Indo-Pacific nations are racing to adapt to a world in which the United States has become fundamentally unpredictable. The 2026 Oksenberg Conference, hosted by the Shorenstein Asia-Pacific Research Center (APARC), gathered scholars and foreign service veterans at Stanford University to assess how regional stakeholders are confronting what Canada's Prime Minister Mark Carney had famously named "a rupture, not a transition" in the post-World War II order. The conference took place as Carney was in the midst of an Indo-Pacific trip, visiting Australia, India, and Japan to forge "middle power" trade alliances, and as the United States joined Israel in a war against Iran.

“For Indo-Pacific countries, the question is no longer just how to balance between Washington and Beijing,” said APARC Director Kiyoteru Tsutsui in his welcome remarks, “but how to understand and respond to the emergence of a multipolar world in which the United States is less predictable, less committed to multilateral frameworks, less invested in alliance maintenance, and more willing to pursue narrowly defined national interests at the expense of broader international stability.”

The panelists agreed that, while the U.S. retreat from the eight-decade-old international order it had previously championed creates multiple opportunities for China, Beijing is not naturally filling the vacuum, and regional powers are not pivoting toward it but instead scrambling to diversify security and economic partnerships. The consensus is that the international system is moving toward multipolarity and the world toward an increasingly unstable period, and no one knows yet what will replace the disintegrating post-WWII order.

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China Sees Opportunity in Multipolarity

To commemorate the legacy of the late Michel Oksenberg, a renowned scholar of contemporary China and a pioneer of U.S.-Asia engagement, the Oksenberg Conference, an annual tradition sponsored by APARC and led by the center’s China Program, gathers individuals who have advanced U.S.-Asia dialogue to examine pressing issues affecting China, U.S.-China relations, and broader U.S. Asia policy.

At this year’s convening, the first panel, moderated by Shorenstein APARC Fellow Thomas Fingar, focused on how China perceives, interprets, and responds to the new vulnerabilities and opportunities in the international system.

Speaking via video link from Beijing, Da Wei, a professor in the Department of International Relations at Tsinghua University and the director of its Center for International Security and Strategy, said China views the current moment as neither ideal nor catastrophic but better than recent alternatives.

China has experienced three scenarios, Da explained. First, from the 1990s through the Obama era, China benefited greatly from the U.S.-led liberal order, but was increasingly criticized by the West. Second, during Trump's first term and the Biden administration, while facing mounting pressure of decoupling in a bipolar system, China was forced into a camp with Russia, which Da characterized as Beijing’s “worst scenario.” Now, under Trump's second term, the shift toward multipolarity has redirected pressure away from China and onto multilateral institutions and U.S. allies – "the least bad option" from Beijing’s perspective.

Da argued that “culturally, China has a very low appetite for global governance or leadership.” China sees itself primarily as a regional power, he said. Rather than filling the vacuum left by the U.S. withdrawal from international institutions, "we want to be powerful and respected in the region. I don't think China has a very big appetite for leadership in faraway regions, except for economic interests." He contrasted this “Emperor's perspective,” demonstrated by China’s foreign policy, with the U.S. “boss perspective.”

Susan Shirk, a research professor at the University of California, San Diego’s School of Global Policy and Strategy and director emeritus of its 21st Century China Center, noted that China's response to Trump's trade war has been robust, muscular, but disciplined. "The Xi Jinping administration was operating in a more disciplined manner than it had previously," she said, contrasting this approach with what she called Xi's "rash reactions” to Japan and failure to engage Taiwan diplomatically.

Shirk stated that, while Trump's alienation of U.S. allies through extreme tariffs and military interventions has created clear opportunities for China to expand its influence and further divide Washington from Europe and Asian partners, Beijing has only modestly exploited these openings.

She emphasized that Xi's support for Russia in its war against Ukraine represents "self-defeating overreach" that undermines China's ability to improve relations with Europe. "Russia represents an existential threat to Europe," she said. "Xi Jinping really doesn't grasp how important this is."

Mark Lambert, a recently retired U.S. State Department official who served as China coordinator and deputy assistant secretary in the Bureau of East Asia and Pacific Affairs, contrasted the Biden administration's China strategy with the current U.S. policy vacuum.

