Taiwan and the South China Sea sit at the core of US foreign policy, given China’s expansive claims and rising regional tensions that carry potential global trade and security implications.

China conducts frequent military activities around Taiwan, including air incursions and large-scale exercises, while Taiwan counterpoints with its own regular drills, such as the Han Kuang exercises.

The South China Sea remains contested among China, the Philippines, Vietnam, and others, with an international arbitration ruling in 2016 that China rejects; confrontations at sea have grown, ranging from water cannons to lasers and aggressive maneuvers.

Experts frame four interrelated drivers—military geography, technology, trade, and international rules—as the backbone of the Indo-Pacific order, underscoring the need to deter escalation and manage competition.

Taiwan’s defense strategy shows preparation for coercion, blockade, or prolonged campaigns, with plans for drones, missiles, and indigenous submarines beyond a traditional invasion scenario.

International responses feature joint statements from the US, UK, and others affirming the arbitration ruling as a check on China’s expansive claims, alongside enduring U.S.-Philippines joint exercises like Balikatan.

Taiwan’s strategic location and semiconductor dominance, together with a rising defense budget for 2027, emphasize its central role in deterrence and potential conflict scenarios with China.

The Philippines and other Southeast Asian claimants are pivotal in the South China Sea dynamics, tying regional security to broader US alliance networks.

China’s construction activity in the Paracel Islands and its broader maritime build-out could extend surveillance and power projection, complicating operations by the US and its allies.