Security and the economy are the two key areas of global governance. Zero-sum game thinking on these issues should be avoided at all costs.

The Philippines is often portrayed as an American ally on the verge of defecting to Eastern powers, with Duterte firmly overseeing this strategic shift. Yet, a closer look reveals that the tough-talking Filipino leader doesn’t have the requisite power to unilaterally reshape his country’s foreign policy, nor is he interested in fully severing ties with the Philippines’ century-old ally, America.

Could the arbitration award of 12 July 2016 have unexpectedly opened a cycle of appeasement between China and South-East Asian countries in the South China Sea? It is difficult to conclusively answer this question, since behind these changes are uncertainties and continuities likely to undermine at any moment the progress made.

China and ASEAN countries should focus on implementing a dual-track approach and formulating a code of conduct for the sea, as well as establish mechanisms for maritime situations and to build mutual trust. If the US and China are truly committed to a new type of big-country relationship, they will find facilitating this approach to be in their mutual interest.

However histrionic the demagogic oratory of President Trump has been, his strategy to revitalize American manufacturing will be better served by exporting more to China, not decreasing Chinese imports. China’s gigantic market has thus become the golden apple of discord in an accelerating geo-economic competition between the United States and Germany, which already enjoys significant production networks within the Middle Kingdom. Yet unlike the days of the Boxer Revolution and the alliance of eight Western nations, China can this time choose her major commercial partners.

Without a question, it is still too early to predict the exact trajectory of Trump’s actual policy in office, given his penchant for policy equivocation and tendency for self-contradiction. Deals like the TTP now hang up in the air. There are also opportunities for China in the new administration. Doubts over Trump’s temperament, judgment, experience, and commitment to the global order could encourage a growing number of Asian nations to reconsider their relations with Washington in favor of Beijing. The Trump administration faces an uphill battle to reassure allies in the region that America will continue to preserve and provide public international goods in the region, stand strong with its allies, and deepen its economic engagement with Asia.

Philippine president Rodrigo Duterte has been raising hackles across the Asia-Pacific since his inauguration in June. In his latest broadside directed at the United States, Duterte once again asserted that he wanted all foreign troops out of the Philippines and that he would eventually nix the Enhanced Defense Cooperation Agreement (EDCA). Although such a move does not appear to be imminent, it is worth considering its potential implications for the region.

Under Duterte’s administration, the Philippines are moving toward major policy shifts, particularly in regards to U.S. and China relations. China is an emerging outbound investor with a demonstrated financial, technological, and engineering capacity to accomplish major infrastructure projects, such as railways, which can have a transformative impact on Philippine economic development. The U.S. has become a quieter ally in the region, and other regional states have long been diversifying both their economic and security partners to spread risk and to avoid getting entangled in big power tussles. Duterte is following these initiatives now, as well.

As Chinese leaders reiterate, the Pacific is wide enough to support the development needs of both China and the U.S. China’s huge development has never relied on challenging American leadership in the international system, and the Chinese achievements have contributed to global economy and prosperity. Eager to work with the U.S. for peace and development, China sees no reason for the American game in China’s periphery.

As tensions escalate, the players will eventually go against US national interests, with potential for conflict and instability. The only viable path to peace and security is deepening strategic cooperation and pursuing common security across the region.