The Biden approach, he explained, was rooted in U.S. relations with five Asian treaty allies plus NATO and positioned China as the only country with the means and capabilities to reshape the post-World War II order. It required "all hands on deck" to address this challenge through what U.S. officials called a "lattice work of relations": the Quad involving India, AUKUS with Australia, the Camp David summit between South Korea and Japan, and strengthened linkages between NATO allies and East Asian partners. China's support for Russia's invasion of Ukraine unified Europeans in understanding the China challenge in ways never seen before. The administration also successfully reframed Taiwan's importance, emphasizing that Taiwan's chip dominance was vital to global prosperity.

Today, Lambert argued, the United States either has no China strategy or “one so classified that neither our allies nor our practitioners know what it is.” On security, trade, technology, and international cooperation, the United States has given China “fantastic opportunities,” he noted.

Allies’ Transactional Coping Strategies

The second panel, moderated by Laura Stone, a retired U.S. ambassador and APARC's inaugural China Policy Fellow, turned to other regional states – South Korea, Japan, Russia, and India – and how they read the geopolitical landscape and devise strategies to shape the regional order.

Victor Cha, the D.S. Song-KF Chair and professor of government at Georgetown University and president of the Geopolitics and Foreign Policy Department at the Center for Strategic and International Studies (CSIS), noted that "every U.S. ally around the world is looking at a Plan B," pointing out that, in the first year of the second Trump administration, allies were not acting on these plans, but that "we’re now at a threshold where many of them are executing their Plan B's."

Cha identified seven types of behavior that U.S. partners have adopted when dealing with the Trump administration. These are drawn from a recent CSIS project on ally and partner responses to the paradigm shift in U.S. foreign policy. First is prioritizing face-to-face meetings with Trump himself, "because there's a recognition that the policy process in the United States is broken,” Cha said, “and that policy making is not being informed, as it traditionally has been, by foreign policy professionals. It's all happening at the leader level."

Other strategies include minimizing risk to avoid what Cha called "the Zelensky moment" – the public humiliation Ukraine's president suffered in the Oval Office in February 2025 – and preparing "trophy deliverables," such as South Korea's promise to buy Boeing airplanes and Japan's commitment to purchase Ford trucks.

“The America First policies have effectively put the custodial burden of maintaining the alliance on the partner,” Cha said. “Whether it's Japan, Korea, Taiwan, the Philippines, or whoever it might be, the burden traditionally has been on the United States, but now it's on the partner. They're the ones who have to try to maintain this relationship. So it's about minimizing risk.” 

South Korea's recent summit with Trump yielded a $350 billion investment package, yet soon after, U.S. immigration authorities raided a Hyundai facility, and Trump threatened 25% tariffs on Korea.

"Why take all this abuse?" Cha asked. His answer: South Korea and Japan see no alternative to the United States on security, and they secured previous concessions in areas such as nuclear submarines, ship building, and enrichment and reprocessing of spent nuclear fuel, which they do not want to renegotiate. 

One positive outcome, Cha pointed out, has been the unexpectedly warm bilateral relationship between Japan and Korea. Despite having leaders who would normally clash – a far-right conservative in Japan and a progressive in South Korea – the uncertain geopolitical environment has brought the two countries together.

He predicted China would eventually use economic coercion against South Korea over the U.S.-Korea nuclear submarine agreement, just as it did during the 2016-17 THAAD dispute and is currently doing to Japan. "It's not happening now because I don't think China wants bad relations with Japan and Korea at the same time, but it's coming," he said, adding that this development will likely push South Korea closer to the United States and Japan.

Japan Reconsiders Alliance Dependence as Its "Too Big to Fail" Status Proves No Shield

Katherine Monahan, a 2025-26 visiting scholar and Japan Program Fellow at APARC and a foreign service officer with the U.S. Department of State, said Japan's relationship with the United States is "too big to fail," but that has not prevented serious strain between the two allies.

