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US–Chinese strategic competition is a defining factor in world politics. The prevailing narrative on US–China relations predicts inevitable conflicts between these two giants, potentially leading to a self-fulfilling prophecy. While fully acknowledging the inherent dangers of potential wars or military conflicts between the two powers, this book shows that competition is not necessarily detrimental. By systematically examining US–China institutional balancing across security, economic and political domains, particularly in the aftermath of the 2008 global financial crisis, this book highlights three positive externalities or unintended consequences: the revitalisation of regional institutions to address emerging challenges, unexpected collaborations between great powers (the US and China) and regional actors, and the provision of public goods by both nations. The book argues that constructive and institutionalised competition between the US and China, if managed with strategic foresight and restraint, could inadvertently lead to positive outcomes – institutional peace – in the Asia-Pacific region.
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