The Asia-Pacific region blusters over half of the globe’s population and as residue of major powers centre including the main arteries of international economies like India, China and Australia etc. Due to its dynamism, there are plausible reasons that Asia-Pacific would emanate as the mother region in the coming days. Historically, with the concurrence of US, Japan and Australia, the concept of Asia-Pacific emerged which has legalized the US’ involvement in the issues related to East Asia. In plain term, Asia-Pacific region invokes Asia, Australia and West Coast of North America for its potentials to crop up as a galvanic force. Strategically, covering 22 percent of world land, Asia-Pacific is one of the important and eloquent regions that comprises three well developed Economic Powers of the World i.e. China, Japan and US. In addition, the region encompasses world''s six largest ports and six vital Sea Lanes of Communications i.e. straits of Makassar, South China Sea, Lombok, Malacca, Ombai - Wetar and Sunda. Due to the US’ involvement in Afghanistan and Iraq, Chinese managed to fill the vacuum and improve its economic ties with its Southeast Asian neighbours. China has the economic and technological influence all over the world with approximately 6 % average annual growth rate and an anticipation of taking over the economies of Japan and US by 2016 and 2039 respectively. However, rise of China coupled with its outreach to the global markets poses a consistent challenge to the US’ dominance hence emerges as a key challenge of 21st century to US’ interests at global and regional levels. As a result of which, US’ policy has been re-patronized towards Asia-Pacific for maintaining and expanding security network, strengthening the economic relations with her new and old allies and concurrently focuses on containment of China. In addition, US’ rebalancing has been claimed to strengthen bilateral security alliances with its allies, expanding trade and investment, promotion of democracy and human rights but China views the pivot as containment strategy and provocation act. Asia-pivot, a major shift in American policy shows that America has already started to calculate its options for dominating the region, both politically and militarily. US has been increasing its military components to reach to 60 % of total force ratio in Asia-Pacific region by 2020. In addition, US has been giving military assistances to Japan, Vietnam, Philippines etc in support of their territorial disputes against China. Amidst these developments, US-China engagement in Asia-Pacific and subsequent power transition have surfaced complications for regional states relations. Keeping in view the likely power transition between China and US, the difference in the Sino-US power potentials shall persist for coming 30 years but it will be reduced to some extent however, conflict cannot be completely ruled out as and when China attains power parity with the US. The rise of China was also examined in detail, providing an overview of how China’s role evolved in this regard and how the international community responded to this phenomenon. The perceptions of Sino-US relations are grounded in the intent and subjective understandings of each other’s interests and compulsions. These perceptions can easily determine how best the two states interpret each other’s actions in the wake of China’s rise and US Rebalancing of Asia-Pacific. In wholesome Sino-US cooperation in power transition and maintenance of friendly relations is the only option because why both the states should afford to engage themselves in conflict. In addition to adding new contribution to the existing body of literature, this research will help the readers to attain an understanding of the major issues of contention and convergence between China and US in the region. The contribution will be of significance nature in creating a framework within which Chinese and American regional policies can be understood and may serve as reference for policy makers and students of international politics.
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