Intensification of Competition in the Technology and Space Domains
Dr. Ismail Bashri, in an interview with the Foreign Relations Strategic Council website, stated: “The second Trump administration, with a security-centric approach, has shifted competition with China from the trade domain to the strategic level, aiming to control the future of global power.” He added: “Artificial intelligence, advanced chips, and orbital space are the new fronts of the digital Cold War.”
He explained: “China has expanded the governmental and military applications of new technologies at an unprecedented pace, implementing projects such as ‘Smart Cities,’ ‘Digital Surveillance,’ and ‘Cognitive Defense’ within the framework of national security. In response, Washington is seeking to curb China’s progress by imposing export restrictions.”
According to Bashri, “In the field of chips, the U.S. has initiated massive domestic investments through the ‘CHIPS and Science Act’ and has requested Taiwanese, Japanese, and Korean companies to join the Western technology bloc. Beijing, through the ‘Made in China 2035’ plan and strengthening companies like the Semiconductor Manufacturing International Corporation (SMIC), is pursuing technological self-sufficiency.”
He added: “In Earth’s orbit, China is competing with the U.S. through LEO satellite projects and the BeiDou navigation system, and this competition has now extended to the construction of nuclear power plants on the lunar surface.”

Redefining the Military Balance in the Indo-Pacific
Bashri said: “The military challenge between Washington and Beijing is no longer confined solely to Taiwan but encompasses the entire Indo-Pacific region.” He added: “The U.S., by reviving quadrilateral alliances, expanding cooperation with Japan, Australia, and the Philippines, and deploying long-range weapons, is seeking to contain China maritimately.”
This analyst emphasized: “In response to this trend, China has reorganized its military, focusing on network-centric warfare, joint operations, and defense systems. The use of DF-26 and DF-21D anti-ship missiles demonstrates the enhancement of Beijing’s deterrence capability.”
He continued: “From China’s perspective, Taiwan is not merely a territorial issue but a symbol of territorial integrity and national prestige; whereas the U.S. views Taiwan as the primary bulwark for deterring China.”
Bashri noted: “The expansion of China’s naval presence in the Indian Ocean and bases such as in Djibouti, Sri Lanka, and Pakistan has led Washington to shift its military focus from Europe to Asia, signaling a transition from an Atlantic-centric order to an Indo-Pacific one.”
He explained: “U.S.-China competition is not solely military and is rooted in the structure of the political economy. The second Trump administration is pursuing a policy of containing China using economic tools.” He added: “Imposing heavy tariffs and restrictions on the export of sensitive technologies are part of Washington’s new strategy.”
Bashri said: “Decoupling has now become official U.S. policy, and Washington is striving to detach global supply chains from China. In response, Beijing has redefined the ‘Belt and Road’ initiative, focusing on digital domains, clean energy, and green technology.”
He clarified: “This trend has shaped two economic ecosystems: one centered on the U.S. and the other on China. The first system relies on financial transparency and Western standards, while the second relies on national sovereignty and state-led development. This divergence challenges the concept of globalization.”
He added, “To neutralize pressures in trade with Russia, Iran, and Asian countries, China is using local currencies. The BRICS Bank and the Asian Development Bank have been activated in this process.”
He said: “The economic competition between the two countries also affects the structure of international institutions. Washington is trying to reduce Beijing’s influence in global institutions, while China, by establishing institutions like the Asian Infrastructure Investment Bank, has laid the foundation for a new financial order.”

Managing Competition or Potential Confrontation
The East Asian affairs analyst noted: “Under current conditions, neither power has a real desire for direct war, but the lack of dialogue mechanisms increases the risk of unintended conflict.”
He added: “Technology sanctions and economic pressures have intensified mutual distrust and disrupted global cooperation in the fields of energy and climate.”
Bashri emphasized: “If Washington and Beijing cannot find a framework for managing competition, the international system will split into two technological and economic poles.”
He concluded by saying, “U.S.-China competition is now a manifest reality in the global system. The main question is whether this competition will be manageable or whether the world is moving towards an irreversible confrontation?”