the East China and South China seas can be international waters or Chinese territory; Russia can be crippled or supported. For the United States, its Asian alliances are a force for stability; for China, they’re hostile encirclement. And both countries are right in their respective assessments. Diplomacy alone is insufficient to resolve a rivalry. At best, it can help manage it. When the US calls, who picks up? Part of this management of the U.S-China rivalry involves finding areas of agreement that can be committed to. And on Nov. 15, Biden and Xi announced deals over curbing China’s production of the deadly drug fentanyl and the restoring of high-level, military-to-military dialogue between the two countries. But the fentanyl announcement is very similar to the one Xi gave to then-President Donald Trump in 2019. The U.S. administration later accused China of reneging on the agreement. Similarly, committing to restarting high-level dialogue is one thing; following up on it is another. History is dotted with occasions when having an open line between Beijing and Washington hasn’t meant a whole lot in times of crisis. In 2001, when a U.S. surveillance aircraft collided with a Chinese jet over Hainan Island, Beijing didn’t pick up the phone. Likewise, during the Tiananmen Square massacre, then-President George H.W. Bush urgently tried to call his counterpart Deng Xiaoping but was unable to get through. Moreover, focusing on what was agreed to in talks also highlights what wasn’t – and is unlikely to ever be – agreed to without a substantial shift in power that forces one side to concede to the other. For example, China wants the U.S. to stop selling arms to Taiwan. But Washington has no intention of doing this, as it knows that this will make the disputed island more vulnerable to Beijing. Washington would like China to end its military displays of strength over the Taiwan Strait; Beijing knows doing so risks seeing Taiwan drift toward independence. American policymakers have long said what they want is China to “change” – by which it means to liberalize its system of governance. But the Chinese Communist Party knows that doing so means self-liquidation – every communist regime that has allowed space for alternative political parties has unraveled. Which is why American attempts to engage China are often met with suspicion in China. As former Chinese leader Jiang Zemin commented, engagement and containment policies have the same aim: to end China’s socialist system. For similar reasons, Xi has shunned attempts by the U.S. to bring China further into the rules-based international order. The Chinese leader saw what happened when Soviet leader Mikhail Gorbachev tried to integrate the Soviet Union into the Western order in the late 1980s – it only hastened the demise of the socialist entity. Instead, Xi calls for a massive military buildup, the reassertion of Chinese Communist Party control and an economic policy based on self-reliance. Actions speak louder … The encouraging words and limited agreements hammered out in the latest meeting between Xi and Biden should also not distract from the actions that continue to push the U.S. and China further apart. China’s show of force in the Taiwan Strait has been sustained for three years now and shows no sign of abating. Meanwhile, Beijing’s navy continues to harass other nations in the South China Sea. Similarly, Biden has continued the U.S. path toward military alliances aimed at countering China’s threat. It recently entered a trilateral agreement between the U.S., Japan and South Korea. And that came two years after the establishment of AUKUS, a security partnership between the the U.S., Australia and the U.K. that has similar aims. Meanwhile, the U.S. administration will continue to tighten the screws on China’s economy through investment restrictions. Biden is well aware that easy flowing money from Wall Street is helping China weather choppier economic waters of late and is keen to turn off the tap. The point of diplomacy This isn’t to say that diplomacy and face-to-face talks are pointless. They do, in fact, serve a number of interests. For both men involved, there is a domestic upside. For Biden, playing nice with China projects the image of a statesman – especially at a time when, due to U.S. positions on Ukraine and the Middle East, he is facing accusations from the political left of being a “warmonger.” And encouraging Beijing to tread softly during the U.S. election year may blunt a potential line of attack from Republicans that the administration’s China policy is not working. Meanwhile, Xi is able to showcase his own diplomatic skills and present China as an alternative superpower to the U.S. and to potentially cleave the Western business community – and perhaps even major European nations – from what he would see as the U.S. anti-China coalition. Moreover, summits like the one in San Francisco signal that both the U.S. and China are jointly committed to at least keep talking, helping ensure that a rocky relationship doesn’t descend into anything more belligerent – even it that doesn’t make them any friendlier.

How are the fluctuating tensions between Washington and Beijing over Taiwan expected to affect Israel? On January 13, William Lai, the leader of the Democratic Progressive Party (DPP), was elected president of Taiwan. A few days earlier, for the first time in four years, the United States-China Defense Policy Coordination Talks took place in Washington, marking the end of a prolonged round of tension between the two powers, which had peaked in August 2022 when the speaker of the US House of Representatives visited Taiwan. Taiwan is a major point of friction in the already tense relations between the two powers. Managing the disagreements between them has broad implications, including for Israel. The ongoing strategic rivalry between the two superpowers—the United States and China—is the most important geostrategic factor of our time. The two countries are vying for technological dominance and control over resources, that will shape our future, and infrastructure that is critical for civilian, economic, and military purposes. The United States and China are also competing for global influence by forming partnerships and trying to influence world order, including its values, institutions, and mechanisms that regulate it. Can they shape the rules of the competition between them without spiraling into a military conflict that would have devastating global consequences? Taiwan may be the most volatile flashpoint in the complicated relationship between the two powers. For China, the “reunification” with Taiwan is one of its “core interests”—a top objective and a flagship issue in its foreign policy. Although the United States has repeatedly declared that it is committed to the “one China” policy, it is also an ally of Taiwan. The United States has warned China to refrain from making unilateral, aggressive moves vis-à-vis Taiwan, while supplying Taiwan with military resources to deter China and prevent a forceful takeover. Since assuming power in 2013, President Xi Jinping of China has repeatedly emphasized Taiwan’s unification with China as a key objective. During a meeting with President Joe Biden in November 2023, President Xi said that China “prefers” a peaceful unification, but he did not dismiss the use of force. On the eve of Taiwan’s 2024 elections, President Xi further stated that unification is “inevitable.” The tensions between the powers over Taiwan had escalated following the previous elections on the island in 2020. During this period, senior American officials visited Taiwan, and the United States and Taiwan signed weapons deals in August and September of that year, followed by a marked increase in Chinese military aircraft penetrating