The Dynamics of U.S.-China Rivalry: Fields of Competition and Counter Alliances in the Middle East and South Asia
ASHIQ E RASOOL .
I.R | Lecturer (BPS-18), AUST | Research on National Security and Hydro-Politics in South Asia | Graduate NDU, Islamabad, Pakistan | Social Science Researcher | Socio-Political Analyst.
Introduction
The global order is being redefined by an intensifying rivalry between the United States and China, impacting the economic, military, technological, and diplomatic spheres. This competition has reshaped geopolitics in regions like the Middle East and South Asia, which are increasingly pivotal in the global contest for power. Both regions serve as platforms for economic engagement, military strategies, and soft power projection. At the same time, nations within these regions leverage their positions to secure benefits, often aligning with multiple powers to maximize strategic gains.
This paper explores the key fields of competition between the U.S. and China and examines the formation of counter alliances in the Middle East and South Asia. It highlights how regional actors navigate the rivalry to bolster their autonomy while benefiting economically, politically, and strategically.
Economic Competition
The economic dimension of U.S.-China competition is highly pronounced in both the Middle East and South Asia. In the Middle East, China’s Belt and Road Initiative (BRI) has been a cornerstone of its engagement. Through large-scale infrastructure projects, Beijing has solidified its economic presence, becoming the region's largest trading partner. Chinese investments from 2005 to 2020 reached $197 billion, surpassing U.S. investments. Beijing’s success in brokering the 2023 Saudi-Iran rapprochement further underscores its growing economic and diplomatic clout.
In contrast, the United States leverages its historical ties and significant investments, including $75 billion between 2000 and 2019. The U.S. continues to focus on partnerships with energy-rich Gulf nations and the development of renewable energy alternatives in collaboration with allies such as Germany.
South Asia, similarly, is a stage for economic competition. China’s investments through the China-Pakistan Economic Corridor (CPEC) have not only bolstered its relationship with Pakistan but also increased its regional influence. The United States counters this through partnerships with India, focusing on fostering trade and technology collaborations that align with the Indo-Pacific Economic Framework.
Military Dynamics
Military competition in the Middle East reflects contrasting approaches. The United States maintains a dominant presence, with military bases, arms sales, and security agreements acting as pillars of its influence. This security umbrella ensures regional stability while safeguarding U.S. interests. Meanwhile, China adopts a subtler approach, deploying a “soft military presence” to protect its trade routes and economic investments in the region.
In South Asia, military dynamics are shaped by the U.S.-India partnership, bolstered by agreements such as the Logistics Exchange Memorandum of Agreement (LEMOA). The Quad alliance further strengthens India’s strategic capabilities in the Indo-Pacific, countering China’s growing naval power and defense ties with Pakistan.
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Technological Competition
The competition for technological dominance is another critical aspect of U.S.-China rivalry. In the Middle East, the deployment of 5G infrastructure by China’s Huawei contrasts with U.S.-led initiatives to offer secure alternatives. Both nations are also investing heavily in green energy technologies, with the U.S. collaborating with European allies to advance these initiatives.
In South Asia, technology is equally contested. China’s investments in telecommunications and infrastructure projects are extensive, while the U.S. seeks to support local innovation ecosystems, particularly in India. This dynamic highlights the strategic importance of technological leadership in shaping the global order.
Counter-Alliances in the Middle East
Middle Eastern nations are increasingly adopting multi-alignment strategies to navigate the U.S.-China rivalry. The inclusion of Saudi Arabia, the UAE, and Egypt in the BRICS bloc reflects a shift toward diversified partnerships. These nations leverage competition to secure investments and technological transfers while maintaining strategic autonomy. For instance, Saudi Arabia’s Vision 2030 integrates partnerships with both Chinese and Western firms, balancing economic priorities with political independence.
Counter-Alliances in South Asia
In South Asia, India emerges as a key player employing a nuanced balancing act. While deepening defense ties with the U.S., India also engages economically with China, recognizing the interdependence within Asia. Smaller nations like Bangladesh and Sri Lanka adopt hedging strategies, benefiting from Chinese infrastructure investments while maintaining defense relations with the U.S. and India.
Conclusion
The rivalry between the United States and China is about to transform the global order, with regions like the Middle East and South Asia playing pivotal roles. These regions exemplify how local actors leverage global competition to enhance their autonomy and secure diverse benefits. By adopting multi-alignment strategies, these nations ensure their relevance in a challenged unipolar and increasingly multipolar world.
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