Having served in Tokyo as deputy chief of mission at the U.S. Embassy in Japan until April 2025, Monahan shared that, when Trump's Liberation Day tariffs hit Japan with a 25% rate, the Japanese could not believe that was the figure next to their name, while other allies were at 20% and 15%. They wondered, “Don't we have any special relationship at all?”

Monahan called attention to a recent Foreign Affairs article by Masataka Okano, Japan's former national security advisor, in which he argues that Japan needs to take strategic autonomy more seriously. When made by a former Japanese official, such a statement represents a significant shift in the nation’s mindset, she said. 

Japan is also reconsidering previously used language around "de-risking" from China in favor of diversifying trade with multiple partners, including China, Canada, and Europe. This shift is happening on the backdrop of the current war with Iran, as 90% of Japanese oil comes through the Strait of Hormuz. “Japan has to start balancing sources and supply chains,” Monahan argued.

Russia Exploits American Unreliability

Russia expert Kathryn Stoner, the Satre Family Senior Fellow at Stanford’s Freeman Spogli Institute for International Studies, said America’s unpredictability under Trump represents pure opportunity for Vladimir Putin.

"Putin knows Trump. He gets him," Stoner said. "They have a not-completely dissimilar worldview." Trump's red carpet welcome for Putin at last year's Alaska summit, despite the Russian leader's indictment by the International Criminal Court for war crimes, sent a powerful message, Stoner asserted. So did Trump's lack of concern for democratic values and his criticism of U.S. allies.

She reminded the audience that Putin has been in power for 26 years and has watched multiple U.S. presidents come and go, adapting successfully to each. Putin wants multipolarity, she said, and Trump’s actions have emboldened him. Putin’s goal is to “reclaim Imperial Russia as a global power and restore what he views as its proper sphere of influence,” extending through Ukraine and Belarus into Poland, up to German borders in the west and to the south, through Moldova, Serbia and Bulgaria, to the Black Sea in the east, all the way to the Kamchatka Peninsula. 

According to Stoner, the Russia-China relationship is significantly more durable than many believe. The relationship between the two powers extends beyond oil sales to investment, defense coordination, and sophisticated military exercises. “It kind of doesn't matter whether there's love lost or not. There's an opportunity to be gained on both sides."

"Russia's economy is actually not on the verge of collapse," Stoner added. "It has completely retooled toward the military."

India Feels Betrayed

Emily Tallo, a postdoctoral fellow at Stanford’s Center for International Security and Cooperation, who studies how political elites structure foreign policy debates in democratic countries, especially in India, explained that New Delhi felt especially betrayed by Trump's foreign policy pivot.

The first Trump administration had centered India as a key partner against China. In May 2025, however, when an India-Pakistan conflict flared up, Trump claimed credit for brokering peace, but India took issue with his threat of trade measures to bring an end to the conflict. He then hosted Pakistan's army chief at the White House and signed deals with Islamabad. "This was a twist of the knife for India," Tallo said.

Trump also imposed 50% tariffs on India, including a penalty for buying Russian crude oil, which was not applied to China, and backed out of a QUAD summit in New Delhi.

India now views China as its primary security threat, and the recent India-Pakistan crisis, in which China supplied all of Pakistan's weapon systems and possibly intelligence, made New Delhi’s two-front threat fears a reality. "India is really sensitive to any hints of U.S. retreat in the Indo-Pacific, and any acceptance of Chinese Hegemony in the region," according to Tallo.

She concluded that, like other regional powers, India is committed to preserving the U.S. partnership but is diversifying and seeking a “Plan B.” It finalized free trade agreements with the European Union and the United Kingdom, agreed to purchase French Dassault Rafale jets, and conducted a pragmatic reset with China, citing U.S. unreliability as cover to stabilize a difficult bilateral relationship.

“India wants to be a regional power aligned with but not allied with the United States [...] They want to be considered as the United States’ main partner in Asia and a major counterbalance to China.”

In January 2022, protests erupted across India after irregularities in the Railway Recruitment Board examination process left thousands of candidates uncertain about their futures. For many young people, the coveted and competitive entrance examinations remain a pathway to stable employment and social mobility. The 2022 protests underscored the political and social weight carried by test-based selection.