the island’s air defense identification zone and crossing the “midline” between the island and mainland China. China’s perception of encirclement was further heightened by the United States’ strengthening of its alliances and initiatives in the Indo-Pacific region (such as QUAD, AUKUS, and IPEF) and by the increased diplomatic pressure exerted on China, through boycotting the 2022 Winter Olympics and protesting its human rights record. But even during this period, despite rising tensions, the two nations maintained ongoing communications, including the Alaska talks in March 2021—although they were notably tense—and the meeting between the presidents in November of that year. The tension peaked in April 2022, when then Speaker of the US House of Representatives Nancy Pelosi announced her intention to visit Taiwan. China strongly protested, and the White House even recommended Pelosi to reconsider her visit due to concerns about potential military escalation. Pelosi refused and proceeded with her visit in August, delivering a speech at the Taiwanese legislature and advocating for increased American–Taiwanese cooperation. In an article published in the United States before her visit, Pelosi wrote that “at a time when the world faces a choice between autocracy and democracy . . . it is essential that America and our allies make clear that we never give in to autocrats.”   In response to Pelosi’s visit, China held a large-scale military exercise that disrupted air and maritime traffic in the region and released a white paper emphasizing “The Taiwan Question and China’s Reunification in the New Era.” Furthermore, as a countermeasure to Pelosi’s visit, the Chinese Ministry of Foreign Affairs announced that it was suspending all dialogue and cooperation with the United States, including dialogues between the military commands, the ministries of defense (DPCT), and the maritime military coordination (MMCA), and cooperation in the fields of illegal immigration, criminal legal assistance, transnational crimes, counternarcotics, and climate change. In November 2022, presidents Biden and Xi met in Bali, Indonesia, in an attempt to put the relations between the two powers back on track. After the meeting, the White House issued a statement announcing that the United States will continue to compete actively with China, but the two countries must manage their competition responsibly, without letting it escalate, while maintaining open channels of communication and continuing to cooperate on global issues such as climate change, counternarcotics, debt relief, health, and food security. Regarding Taiwan, the United States reiterated its commitment to the one China policy but strongly opposed China’s aggressive actions, which violate peace and stability in the Strait and in the entire region. The Chinese also released a statement, noting that President Xi highlighted that Taiwan is a core Chinese interest and constitutes a red line that is nonnegotiable in the relations between the two countries. It was anticipated that the year 2023 would begin on a more positive tone, with US Secretary of State Antony Blinken’s scheduled visit to China in February. The visit was canceled when a Chinese balloon was discovered floating over US territory for a week until the US Air Force intercepted it. Although the White House at first tried to downplay the incident, with President Biden initially referring to it as a “minor breach” and said that the Chinese government was unaware of the issue. China claimed that a weather monitoring and research balloon had strayed off course. Public pressure, however, led the administration to cancel Blinken’s visit. Subsequently, the US Department of Commerce imposed restrictions on six Chinese companies linked to balloon and aviation technologies that are used by the Chinese military, requiring that they receive special approval to access American technology. In April and May, China retaliated at a relatively low bar by imposing sanctions on a US member of Congress who visited Taiwan and sentenced an American citizen living in Hong Kong to life imprisonment, for alleged espionage for the United States. These actions reflect the efforts of both China and the United States to take focused, restrained measures, to avoid escalating tensions. The absence of a strong reaction from China to the establishment of a select committee within the US House of Representatives, focused on examining the US–China strategic competition, suggests that China sought to prevent further escalation of the conflict.   Efforts to end the crisis and restore talks were renewed in May 2023 when the head of the CIA met with his Chinese “counterparts.” In June, US Secretary of Defense Lloyd Austin and Chinese Minister of Defense Wei Fenghe met on the sidelines of the Shangri-La conference in Singapore. Secretary of State Blinken’s anticipated visit to China took place later that month. In July, US Special Envoy for Climate John Kerry and Secretary of the Treasury Janet Yellen traveled to China, followed by a visit of US Secretary of Commerce Gina Raimondo in August. These high-level meetings concluded on a note of cautious optimism, with both sides acknowledging “progress” but not a “solution,” as the purpose of the meetings was to stabilize relations rather than to resolve the issues in dispute. In September 2023, Secretary of the Treasury Yellen and Chinese Finance Minister He Lifeng launched two new working groups on economic and financial issues. Moreover, Pentagon officials and their Chinese counterparts met and discussed the US Department of Defense’s cyber strategy, followed by a meeting of the American and Chinese presidents in San Francisco in November. The American efforts to renew the military dialogue between the two countries was initially met with refusal by China until December, when General Brown, the chairman of the Joint Chiefs of Staff, spoke with his Chinese counterpart General Liu Zhenli. In early January 2024, a few days before the elections in Taiwan, the annual Defense Policy Coordination Talks between the two countries were held at the Pentagon for the first time in four years. These developments reflect China’s acute sensitivity toward the Taiwan issue and its willingness to take significant measures against perceived violations of its One China Policy, especially by the United States. Despite numerous disputes, the growing rivalry between them, the defiant measures, and the reciprocal sanctions, these events highlight that the two powers recognize the importance of keeping channels of communication open. This dialogue is crucial for pursuing shared interests, resolving disputes, and minimizing the risk of military escalation that could have far-reaching consequences for both nations as well as the global community. The ongoing tension between the United States and China over Taiwan also has implications for Israel. First, the increasing friction between the powers has accelerated the formation of two opposing camps and has limited Israel’s ability to maneuver between them. As demonstrated (again) since the outbreak of the war between Israel and Hamas, the United States is Israel’s greatest friend and its most important strategic ally. While China is an important economic partner of Israel, its policy is not that of a friend, and its oppositional stance toward Israel has the potential to cause significant damage. The United States expects its allies to stand by its side and to align more closely with its policies vis-à-vis China, especially concerning advanced technologies and critical infrastructure. Failing to meet US expectations could strain US–Israel relations. Second, a military escalation between the United States and China would also have global economic consequences, seriously disrupting supply chains of raw materials and essential goods crucial to Israel. Finally, the US administration recently linked the military aid granted to Israel to that of both Taiwan and Ukraine, framing them as three democracies under threat. While this linkage underscores the US commitment to its allies, it also creates constraints and interdependencies. The attention and resources that the United States currently allocates to Israel and to the broader challenges in the Middle East could be compromised if the United States faces serious military crises elsewhere in the world, and this could have far-reaching impacts on Israel.

