‘Peer powers’: China closes capacity and influence gap with US in Asia, annual index finds

China and the US are “peer powers” in Asia, as Beijing closes the gap in the region with Washington and records the highest diplomatic influence score among countries measured, an Australian think tank’s latest annual gauge indicates.

According to the 2025 edition of the Sydney-based Lowy Institute’s Asia Power Index, the United States remains the most powerful nation in the region. However, its comprehensive power score fell to 80.5 out of 100 – the lowest since the rankings began in 2018.

Meanwhile, China recorded “the highest-ever diplomatic influence score of any country”, according to the institute’s key findings report.

For the first time since 2018, Beijing also ranked at the top this year according to Lowy’s regional and global leadership indicators under the diplomatic influence measure, which assess the effectiveness of political leaders in advancing their country’s diplomatic interests in Asia and globally.