Sarcouncil Journal of Economics and Business Management

Abstract: Competition for influence/hegemony between the United States and China in the Indo-Pacific is, among others, in the context of controlling the trade market and the supply of natural resources/energy in the region. It is marked by a change in the United States strategy to move its military power center to the Asia Pacific region, with the excuse of increasing/reviving economic and military power. This study aims to examine the tensions in the Indo-Pacific that gave rise to the AUKUS trilateral pact and its impact on countries in the Indo-Pacific. The research method used in this research is document-based qualitative research or literature-based qualitative research. Indo-Pacific countries must realize that the worsening of Australia-China relations and increasing Chinese military activities in the South China Sea are signs. It signifies that the regional security reality is getting worse and requires real action through material balance, both economic and military. AUKUS is a manifestation of America’s multilateral approach to maintaining its superiority in the region and thwarting China’s ambition to become the most powerful country that overrides common interests in the region. So the formation of AUKUS can be seen as the embodiment of an international institution. It was created in response to the national interests of many countries in the region