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Abstract: Since the beginning of the XXI century, the Indo-Pacific region has become the “focus” of strategic competition between the world‟s great powers. This area included many “choke points” on sea routes that are strategically important for the development of international trade, playing an important role in transporting oil, gas, and goods around the world from the Middle East to Australia and East Asia. The article analysed the geostrategic position of the Indo-Pacific region and the strategic adjustments in foreign affairs of some major powers in this region, specifically the US, China, and India. To achieve this goal, the authors used research methods in international relations to analyse the main issues of the study. In addition to reviewing previous scholarly research and reviews, the authors used a comparative approach to assess the interactions between theory and data. The authors believed that these data are important for accurately assessing the strategic importance of the Indo-Pacific region, and this area was an important trigger for the US, China, and India to make adjustments to its foreign policy. If the US proposed a strategy called “Free and Open Indo-Pacific” (FOIP), India‟s strategy was called the Indo-Pacific Initiative. China‟s Indo-Pacific strategy was clearly expressed through the “String of Pearls” strategy and the “Belt and Road Initiative” (BRI). As a result, in the geopolitical context of the Indo-Pacific region, the competition between major powers (the US, China, India...) is also becoming fiercer and more complex. It has a significant impact on other countries in the region. INTRODUCTION Nowadays, the conception of geopolitics has not received a consensus among generations of scholars, and it tends to increase complexity in the international context after the Cold War and create different schools in the study of political science and international relations. This diversity reflects the interplay between the development of theory and the development of international political status and shows the diverse nature of international politics and international political studies. Hans J. Morgenthau, a typical realist theorist (1948), said, “International politics, like every other kind of politics, is a power struggle. Whatever the ultimate aims of international politics, power is always the immediate aim” (p. 13). In geopolitics, this relationship is expanded into a highly complex tripartite relationship between three factors: geography - power - politics. The Britannica Dictionary defines geopolitics as “the analysis of the influence of geography on power relationships in international relations” (Deudney 2013). Geopolitics can be understood as a dialectical next step of the relationship between geography and power. Geography does not fully determine how a power interaction happens, but geography significantly affects any political analysis. It is one of the sources of hard power, but sometimes, it is the leading cause of disputes between powerful actors. Ultimately, increasing ownership of geographical factors will increase power/hard power. This is the last and perhaps the most significant factor enabling an international political actor to prevail in imposing their political will on one or more other political actors. In past centuries, powerful Western countries consistently sought methods to expand their colonies and garrisons, aiming to control major transportation routes worldwide and exploit natural and human resources in their areas of influence or occupation. Their objective was either to maintain hegemony on a global or regional scale or to challenge and contest existing hegemony. This approach is commonly used to explain peace, conflict, competition, and development through a geopolitical lens. Traditional German geopolitics, the birthplace of modern geopolitics, which rose during World War I and flourished under the Third Reich, was influenced by geographical determinism, especially theories that occurred in the mid-twentieth century. The German school believes that geopolitics is the study of space from the state‟s point of view. Specifically, Karl Haushofer asserted that “Geopolitics is the new national science of the state (...) a doctrine on the spatial determinism of all political processes, based on the broad foundations of geography, especially of political geography” (Cohen 2015, 15). In this way, geographical factors are believed to be objective actors that are relatively fixed in nature; the effects of geographical factors on the political policies of a country are considered intuitively cognizable through deductive methods, and their consequences to power interactions in a relevant region can be predicted accurately with the same method of thinking. However, it is more complex and ambiguous due to the diverse coexistence of geographical and non-geographical variables. In the early XXI century, one way to understand shaping theory was not to study geography or politics but from politics to geography or a bidirectional way between two factors. Saul Bernard Cohen‟s point of view is one of the most common conceptions of the impact of geography on politics. Cohen (2003): “Geopolitics is the analysis of the interaction between, on the one hand, geographical settings and perspectives and, on the other hand, political processes. (…) Both geographical settings and political processes are dynamic, and each influence and is influenced by the other. Geopolitics addresses the consequences of this interaction” (Cohen 2015, 16). The point of view of Yves Lacoste (French geographer) represents the opposite. He noted that: The term „geopolitics‟ is understood in a variety of ways. It refers to all things that involve the competition for power or influence over territories and the people living there, the competition between all types of political powers, which is not only countries but also political movements or secret armed groups, the competition for controlling or dominating large or small territories (Lacoste 2012, 28). We ignore the extension of the political interaction entities, and this definition shows that “competition” between political entities plays a leading role in this idea of geopolitics. There are two points we need to expand from this conception of geopolitics. The first is the purpose of the disputes, though often the manifest purpose rather than the latent purpose is to own natural and human sources. The second is competition between political entities, which is organic interaction, like what Foucault recognizes as power. These traditional ways of studying were challenged by the School of critical geopolitics, which occurred and developed at the beginning of the XXI century. the XXI century. According to critical geopolitics, which comes from the social structuralism approach, when experts in state administration create ideas about geographical locations, these ideas influence and underpin their political behaviour and policy choices. And these ideas affect how people process their concepts of place and politics. This tendency has led researchers to focus on analyzing geographical discourses