For Isabel Salovaara, a Ph.D. candidate in anthropology and a 2025-26 APARC predoctoral fellow, such moments reveal how examinations function as powerful governing mechanisms. Her research examines the vast ecosystem of private tutoring and coaching that has developed around competitive exams in India, asking how these industries shape youth aspirations, reproduce or mitigate inequality, and spur distinctive relationships to the state.

Salovaara identifies two core contributions of her project. “First, at an empirical level, I show how India’s coaching industry turns the individualizing, exclusionary mechanism of competitive examinations into an opportunity for connection – both to peers and to the state.” Although exams rank candidates against one another, exam preparation is a deeply social process. Aspirants share hostels, attend group classes, and form study networks, creating a sense of community within competition.

“At a theoretical level, I offer the figure of the ‘aspirant’ – the common label for these exam-takers in India – as a way of rethinking aspiration as a circular rather than linear process,” Salovaara says. Aspirants often make multiple “attempts,” apply for several different jobs, and sometimes continue preparing for higher-level exams even after securing a government post. “By illustrating this cyclical temporality, I argue that aspiration is less a one-time projection toward a fixed future than an ongoing, socially embedded practice of recalibrating possibilities.”

Salovaara’s interest in India’s exam culture began while teaching English at a community center in Delhi. She noticed that students preparing for competitive tests were falling behind in schoolwork; regular curricula rarely aligned with exam demands, encouraging reliance on private tutoring. Her research expanded from early fieldwork in coaching hubs such as Kota to government job preparation in Bihar.

High-stakes examinations in India determine entry into medical and engineering colleges, civil services, public sector banks, railways, and other state institutions. They operate on principles of relative merit: success depends not simply on passing, but on ranking above others. Merit is competitive and relational, intensifying pressure and uncertainty. In many urban centers, entire neighborhoods are organized around coaching institutes, with hostels, mess halls, internet cafés, and specialized academies serving aspirants seeking to “crack” exams.

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From Tutoring to Coaching Economies

In Bihar, where industrial development is limited and private-sector jobs are scarce, government employment at nearly any level is highly prized for its stability and prestige. Salovaara traces the transformation of small-scale private tuitions into large commercial coaching enterprises that promise strategic mastery of overlapping “general studies” syllabi relevant to multiple government exams. 

Despite the growth of the coaching industry, it remains a weakly regulated sector. One of the greatest challenges in studying it, Salovaara explains, is the lack of reliable data. She would like to document how many people participate in coaching and the demographic composition of student populations, including gender and caste. Yet coaching centers are often secretive about their records, and there is no centralized system of data collection comparable to state-run schools. Rigorous large-scale quantification is therefore nearly impossible.

Given these constraints, Salovaara’s work is primarily ethnographic. She has enrolled in online coaching courses, lived in student hostels, and trained in police recruitment academies. This approach reveals how coaching centers generate dense local economies: billboards advertise success rates, retired military personnel teach physical training, bureaucrats conduct mock interviews, and government scholarships sometimes subsidize private coaching. The boundaries between state and market become blurred in the tense ecosystem of exam preparation.

Education, Transformative Aspiration, and Inequality

A central question in Salovaara’s research concerns how exam preparation shapes individual relationships to the state. Coaching fosters powerful forms of self-identification. Aspirants imagine themselves as police officers, bureaucrats, or civil servants; uniforms symbolize dignity, belonging, and familial pride. For many, a government job represents not only economic security but moral recognition.

Young women, in particular, articulate transformative aspirations. Some describe their future positions as a way to elevate their families’ status or reshape gendered expectations. Exam success becomes a vehicle for reimagining inheritance and intergenerational recognition.

At the same time, the state appears as examiner and gatekeeper. It defines syllabi, sets evaluation criteria, and determines advancement. It is both a destination and an obstacle. When fairness is called into question, as in the 2022 railway protests, identification can quickly shift to anger. Examinations thus generate both attachment to and critique of state authority.

