As US-China tensions rise, Asian governments and firms seek new trade and security strategies, warns APAC Advisors' Steven Okun.
Governments and companies across Asia are exploring new trade and security options as US-China tensions deepen during President Donald Trump's second term, reported Singapore's Hinrich Foundation.
Steven Okun of APAC Advisors stated that Trump is constrained domestically but largely unchecked abroad, giving him greater latitude to shape foreign policy. He warned that the next two years could be more tumultuous than the last, with volatility across trade, technology, and geopolitics.
Mr. Okun described three overlapping global orders: unipolar in the continuing reach of US power, bipolar in the US-China contest over technology and rare earths, and multipolar as countries cooperate outside Washington and Beijing. He noted that relations are now in a strategic stalemate rather than a truce, shaped by Beijing's Made in China 2025 plan and Washington's tariffs and export controls.
With tariffs likely to remain central to Trump's economic statecraft, many countries are quietly pursuing middle-power cooperation and trade agreements. The 2026 US midterms could strengthen Democratic prospects, though election interference and shifting coalitions may influence the outcome.
Mr. Okun emphasized that governments and companies must prepare for looming risks, including energy insecurity from the Iran war and Hormuz blockade, a continuing US-China trade war, climate pressures, and artificial intelligence disruption that could reshape politics, inequality, and infrastructure demand.