to identify underlying assumptions about power. This aims to break the major concepts of international politics (Flint 2006; Toal 2006). The conceptual awareness of critical geopolitics has been abandoned (Fouberg et al. 2012, 535). In this article, we maintain a unified concept of terminology. Concepts that begin with the prefix “geo” are usually theories of behaviour or policies (military, economic, politics, etc.) of one or more states through geographical, natural, or humanistic aspects rather than focusing on the influence of geographical variables only. Prefix concepts (“geo”, short for geography) should be in the politics/political science sub-disciplines rather than in geography. THE GEOPOLITICAL IMPORTANCE OF THE INDO-PACIFIC REGION The Indo-Pacific region is situated along the coasts of the Indian Ocean and the Western Pacific Ocean, with seas connecting these two vast bodies of water. The Indo-Pacific region is home to more than half of the world‟s population and has abundant resources and strategically significant international sea lanes. It is one of the most dynamic economic regions, fostering cooperation and growth between developed and developing economies. Interestingly, the term “Indo-Pacific” is not novel but instead borrowed from the field of geo-biology, where it denotes tropical waters stretching from the western coast of the Indian Ocean to the Western Pacific Ocean. The term “Indo-Pacific” with a geopolitical connotation was first mentioned by Gurpreet S. Khurana, Director of the National Maritime Foundation in New Delhi (India). In the article “Security of Sea Lines: Prospects for India-Japan Cooperation”, published in Strategic Analysis in 2007, G. S. Khurana defined the Indo-Pacific as a maritime space connecting the Indian Ocean with the Western Pacific Ocean, bordering all countries in Asia (including West Asia, Middle East) and East Africa (Khurana 2007, 150). He argued that India and Japan‟s common and core interests in the maritime domain would be complex to secure if the Indian and Pacific oceans were divided in strategic perception. Thus, the term “Indo-Pacific” was born as a new regional strategic vision. Japanese Prime Minister Shinzo Abe, in his address to the Indian Parliament in 2007, restored an ancient geographical view of Asia called “The Confluence of the Two Seas” (Chandra and Ghoshal 2018, 34), considering it a “dynamic coupling as seas of freedom and of prosperity” (Ministry of Foreign Affairs of Japan 2007) in Asia, set the target of linking the Pacific Ocean with the Indian Ocean to become the “Indo-Pacific” region, replacing the term of “Asia-Pacific”. The “Indo-Pacific” concept is supposed to be a geopolitical concept associated with countries inside and outside the geographical boundaries of the Asia-Pacific. Since 2010, this concept has become increasingly prevailing in strategic and geopolitical discourse and is employed by policymakers, experts, and scholars worldwide. Besides the geographical reference to the connection between the Pacific Ocean and the Indian Ocean, the concept also has strategic and geopolitical significance, reflecting strategic changes, particularly in maritime security. Regarding geographical space, the “Indo-Pacific” term is a connecting space between the Indian Ocean and the Pacific Ocean, which combines these two oceans into a singular regional construct (Berkofsky and Miracola 2019, 13). This region mainly stretches from the east coast of Africa to the west coast of the US. Indo-Pacific is located along the Indian Ocean and the Western Pacific Ocean, with the seas connecting these two oceans, including Northeast Asian, Southeast Asian, and South Asian countries, as well as many Middle East and African countries. Regarding the roles, functions, connectivity, and interdependence of the two oceans, the Indo-Pacific has a diversity of ethnicities, religions, cultures, languages, and politics. This region has rich resources and important sea lanes, has the three largest economies in the world (the US, China, and Japan), is one of the most dynamic regions in terms of economy, and can support and promote each other between developed and developing economies. The Indo-Pacific has 9/10 busiest seaports in the world. About 60% of the world‟s maritime trade passes through this region, of which a third passes through the South China Sea (The US Department of Defense 2019). In addition, the sea route in the Indian Ocean is vital for transporting oil, gas, and goods worldwide, from the Middle East to Australia and East Asia. This is also a famously unstable sea with piracy and terrorism. Therefore, ensuring security for the lifeline of the world economy has received special attention from many countries. Almost 90 percent of global trade and 2/3 of hydrocarbons have been transported across oceans, most concentrated in the Indian and Pacific Oceans. The Indian Ocean, in particular, carries over half of all global container shipping capacity and accounts for around 70% of all transshipment hydrocarbons. The Indian Ocean is one of the busiest international maritime trade channels, accounting for 1/9 of global seaports and 1/5 of the world‟s import and export cargo (Zhu 2018, 4). Every year, more than 100,000 ships pass through the Indian Ocean, including 2/3 of the oil tankers, 1/3 of the large cargo ships, and 1/2 of the container ships in the world (Kumar and Hussain 2016, 151). Strategically, the Indo-Pacific is viewed as a seamless structure connected by the strait of Malacca, the leading trade route connecting the two oceans. Two rationales explain the Indo-Pacific‟s strategic potential: Firstly, China‟s footprint throughout this region; secondly, the relative weakening of the US alliance system and its attempt to revive it (Das 2019). With topographical tectonics, the Indo-Pacific is also an area that holds the world‟s most important sea lanes and is home to strategic “choke points” of the world - the Suez Canal, Bab-el-Mandeb and the Strait of Hormuz to the northwest, the Mozambique Channel to the southwest and the Strait of Malacca (the strategic connection point between the Indian Ocean and the Pacific Ocean), the Sunda Strait, and the Lombok Strait in the southeast and the Cape of Good Hope. In particular, the Strait of Hormuz accounts for 40% of global crude oil shipments. Between Singapore, Indonesia, and Malaysia, the Strait of Malacca holds half the world‟s merchant shipping tonnage (Kaplan 2010, 7). In the context of increasing tensions in the South China Sea, the strategic location of the Strait of Malacca has become the focus of attention of countries whose economies are heavily dependent on this nasopharyngeal shipping route. Currently, the amount of oil transported through this strait is three times higher than the Suez Canal and 15 times larger than the Panama Canal (Tan 2011, 93). It can be said that the Indo-Pacific region has the most critical position for international maritime trade and the intersection of the political and economic strategic interests of many powerful countries. This region plays an increasingly important role in the XXI century, becoming the focus and center of world power. However, the Indo-Pacific is witnessing geopolitical competition and competition of interests among major powers. The US, China, India, Japan, and Australia have all made strategic adjustments to increase their influence and protect their interests in this region. The XXI century is considered “the century of seas and oceans” and is accompanied by fierce competition among world powers to gain strategic interests in the seas. In the past, nations primarily focused on competition for military objectives, geostrategic bases, and maritime traffic routes. However, in contemporary times, countries worldwide have shifted their focus