Salovaara’s research highlights how coaching spans socioeconomic categories, but sustained exam preparation requires significant financial investment. Families with greater resources can afford longer study periods and higher-quality instruction. For those with limited means, coaching represents a high-risk attempt to convert economic capital into secure employment. Aspirants may spend years in precarious living conditions with no guarantee of success. Many describe the industry as extractive, even as they remain committed to its promise of mobility.

Intellectual Community and Ongoing Questions

At APARC, Salovaara has been able to focus on writing while engaging in comparative conversations about education across the Asia-Pacific region. She describes enriching informal exchanges and discussions with postdoctoral fellows, particularly Taiwan Postdoctoral Fellow Ruo-Fan Liu, among others, about education and ethnographic research during the COVID pandemic.

After completing her Ph.D. this spring, Salovaara hopes to teach and continue her research. She is preparing a book manuscript, Exam Raj, which examines selection examinations as a mode of governance. Future projects include research on women in the police and on how alcohol prohibition policies contribute to the formation of female electoral constituencies in India.

She urges young scholars to look beyond their immediate field site and practice articulating the broader stakes of their work. Doing so, she says, helps clarify not only one’s argument, but also its significance.

Key Takeaways: Aspirations, Examinations, and the Indian State
 

• India’s coaching centers transform competitive exams into social worlds of connection as well as exclusion.
• Large-scale data collection on exam preparation is difficult to gather, elevating the importance of ethnography.
• Exam preparation produces both identification with and antagonism toward the Indian state.
• Selection examinations function as a central mode of contemporary governance.

The deliberations yielded clear priorities for building trust through safeguards during this early phase of agentic development and adoption. Currently, participants favor AI agents for low-risk tasks, while expressing caution about high-stakes applications in medical or financial domains. In deliberation, participants indicated an openness to these higher-risk applications if provided safeguards around privacy or user control, such as requiring approval before finalizing an action.

The Forum also revealed support for culturally adaptive agents, with a preference for asking users about norms rather than making assumptions. Lastly, the discussions underscored the need for better public understanding of AI agents and their capabilities, pointing to the importance of transparency and education in fostering trust in these emerging technologies.

"The perspectives coming out of these initial deliberations underscore the importance of our key focus areas at Cohere: security, privacy, and safeguards,” said Joelle Pineau, Chief AI Officer at Cohere. “We look forward to continuing our work alongside other leaders to strengthen industry standards for this technology, particularly for enterprise agentic AI that works with sensitive data."

This pioneering forum sets a new standard for public participation in AI development. By seeking feedback directly from the public, combining expert knowledge, meaningful public dialogue, and cross-industry commitment, the Industry Wide Forum provides a key mechanism for ensuring that AI innovation is aligned with public values and expectations.

“Technology better serves people when it's grounded in their feedback and expectations,” said Rob Sherman, Meta’s Vice President, AI Policy & Deputy Chief Privacy Officer.  “This Forum reinforces how companies and researchers can collaborate to make sure AI agents are built to be responsive to the diverse needs of people who use them – not just at one company, but across the industry.”

Through Stanford’s established methodology and their facilitation of industry partners, the Industry-Wide Forum provides the public with the opportunity to engage deeply with complex technological issues and for AI companies to benefit from considered public perspectives in developing products that are responsive to public opinion. We hope this is the first step towards more collaboration among industry, academia, and the public to shape the future of AI in ways that benefit everyone.

“We have more industry partners joining our next forum later this year”, says Alice Siu, Associate Director of Stanford's Deliberative Democracy Lab. “The 2026 Industry-Wide Forum expands our discussion scope and further deepens our understanding of public attitudes towards AI agents. These deliberations will help ensure AI development remains aligned with societal values and expectations.”

Motivation & Overview

India’s services sector is internationally renowned and has helped propel the country’s economic growth. Indeed, in recent years, a majority of the value added to India’s GDP has been concentrated in services. Especially noteworthy are India’s software and computing services, which include large multinational conglomerates like Infosys and Tata Communications Services. 

Yet as Indian software has flourished, the growth of its computer hardware and manufacturing has been sluggish. Tellingly, India is still a net importer of hardware and other electronics. At first glance, this divergence is puzzling because both the software and hardware sectors should have benefited from India’s educated labor pool and infrastructure. How can these different sectoral outcomes be explained?
 

