As Washington and Beijing compete for global influence, smaller nations are finding ways to leverage the rivalry for diplomatic, economic, and strategic gains
The US-China rivalry is often framed as a clash of superpowers. But beneath this great power competition, many smaller countries are quietly leveraging the moment to extract better trade deals, diversify diplomatic options, and boost national influence.
Here’s how they’re doing it — and what it means for the future global balance of power.
1. Using Great Power Competition to Win Bigger Trade Deals
For many small and mid-sized economies, the current US-China rivalry is an opportunity to negotiate better trade terms.
Countries such as Vietnam and the Philippines are prime examples. Both nations have seen US interest surge as Washington pushes to “de-risk” supply chains away from China.
At the same time, China is offering expanded market access to these same countries — especially for agriculture, electronics, and raw materials.
The result: these countries are able to pit the two giants against each other to boost exports and attract new investment.
How Turkey and the UAE Are Balancing Between the US and China: https://worlddiplomacyhub.com/wp-admin/post.php?post=175&action=edit
2. Securing Infrastructure Financing on Better Terms
The infrastructure race is another space where small nations are benefiting.
The US and its allies are promoting initiatives like the Blue Dot Network and the Partnership for Global Infrastructure and Investment (PGII) — positioned as transparent alternatives to China’s Belt & Road Initiative (BRI 2.0).
Countries such as Kenya, Indonesia, and Serbia are now using this competition to negotiate better financing terms. Deals are more transparent, include better debt restructuring clauses, and often incorporate environmental and governance safeguards — improvements driven by the need to balance offers from both powers.
3. Gaining Security Guarantees Without Choosing Sides
Many smaller nations are mastering the art of security balancing — securing military cooperation from the US while maintaining economic ties with China.
Vietnam is a notable example: the country hosts US naval visits and deepens defense cooperation with Washington, even as it pursues robust trade and investment ties with Beijing.
Similarly, Central Asian republics — such as Kazakhstan and Uzbekistan — are navigating between China’s Belt & Road security offers and new US security dialogues under evolving Indo-Pacific strategies.
This “dual engagement” allows them to improve defense capabilities without fully aligning with either camp.
How Global Markets Are Reacting to US-China Rivalry: https://worlddiplomacyhub.com/wp-admin/post.php?post=169&action=edit
4. Leveraging AI & Tech Transfers
In the realm of AI and emerging technologies, small countries are becoming savvy players.
China offers AI-driven surveillance systems, smart city tech, and digital infrastructure through BRI-related channels. Meanwhile, the US and its allies are promoting AI governance partnerships, data privacy frameworks, and tech standards cooperation.
Nations such as the UAE, Saudi Arabia, and Turkey are actively leveraging both sides:
- Investing in US AI ecosystems and cloud services
- Deploying Chinese hardware and AI platforms in local infrastructure
This strategy enables them to modernize tech sectors rapidly — without binding themselves to a single ecosystem.
5. Elevating Diplomatic Importance
In today’s multi-polar competition, even non-aligned countries are seeing their diplomatic relevance rise.
Indonesia, for example, has hosted major US-China dialogues and is positioning itself as a neutral convening power. Its role in G20 and other multilateral forums is steadily growing.
Meanwhile, the African Union has gained new prominence — recently elevated within the G20 — in part due to US-China competition for influence across the continent.
These nations are finding that neutrality and balanced diplomacy can now translate into greater global standing.
6. Using the Rivalry to Drive Regional Leadership
Some regional powers are leveraging US-China tensions to enhance their leadership roles.
Brazil, under President Lula, is working to assert independent leadership in South America — balancing ties with both China and the US while promoting regional integration.
South Africa is playing a pivotal role in BRICS expansion — positioning itself as a voice for Global South interests amid superpower rivalry.
Turkey continues to pursue an assertive “middle power” strategy — using its role in NATO, its ties to China’s infrastructure networks, and its ambitions in Eurasian diplomacy to maximize leverage.
The broader trend: smaller and mid-tier countries are no longer passive actors in global geopolitics. They are actively shaping alliances, driving deals, and steering regional agendas.
How the US-China Tensions Are Changing Latin America’s Trade Deals: https://worlddiplomacyhub.com/wp-admin/post.php?post=145&action=edit
Vietnam’s Strategy in the US-China Rivalry: https://worlddiplomacyhub.com/wp-admin/post.php?post=172&action=edit