towards competing for economic advantages and marine resources. The advancement of military capabilities and endeavours to vie for resources at sea increasingly indicate a trend toward leveraging maritime control to influence continental affairs. The “sea power” theory of US foremost thinker on naval warfare and maritime strategy - Alfred T. Mahan, has generated a premise for nations promoting sea power: “Control of the sea, by maritime commerce and naval supremacy, means predominant influence in the world; because however great the wealth product of the land, nothing facilitates the necessary exchanges as does the sea” (Mahan 1897, 124). Maritime security in the Indo-Pacific region has therefore become a “hot” focus in the maritime foreign policy agenda of powers. For the time being, the Indo-Pacific region is by and large peaceful and secure; however, it is confronted with some maritime security challenges: Firstly, regarding maritime disputes, there are about 40 maritime disputes between countries in the region, which could be disputes over territorial sovereignty or sovereign rights over the waters. Many disputes, including those in the East China Sea, South China Sea, Indian Ocean, or Senkaku/Diaoyu Islands, are viewed as potential flashpoints for a Sino-US war or even a Third World War (Echle et al. 2020, 126). While direct armed conflicts have yet to erupt in these areas, they serve as the underlying cause of the region‟s escalating security challenges. These conflicts stem primarily from the diverse security needs of numerous countries in the region. Moreover, given their strategic significance, these areas represent complex issues in Indo-Pacific maritime security, highlighting the intricate nature of the disputes. Secondly, piracy and armed robbery have driven the Strait of Malacca, the South China Sea, and the Indian Ocean to the top of the list of the most dangerous waters. In 2018, the number of piracy and robbery cases in these areas was 8, 57, and 25, respectively, placing them second only to West Africa, which had 81 cases (International Maritime Organization, 2019, 2). While the number of piracy cases in the South China Sea and Indian Ocean decreased to 34 and 10, piracy cases in Malacca Strait increased to 45 in 2019 (International Maritime Organization 2020, 2). Another notable transnational maritime security issue in the Indo-Pacific is piracy off the coast of Somalia, which affects the waters of the Gulf of Aden, the Arabian Sea, and the Western Indian Ocean (Elleman et al. 2010, 210). In response to this threat, the United Nations Security Council has passed Resolution 1816, which states that cooperating countries may enter Somali territorial waters and use all necessary means to combat piracy and armed robbery (Klein 2011, 280). Thirdly, alongside piracy, the Indo-Pacific region serves as a focal point for terrorist organizations such as Al-Qaeda and Al-Shabab. Following the 11 September terrorist attacks (commonly known as 9/11), countries including Singapore, Malaysia, the United Kingdom, New Zealand, and Australia have consistently coordinated their naval forces to combat terrorism in the Strait of Malacca, safeguarding oil tankers traversing the area. Additionally, new maritime security risks are emerging, particularly in the Indo-Pacific region, as terrorists exploit the Malay Archipelago as a sanctuary to identify vulnerable targets in the region and collaborate with extremists, Islamic insurgents, or members of organized crime networks. This fear has become much more real since the 2002 Bali bombings (Tan 2011, 91). Furthermore, terrorist organizations like Al-Qaeda, Abu Sayyaf, and Jemaah Islamiyah have extended maritime terrorism into Southeast Asia, affecting the broader region. The bombing of Super Ferry 14 in the Philippines in 2004 stands as the deadliest maritime terrorist attack globally to date, claiming the lives of 116 individuals (Safety4Sea 2019). Lastly, drug trafficking and human trafficking are frequent transnational concerns in the Indo-Pacific. Many multinational organized criminal groups rely heavily on drug trafficking by water for a significant portion of their revenue. Drugs produced in Afghanistan, India, and Indonesia are transported by sea to other countries via illegal markets. The manufacture and transport of drugs are rising in the Indo-Pacific region, and criminal groups are exploiting the Malacca Strait as their primary distribution route to Southeast Asia countries (Zulkifli et al. 2020, 19). Moreover, the human trafficking issue remains unresolved as the coast guard, or the security department of port and ship facilities cannot predict the consequences. Furthermore, one of the threats to maritime security in the Indo-Pacific region is arms trafficking. Most of the arms trade was carried by criminal organizations by sea in containers from southern Thailand to Aceh, Bangladesh, India, and Sri Lanka via the Malacca Strait and the Andaman Sea (Zulkifli et al. 2020, 19). The increase in arms trade is a significant contributor to the rise in maritime crime, particularly in Southeast Asia and the broader Indo-Pacific region. Consequently, territorial and maritime sovereignty disputes, coupled with the intricate linkages between transnational crime, piracy, and terrorism, have heightened the complexity of security threats in the marine domain. These developments strongly influence the adaptation of foreign strategies by several major powers, including China, India, and the United States. THE STRATEGIC ADJUSTMENTS OF SOME MAJOR POWERFUL COUNTRIES FOR THE INDO-PACIFIC REGION The Indo-Pacific region, with nearly half of the Earth‟s population, is at the center of the world‟s political and economic strategic interests. Currently, being rich in resources, many “throat” sea routes, and most dynamic economic and trade activities, this region plays an increasingly important role in the XXI century and beyond. However, the Indo-Pacific has been experiencing intense geopolitical competition, increasing pressure on trade and supply chains, and tensions in the technology, political, and security sectors. Great powers such as the US, China, India, Japan, and Australia have all made strategic adjustments to increase their influence and protect their interests in this region. United States of America Although not the first country to propose the Indo-Pacific concept, the US pioneered executing and implementing the Free and Open Indo-Pacific (FOIP) strategy. In recent years, the power has responded to global geopolitical changes by developing an Indo-Pacific strategy that seeks to rebalance the US to Asia as a counterweight to China‟s rise, developing alliances and partnerships to strengthen the Washington authority‟s interests over a large area stretching from the west coast of India to the west coast of the country. The US first coined the term “Indo-Pacific” through Secretary of State Hillary Clinton‟s official speech in Honolulu in October 2010. In 2017, following his inauguration, President Donald Trump intensified the term “Indo-Pacific” in official policy discourse (Turner and Parmar 2020, 229). In early June 2019, the US Department of Defense officially announced the Indo-Pacific Strategy Report for the first time. This strategy aims to enhance the US‟s bilateral alliances and multilateral cooperation mechanisms across economic, security, and maritime domains, establishing a comprehensive network spanning South, Southeast, and Northeast Asia. Subsequently, in November 2019, the US Department of State released a Progress Report detailing the implementation of the Indo-Pacific strategy. These developments underscore the significance of US engagement in the Indo-Pacific region as a top priority in President Donald Trump‟s foreign policy agenda. President Donald