Emboldened by economic strength and growing military power, China is emerging as a challenger to US dominance in the Pacific. But its promised peaceful rise has done little to convince regional powers that it will not use force to press longstanding territorial claims or attempt sea-denial operations in Asia's lucrative trade routes. Uncertainty about Beijing's intentions could thus beget a new, unpredictable arms race as states scramble to protect their interests. For the short term, however, governments are weighing up the question of how far their interests may be served by cooperating with China and trying to usher it into the role of a responsible global power, while hedging their bets with traditional alliances and military modernisation.