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Asia Is Trying to Navigate Between the US and China

Singapore / Bangkok | 21 July 2026

Across Asia, governments, investors and businesses are increasingly preparing for a world in which rivalry between the United States and China is no longer a temporary disruption but a permanent feature of the global economy.

Rather than choosing sides, many countries are pursuing a more flexible strategy, working with both powers where it serves their national interests while strengthening domestic capabilities and diversifying their supply chains. At a recent Reuters NEXT Asia event, Thai officials described this approach as building pragmatic partnerships based on investment quality, technology transfer, jobs and stronger local supply chains.

Asia’s New Strategy Is Resilience, Not Alignment

The shift reflects a broader change in how countries are managing geopolitical risk. Businesses and investors are increasingly looking for markets and supply chains that can withstand trade restrictions, political tensions and sudden disruptions.

For countries such as Thailand and others across Southeast Asia, this creates an opportunity to attract investment from multiple global partners without becoming overly dependent on any one of them. Investors are also increasingly looking toward Asia’s large domestic markets, manufacturing strength and growing middle class as sources of resilience amid global uncertainty.

Why It Matters

The US-China rivalry is changing the way countries think about trade, technology and investment.

Asia’s emerging strategy suggests that the next phase of globalisation may not be defined by choosing between Washington and Beijing. Instead, countries may increasingly seek strategic flexibility, building relationships with both sides while developing the capacity to withstand pressure from either.

For global businesses and investors, that could make Asia even more important—not simply as a manufacturing base, but as a region at the centre of the new global economic order.

More brief: https://www.theprojectherald.com/japan-550-billion-us-investment-pledge-financing-test/