Trump chose the Indo-Pacific to underscore India‟s historical and contemporary significance in the region while affirming US interests and those of other countries. During a press conference in early April 2018, Deputy Assistant Secretary of State Alex N. Wong elaborated on the concept, offering insights into how the Trump administration defines “freedom” and “openness”. According to Wong, “freedom” in the strategy primarily emphasizes international freedom, aiming for countries in the Indo-Pacific region to pursue their paths without coercion. At the national level, the US seeks to foster societies in the region that gradually embrace freedom, characterized by good governance, protection of fundamental rights, transparency, and anti-corruption measures. On the other hand, “openness” is primarily focused on expanding sea and air traffic. Maritime traffic is crucial to the region‟s vitality, as approximately 50% of international trade traverses the Indo-Pacific, mainly through the East Sea. Therefore, expanding sea and air routes in the Indo-Pacific is increasingly vital and significant on a global scale (Le 2018). The US‟s “Vision for a Free and Open Indo-Pacific” was born for two primary reasons. Firstly, it stems from the internal factors of the US that are associated with the vital nature of national security and the role of the US in the world. As an area adjacent to many oceans, gateways, and throats connecting the US with the world, the Indo-Pacific has always been considered by the US to be a critical geostrategic area, directly affecting national security and the world leadership role of America. Implementing the FOIP strategy is a way for the US to protect national interests, ensure the freedom and security of maritime traffic, maintain the balance of forces, and promote diplomatic activities and society-culture exchanges in the area. Second, stemming from the regional security situation, China‟s rise along with construction and militarization in the East Sea are seen as threatening the free flow of trade, threatening to narrow the sovereignty of countries, and reducing stability and security in the region. Not only that, but China‟s BRI is also challenging the US‟s leadership role in the Indo-Pacific region - where there is no multilateral mechanism on security, mainly based on bilateral agreements and arrangements, such as the US-Japan Security Treaty, the US-South Korea bilateral defense treaty (Pham and Vu 2020, 103-104). The US‟s Free and Open Indo-Pacific strategy is constructed upon three fundamental pillars: security, economy, and governance. The objectives of this strategy are multifaceted. Firstly, it aims to sustain long-term US leadership within the Indo-Pacific region and globally, particularly in light of China (and Russia) being explicitly identified by the US as America‟s primary strategic competitors in the National Security Strategy of 2017 and the National Defense Strategy of 2018. Secondly, the strategy promotes free, fair, and reciprocal trade. The US opposes trade deficits and unfair trade practices by other nations, instead demanding equal and responsible behaviour from its trading partners. Thirdly, it aims to uphold open sea and airspace within the region. Fourthly, it effectively addresses traditional and non-traditional security challenges, including North Korea‟s nuclear program. Lastly, the strategy strives to ensure adherence to the rule of law and the protection of individual rights (The US Department of Defense 2019). The US‟s Free and Open Indo-Pacific strategy focuses on ensuring the country‟s interests, focusing on the “4P” formula in a clear order of priority: prosperity, peace, power through the deployment of American power, and finally, influence through American values and principles – Principles (Nguyen 2021a, 49). US‟s Indo-Pacific Strategy is expected that the vital sea lanes of the Indo-Pacific will “create the foundation for the global trade and prosperity” (The US Department of Defense 2019). Therefore, the US strives to promote a Free and Open Indo-Pacific by promoting economic, governance, and security linkages. The core goal of the US‟s Indo-Pacific strategy is to build an alliance axis, Quadrilateral Security Dialogue1 (QUAD) (including the US, Japan, Australia, and India) to curb and prevent China‟s rise in the region, gain dominance, and control the entire region, thereby continuing to maintain the economic interests, political power, military and diplomatic power of the US (Pham and Vu 2020, 103). This is one of the main pillars that help to realize this connectivity strategy between the two oceans. The QUAD aims to foster the sharing of common interests, values, and perceptions of security threats among the four member countries. This collaboration aims to establish a balanced power dynamic that upholds a “rules-based” order in the Indo-Pacific region. On 12 March 2021, the QUAD officially convened online to reaffirm its primary maritime security mission. The overarching objective is to counteract China‟s growing regional and global influence (The White House 2021a). Besides QUAD, on 15 September 2021, the US, UK, and Australia officially announced establishing a tripartite security partnership in the Indo-Pacific region (AUKUS). The first step can confirm that AUKUS is a new structure prone to “triangle” security in the Indian Ocean. The Pacific Ocean space aims to protect and maintain the shared interests of the parties in this region. A joint statement by US President Joe Biden, Australian Prime Minister Scott Morrison, and British Prime Minister Boris Johnson affirmed the partnership in AUKUS “guided by the enduring ideals and shared commitment to the international rules-based order” (The White House 2021b). This alliance aims to “help sustain peace and stability in the Indo-Pacific region” (The White House 2021b). [1] The Quadrilateral Security Dialogue (QUAD) was established in 2007 with four member countries: the US, Australia, Japan, and India. Its primary objective was to establish a trans-Pacific economic mechanism, potentially serving as the nucleus of the Asia-Pacific Economic Forum (APEC). After a 10-year hiatus, the QUAD group officially resumed the four-way dialogue in 2017, elevating it to a dialogue of foreign ministers. This resurgence occurred amidst heightened tensions between the US and China across various fronts, with Beijing's assertive behaviour posing security concerns for Japan, India, and Australia (Buchan and Rimland 2020, 3; Brunnstrom 2017). Therefore, the US‟s efforts to promote strategic cooperation, enhance engagement across economic, political, and security domains, and forge partnerships and alliances with regional countries reflect its ambitions in the Indo-Pacific. The Free and Open strategy serves as an extension of the “America First” policy, gradually bolstering the role and preserving the influence of the US in the region. China As a major power in Asia and globally, China inevitably focuses on strategically significant regions like the Indo-Pacific. Since the Cold War, particularly in the first two decades of the XXI century, China‟s ascendance has profoundly impacted global development, reshaping power distribution worldwide. This perspective is echoed by Robert D. Kaplan, a professor at the US Naval Academy: “China is currently changing the balance of power in the Eastern Hemisphere. On land and at sea, its influence extends from Central Asia to the Russian Far East and from the East Sea to the Indian Ocean” (Kaplan 2012, 200). China has stepped up its presence in the Indo-Pacific with the “String of Pearls” strategy and the “Belt and Road” Initiative (BRI). “String of pearls” is a term coined by American analysts to describe China‟s network of shipping lanes extending from southern China to the Indian