United States remains the most powerful country in Asia as China's influence declines, study shows

The United States remains the pre-eminent force in Asia ahead of China, with Australia ranked sixth in a new power index.

Australian Prime Minister Anthony Albanese, (left), US President Joe Biden, Indian Prime Minister Narendra Modi are greeted by Japanese Prime Minister Fumio Kishida, (right), during his arrival to the Quad leaders summit at the prime minister's official residence in Tokyo. Source: AP / Evan Vucci/AP

Key Points

• The United States has been ranked the most powerful country in Asia in a new Lowy Institute report.
• China's power has been affected by isolation and its zero-COVID policy.
• Australia was ranked sixth in the Asia Power Index.

The United States is the most powerful country in Asia, after self-imposed isolation and zero-COVID policies weighed heavily on China's ranking in the Lowy Institute's Asia Power Index.

China’s score declined by 2.1 points relative to 2021, the largest drop in this edition of the analysis.

The Asia Power Index - which has been released annually for the past five years - assesses 26 nations against 133 indicators, with groupings including military and economic capabilities, defence networks and diplomatic and cultural influences.

In 2022, China was displaced by the United States as the most powerful country economically; largely due to a decline in China's global connectivity due to COVID-19 isolation.

The policies also contributed to a decline in China's cultural influence, but the country remains "more militarily powerful than ever", the report said.

According to the analysis, over the past half-decade, neither China nor the US has managed to cement superpower status.

"Washington is unlikely ever to re-establish a decisive lead. The age of uncontested US primacy in Asia is over," the report said.

"The biggest surprise over the course of five editions of the Index has been China’s inability to close or meaningfully narrow the gap to equal, let alone surpass, the United States in its comprehensive national power."

The report said it is unlikely China will ever reach the dominance the US had in years gone by.

COVID-19 lockdowns impacted China's power and dominance in Asia in 2022. Source: AAP / Costfoto/Sipa USA

"On current trends, China is now less likely to pull ahead of its rival in comprehensive power by the end of the decade," the report said.

"Even if it does in future decades, it appears highly unlikely China will ever be as dominant as the United States once was."

How powerful is Australia in Asia?

Australia's strong defence networks have helped make it the sixth most powerful nation in Asia, and contributed to an overall ranking of sixth.

In 2022, Australia improved in its diplomatic influence, which the report said reflected greater confidence in Prime Minister Anthony Albanese's Labor government, compared with the former Coalition government led by his predecessor Scott Morrison.

Japan, India and Russia ranked third, fourth and fifth respectively. South Korea was ranked seventh with Singapore, Indonesia and Thailand rounding out the top 10.

According to the report, India remains as "uneven contributor" to the regional balance of power, and is underperforming relative to its resources.

Its overall score has declined every year since 2018.

The US scored 81, followed by China (72.5), Japan (37), India (36), Russia (32) and Australia (31).

Papua New Guinea ranked last with a score of 3.3.