US Senate approves defense bill with SEA allied support expansion amid China pressure

The United States Senate passed a new defense authorization bill that includes a $2 billion assistance package earmarked for Southeast Asian allied nations amid increasing Chinese assertiveness across the South China Sea theatres. Global geopolitics strategists warn this decision may trigger more direct contestation signalling from Beijing which is already reacting strongly to incremental alignment moves. Funds with exposure to US-Asia corridors are now re-evaluating geopolitical hedge adjusters as tail risk probability increases under two sided strategic constraints. Analysts expect higher risk premium embedded across supply sensitive defence industrial chain groups.