The Indo-Pacific is becoming a focal point for strategic competition between the US and China, with growing emphasis on military posture, technology and “grey-zone” activity, according to a new analysis report from UK-based Heligan Group.
The report, titled State of the Nation: The Indo-Pacific, argues that governments and industry will need to better understand shifts in regional power dynamics and the capabilities shaping them. Heligan Group’s Head of Research Ben Addley said the region involved “a complex web of overlapping interests and strategic manoeuvring”, adding that “distributed, networked and survivable capabilities will be essential” for operating across domains.
The media alert points to recent reporting of new installations near Antelope Reef in the South China Sea as an indicator of intensifying strategic competition. It also links the security environment to increased use of espionage and actions below the threshold of armed conflict.
Addley said China has invested “£200bn per annum” in its military, including “missiles, submarines, aircraft carriers, artificial islands and overseas logistics bases”, and is also focusing on frontier technologies. The alert cites the International Energy Agency’s estimate that China controls 61% of rare earths mining and 92% of global processing, describing export bans as a lever affecting electronics manufacturing and defence supply chains.
The US response, according to the alert, includes reinforcing bilateral treaties with Indo-Pacific states such as the Philippines and continued cooperation with Australia through the AUKUS programme. The alert also claims the US has imposed its highest average effective tariff on Chinese imports since the 1930s.
Beyond military and economic measures, the report links regional competition to national resilience and cyber security. Addley said “current defences are inadequate for the growing sophistication of state-sponsored cyberattacks” and warned the UK’s ability to protect and respond “will inevitably be tested”.
The analysis also highlights intelligence, surveillance and reconnaissance (ISR) as a priority area, including underwater sensing and real-time data transmission for tracking assets and coordinating forces in a maritime environment.