Ocean, traversing strategic points such as the Strait of Mandab, the Strait of Malacca, the Strait of Hormuz, and the Strait of Lombok. It also encompasses other fundamental naval interests, including Pakistan, Sri Lanka, Bangladesh, the Maldives, and Somalia. Within this network, notable installations such as the military base on Hainan Island, the container shipping facility in Chittagong (Bangladesh), the deep-water port in Sittwe, the Kyaukpyu port, the Yangon port (Myanmar), the naval base in Gwadar (Pakistan), and the Hambantota port in Sri Lanka are referred to as the “jewels” or “pearls”. This chain of “pearls” extends from the coast of China, through the East Sea, the Strait of Malacca, across the Indian Ocean, and to the reefs of the Arabian Sea and the Persian Gulf (Kaplan 2012, 200). Each “jewel” within the “String of Pearls” represents China‟s geopolitical influence or military presence in key regions such as the Indo-Pacific, the East Sea, and other strategically significant seas. Through this strategy, China aims to extend its influence from Hainan in the East Sea through the world‟s busiest sea lanes towards the Persian Gulf. The primary objectives include restraining India, ensuring energy security, and asserting control over vital shipping lanes (Tran 2012, 77). To implement the “String of Pearls” strategy, China has improved relations with most of India‟s neighbours, including Pakistan, Nepal, Bangladesh, and Sri Lanka. In that context, Myanmar is a place that China can use as a springboard for its ambitions to expand its sphere of influence into Southeast Asia and South Asia (Gupta 2013, 82). Myanmar has an important strategic position between two major Asian countries, China and India. Besides, Myanmar is a coastal country in the Indian Ocean, so for Chinese policymakers, Myanmar is increasingly of more strategic value to China. Myanmar is strategically important to India and a key player in China‟s ambitions to reach the Indian Ocean. Myanmar is the only neighbouring country that can give China access to the Indian Ocean from the east, namely the Bay of Bengal and the Andaman Sea (Myo 2015, 26-27). China’s moves in the Bay of Bengal and the Andaman Sea are the first steps to ensure China’s best interests in the Indian Ocean. China has also assisted Myanmar in developing naval bases at Sittwe, Hianggyi, Khaukphyu, Mergui, and Zadetkyi Kyun by building refuelling facilities and radar stations for Chinese submarines to operate on the Bay of Bengal (Singh 2007, 3). These facilities gather intelligence on Indian Navy activities and are forward bases for Chinese Navy operations in the Indian Ocean. With India‟s naval expansion efforts at a standstill, the Chinese Navy‟s growing presence in the region has had enormous strategic consequences for India because India‟s traditional geographical advantages are increasingly threatened by China‟s ability to penetrate deeper into Myanmar. According to US military experts, the “String of Pearls” is the basis for China to inspect and monitor all vital sea lanes in Asia and the world, curb India, Japan, and Korea, and gain the advantage of direct access to strategic locations in the Pacific. “String of Pearls” strategy, China strengthens ties with regional countries through aid, trade, and defense agreements and launches new cooperation initiatives. In 2013, Chinese President Xi Jinping launched the Belt and Road Initiative (BRI). This initiative consists of two main parts: (i) The Silk Road Economic Belt (also known as the Land Silk Road) is a roadway designed with three branches (from China to Central Asia and Russia to Europe, from China through Central Asia, West Asia to the Persian Gulf, the Mediterranean Sea, from China to Southeast Asia, South Asia and the Indian Ocean); (ii) Maritime Silk Road in the XXI century aims to build transport routes between major ports in different countries, including the development of an economic corridor across the Indian Ocean, connecting China with South Asia, the Middle East, Africa and the Mediterranean (Pham 2019, 31-32). The objectives of this BRI are: first, to expand the strategic space and create a backyard area of China to control the Eurasian - African continent, creating a counterbalance to the US‟s Indo-Pacific strategy; second, dominate the Indian and Pacific Ocean regions, control related shipping lanes and regional seaport systems, dominate oil and gas supplies, establish military bases in these areas through which these roads pass; third, create a socio-economic environment for the expansion of China‟s “soft power”; fourth, build a security perimeter around China to prevent the US and its allies from entering the area that Beijing considers its “backyard”, supporting China to go out into the world; fifth, promote regional economic cooperation, rely on economic cooperation to promote political relations, create a catalyst to solve problems in relations between China and countries in the region, prevent the contraction of countries in the region that have disputes with China, including the issue of maritime and island disputes; sixth, through the “5 channels” (through policy, communication (on land, at sea), trade, currency and people) to access, penetrate and control the regional economy in order to promote economic development in the region to take control of international trade, the right to evaluate and the right to distribute international resources; seventh, solve the problem of excess production capacity, find a market for stagnant goods, find an investment market, effectively use China‟s huge foreign exchange reserves, find a market for the yuan, speeding up the process of internationalization of the renminbi; Eighth, access to energy resources, especially oil and gas; Ninth, take advantage of the surrounding environment to create conditions for more equal development among regions in the country, especially the border areas, western China (Dinh 2021, 7-8). China‟s BRI prioritizes the maritime sector when it proposes the “21st Century Maritime Silk Road” to connect seaports, one of the two main connections between China and Europe (Kuo and Kommenda 2018). It can be said that the BRI aims at strategic goals in terms of politics, security, economy, territorial sovereignty, and building a new framework of rules of the game in the region and the world, in which China plays a leading role (Tran 2017, 100). In addition, to counterbalance the Indo-Pacific strategy of the US and the QUAD, China has strengthened its relations with Russia and Iran by strengthening the Sino-Russian alliance in the Shanghai Cooperation Organization (SCO) and admitted Iran to this organization on 17 September 2021. China, Russia, and Iran have formed a “new maritime power triangle” and are preparing to launch a joint maritime exercise in the Persian Gulf. Previously, in December 2019, these three countries also conducted a joint maritime exercise in the Indian Ocean and the Gulf of Oman in the context of tensions between Washington and Tehran showing signs of escalation. India As a continental power occupying a strategic position in the heart of the Indian Ocean, India has become a prominent player in the Indo-Pacific region and one of the countries deploying manoeuvres to adjust foreign strategy. India‟s “Look East” policy (implemented since 1992) has extended India‟s foreign strategy to Southeast and East Asian countries. Over the years, India‟s regional involvement has shifted from economic ties to security cooperation. Prime Minister Narendra Modi‟s “Act East” policy (implemented since 2014) underpins India‟s approach to the Indo-Pacific region, in which this foreign policy will strengthen India‟s participation through strategic partnerships. In addition, the country has its vision for the Indo-Pacific region. India