A grand national flag-raising ceremony is held on Jan 1, 2023 at Tian’anmen Square, Beijing, as part of New Year’s Day celebrations. (PHOTO / XINHUA)

China remains the leading economic force in Asia while the United States is seen as the region’s dominant military power, according to an annual power index published by an Australian think tank.

The Asia Power Index for 2023 shows little change from the previous year’s report, with the United States still seen as the region’s dominant military power and China the leading economic force.

Produced by the Lowy Institute, a Sydney-based foreign policy think tank, the Asia Power Index for 2023 shows little change from the previous year with the US, China, Japan, India and Russia occupying the top five spots in 2022.

Most countries saw a decline in their overall scores due to the continued impact of the COVID-19 pandemic.

Professor James Laurenceson, director of the Australia-China Relations Institute at the University of Technology Sydney, said the findings presented “no real surprises in the power balance”.

Produced by the Lowy Institute, a Sydney-based foreign policy think tank, the Asia Power Index for 2023 shows little change from the previous year with the US, China, Japan, India and Russia occupying the top five spots in 2022

All countries surveyed were impacted by COVID, some more than others, he told China Daily.

But “we might see a change in the numbers this year”, he said, pointing to China’s optimized COVID control measures.

The Asia Power Index measures national resources and international influence of 26 countries to determine their relative power in the “Indo-Pacific region”.

The index evaluates the balance of power in Asia through 133 indicators across eight thematic measures, including military capability, economic capability, and diplomatic and cultural influence.

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Project lead for the index, Susannah Patton, said China’s diplomatic influence in Asia narrowly eclipsed that of the United States in 2022, partly because Beijing had “wooed most countries across the region more assiduously than the Biden administration had”.

“We heard a lot about the economic impact of China’s border closures, but this really showed us the strategic impact of the border closures,” she told the Australian Broadcasting Corporation on Feb 6.

She said China still remains the region’s largest trading partner.

This file photo shows the Longtan Container Terminal of Nanjing Port in Nanjing, Jiangsu province, May 6, 2022. (PHOTO / XINHUA)

The Asia Power Index evaluates the balance of power in Asia through 133 indicators across eight thematic measures, including military capability, economic capability, and diplomatic and cultural influence

Professor James Chin, professor of Asian Studies at the University of Tasmania, said China will be a key player in the global economic recovery in the post-pandemic period.

He said that will be especially true for the economies of the Association of Southeast Asian Nations and the Indian subcontinent.

“China will be a key player in helping these countries recover in terms of trade,” he told China Daily.

“I think we will start to see more Chinese investment going overseas now that COVID is over, along with new foreign direct investment to help countries restart their economies.”

He said that in terms of military power, China has no new position.

“China’s position has always been that the US should not interfere in its backyard, such as the South China Sea and Taiwan Straits.

“But the question is not whether these two powers can coexist. The better question should be what will happen if they don’t (coexist),” he said.

This undated file photo shows the national flags of China (left) and the United States. (PHOTO / XINHUA)

On the outlook for the year ahead, project lead for the index, Susannah Patton, said China’s rapid reopening and diplomatic outreach to countries such as Australia could shape the next set of rankings, while the US will need to work to solidify its alliances with the Philippines and South Korea

He added that is why people worry about accidental conflict in the South China Sea or “over the Taiwan Straits issue”.

According to the index, China’s rankings on cultural influence and economic capability fell the most, due to Beijing shutting off its citizens and businesses from the world for much of the year. One area where China did see improvement was in military capability, closing the gap with the US from 27 points in 2018 to 23 points in 2022.

Patton said while most countries had seen a dip in their rankings in 2022, driven partly by the aftershocks of the COVID-19 pandemic, Australia and Indonesia bucked the trend in the top 10 powers in the Asia-Pacific region.

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On the outlook for the year ahead, Patton said China’s rapid reopening and diplomatic outreach to countries such as Australia could shape the next set of rankings, while the US will need to work to solidify its alliances with the Philippines and South Korea.

“China is going to be a much more formidable competitor to the United States over the next year,” she told the ABC.

She said the US retained its top spot because it remains stronger than China across several other measures – including military capability, defense networks and cultural influence.

karlwilson@chinadailyapac.com