China Builds Asian Economic Bloc Amid Naval Expansion, Regional Tensions

China is advancing a multifaceted strategy to expand its influence and counter U.S. dominance through economic, military, and asymmetric tactics. Economically, China is forging a new alliance with Southeast Asian and Gulf countries, aiming to strengthen trade and infrastructure cooperation among a bloc representing a quarter of the global population and economy, thereby creating a counterweight to rising U.S. protectionism. Militarily, China has intensified naval deployments near Taiwan, Japan, and key maritime regions, conducting live-fire drills to assert territorial claims and reinforce dominance in the first island chain, which has raised concerns among neighboring countries. Concurrently, China is developing a covert strategy to subdue Taiwan by targeting critical infrastructure such as power plants, ports, and communication hubs to cause systemic collapse without direct military confrontation, signaling a shift toward asymmetric warfare. This approach leverages Taiwan’s vulnerabilities, including heavy dependence on imported energy and limited stockpiles, to pressure the island toward capitulation with minimal cost. Underlying these efforts is China’s broader ambition, framed by President Xi Jinping, to establish a new global order surpassing the Westphalian system through economic initiatives like the Belt and Road Initiative and strategic partnerships with authoritarian regimes worldwide.