wants to promote peace and stability through an equal approach at sea and air, freedom of navigation, combating maritime crime, protecting the marine environment, and developing a green economy (Ministry of External Affairs, Government of India 2018). In 2015, in the Report “Ensuring Maritime Security: India‟s Maritime Security Strategy”, India clearly stated that its strategic vision shifted from the Euro-Atlantic to the Indo-Pacific, associated with the “Act East” policy. In his speech at the Shangri-La Dialogue (June 2016), Indian Prime Minister Narendra Modi laid out India‟s vision for the Indo-Pacific region, emphasizing India‟s participation in organizations, taking ASEAN as the center of the region, such as the East Asia Summit (EAS), the ASEAN Defense Ministers Meeting Plus (ADMM+). Indian Prime Minister N. Modi first announced the Indo-Pacific Initiative during his speech at the Shangri-La Dialogue held on 1 June 2018 in Singapore. Prime Minister N. Modi affirmed, “The Indo-Pacific is a natural region (...) India does not see the Indo-Pacific Region as a strategy or as a club of limited members” (Ministry of External Affairs, Government of India 2018). On 4 November 2019, Prime Minister N. Modi once again mentioned this idea at the 14th East Asia Summit (EAS), held in Bangkok (Thailand), which “propose a cooperative effort to translate principles for the Indo-Pacific into measures to secure the shared maritime environment” (Ministry of External Affairs, Government of India 2019). This proposal also transforms India‟s conception of the Indo-Pacific region into practical and enforceable measures in the maritime domain. Regarding the policy, India has demonstrated its determination to implement the Indo-Pacific Initiative through the establishment of a Directorate-General for the Indo-Pacific under the Ministry of External Affairs (MEA) since April 2019, based on merging international organizations, such as ASEAN, the Indian Ocean Rim Association (IORA) and the QUAD including the US, Japan, Australia, and India. In September 2020, India continued to establish the Directorate for Oceania in the MEA to promote India‟s administrative and diplomatic fields, stretching from the Western Pacific Ocean to the Andaman Sea. India‟s Indo-Pacific Initiative consists of 7 pillars, including 1) Marine security, 2) Marine ecosystems, 3) Marine resources, 4) Capacity building and resource sharing, 5) Disaster risk reduction and management, 6) Technology and trade cooperation, and 7) Connectivity and shipping, which can be grouped into six groups: 1) Maritime security; 2) Marine ecosystems and marine resources; 3) Building maritime enforcement capacity and information sharing; 4) Manage and reduce disaster risks; 5) Science and technology cooperation; 6) Trade connection and sea transportation (Nguyen 2021). India‟s approach to this strategy is inclusive and transcends traditional security issues or geopolitical challenges. India also wants to promote cooperation in environmental issues related to the sea and ocean sectors. Through the Indo-Pacific Initiative, India wishes to lead, chair, and coordinate in cooperation inside and outside the region, especially with small and medium-sized countries. Compared to the US‟s Free and Open Indo-Pacific Strategy, India expands the geographical reach of the region under the Indo-Pacific Initiative, whereby the Indo-Pacific covers the African coast to the west of the Indian Ocean and the Arabian Sea, including neighbouring countries in the Gulf, islands in the Arabian Sea and the African region. By asserting “both geographical poles” of the Indo-Pacific Initiative, India emphasizes the balance between the two groups of policies, “Act East” and “Act West”, forming an integral part of the country‟s strategy in the Indo-Pacific region. For India, strengthening security cooperation with the US, forging a special strategic partnership with Japan, and maintaining the relationship with Australia are strategic focuses in shaping economic and security architecture in the region based on the “diamond quadrilateral” alliance. At the same time, to connect with the open Indo-Pacific space, India also strengthened ties with Asian, European, and African countries. CONCLUSION Due to the Indo-Pacific region‟s current structural makeup, the major regional powers have gradually turned it into a strategic area of power competition. Countries interested in the region actively participate in the Indo-Pacific regional architecture and seek ways to strengthen their positions to act as a counterweight in regional international affairs. Today, the Indo-Pacific is seen as a crucial element in the changes in global geopolitics and the focal point of numerous power struggles. In this region, besides the US, two Asian powers play a major role in regional security, China and India, because both countries seem to be putting all their efforts into improving regional security, greater competition than other areas due to their position. India is prepared and actively involved in a motivated strategy against China in the Indo-Pacific, in contrast to other regions where it has historically been more passive and weaker. India is moving toward the US in this competition but maintaining a neutral stance. Additionally, it is working to increase influence and fortify multilateral ties to close the power gap with China. With regard to China‟s growing influence in the region and its security implications for India and other regional countries, there exists a wide pessimism, particularly in Western analyses. It is quite pertinent to point out here that the India - China relationship is nicely balanced between the elements of cooperation and conflict, like that of the US-China relationship. Especially there is enough space in the Indo-Pacific region and beyond to accommodate both rising China and India. They can coexist and grow peacefully. However, the trends and issues will ostensibly continue to unfold in the region with greater worrying security concerns. In the coming years, maritime security within the Indo-Pacific region will be a key factor in the development of many countries. It, however, remains a major concern in the area because of the growing non-traditional security threats, in addition to maritime boundary disputes. Particularly, events in the SCS will continue to attract much of the regional and international attention. These could engulf the regional and international stakeholder‟s capability to maintain peace, security, and stability within the region in a sustained and effective manner. Most importantly, countries in the Indo-Pacific region share many of these common concerns. Invigorating greater cooperation and coherence in their strategy could help address the problems collectively. Moreover, establishing an Indo-Pacific Regional Security Architecture will be very handy in addressing common security concerns and threats. As a result, as the Indo-Pacific area is being shaped, the competition between the major powers is also becoming more complex and severe, significantly impacting the other nations in the region. In short, during the first two decades of the XXI century, the Indo-Pacific region has witnessed constant competition among numerous world powers. The region‟s strategic, economic, and commercial significance has positioned it at the heart of global contention, reshaping the character of international politics. The Indo-Pacific has become the focal point of international conflicts and power dynamics, heralding a significant new geopolitical landscape in the XXI century. It can be asserted that the power competition among these nations will shape the interaction patterns among Indo-Pacific countries in the ensuing years of this century. 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