Abstract: Current geopolitical dynamics in East Asia is generated by the US rebalancing and China’s counterbalancing. The US rebalancing has so far ended in an encircling of China, whereas China counteracts to extend into the seas and the lands as typified by the Belt and Road Initiative and assertive activities in the South China Sea. China under Xi Jinping’s leadership has set up a new guideline of ‘great power foreign policy’ (大国外交) to realize Xi Jinping’s ambitious vision of ‘China dream’. As delivered in the ‘New Model of Great Power Relations’, China under Xi Jinping’s leadership seeks clearly for ‘regional dominance’, while for ‘global balance’ with the USA. With rebalancing, however, the USA seeks to restore power balance in East Asia by adding up to military and economic resources already deployed there. By doing so, the USA aims to achieve its strategic goal of ‘regional balance’, while maintaining ‘global dominance’. These two distinct strategic goals, regional dominance and global balance for China and regional balance and global dominance for the USA, interact to result in currently transforming geopolitics in East Asia.
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