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Fig. 1: Electronics production value compared to software and software service revenues.
 

In “Comparing Advantages in India’s Computer Hardware and Software Sectors,” Dinsha Mistree and Rehana Mohammed offer an explanation in terms of state capacity to meet the different functional needs of each sector. Their account of India’s computing history emphasizes the inability of various state ministries and agencies to agree on policies that would benefit the hardware sector, such as tariffs. Meanwhile, cumbersome rulemaking procedures inherited from British colonialism impeded the state’s flexibility. Although this disadvantaged India’s hardware sector, its software sector needed comparatively less from the state, building instead on international networks and the efforts of individual agencies.

The authors provide a historically and theoretically rich account of the political forces shaping India’s economic rise. The paper not only compares distinct moments in Indian history but also draws parallels with other landmark cases, like South Korea’s 1980s industrial surge. Such a sector-based analysis could be fruitfully applied to understand why different industries succeed or lag in emerging economies. 

Different Sectors, Different Needs

In order to become competitive — both domestically and (especially) internationally — hardware manufacturers often need much from the state, what the authors call a “produce and protect regime.” This can include the construction of factories and the formation of state-owned industries (SOEs), as well as tariffs to reduce competition or labor laws that restrict union strikes. Perhaps most importantly, manufacturers need a state whose legislators and bureaucrats can coordinate with each other in response to market challenges. Such a regime is incompatible with excessive “red tape” or with the “capture” of regulators by narrow interest groups. Because customers tend to view manufactured goods as “substitutable” with each other, firms will face intense competition as regards price and quality.
 

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Fig. 2: Inter-agency coordination required for sectoral success.
 

The situation is very different for service providers, whose success depends on building strong relationships with customers. States are not essential to this process, even if their promotional efforts can be helpful. Coordination across government agencies is similarly less important, as just one agency could provide tax breaks or host promotional events that benefit service providers. Compared with manufacturing, customers tend to view services as less substitutable — they are more intangible and customizable, which renders competition less fierce. Understanding India’s computing history reveals that the state’s inability to meet hardware manufacturers’ needs severely constrained the sector’s growth. 

The History of Indian Computing

Although India inherited a convoluted bureaucracy from the British Raj, the future of its computing industry in the 1960s seemed promising: political elites in New Delhi supported a produce-and-protect regime, relevant agencies and SOEs were created, and foreign computing firms like IBM successfully operated in the country. 

Yet by the 1970s, some bureaucrats and union leaders feared that automation would threaten the federal government’s functioning and India’s employment levels, respectively. Strict controls in both the public and private sectors were thus adopted, for example, requiring trade unions — which took a strong anti-computer stance — to approve the introduction of computers in specific industries. The authors make special mention of India’s semiconductor industry. It arguably failed to develop due to lackluster government investment, the need for manufacturers to obtain multiple permits across agencies, decision makers ignoring recommendations from specialized panels, and so on.

Meanwhile, implementing protectionist policies proved challenging. For example, decisions to allow the importation of previously banned components required permission from multiple ministries and agencies. After India’s 1970s balance-of-payments crisis, international companies deemed inessential were forced to dilute their equity to 40% and take on an Indian partner. IBM then left the Indian market. At the same time, SOEs faced growing competition over government contracts and workers, owing to the growth of state-level SOEs.

The mid-1980s represented a partial turning point as Rajiv Gandhi became Prime Minister and liberalized the computing industry. Within weeks, Rajiv introduced a host of new policies and shifted the government’s focus from supporting public sector production to promoting private firms, which would no longer face manufacturing limits and would be eligible for duty exemptions. Changes to tariff rates and import limits would not require approval from multiple agencies. Meanwhile, international firms reengaged with Indian markets via the building of satellite links, facilitating cross-continental work, such as between Citibank employees in Mumbai and Santa Cruz.

However, this liberalizing period was undermined and partially reversed after 1989, when Rajiv’s Congress Party (INC) lost its legislative majority and public policy became considerably more fragmented. Anti-computerization forces, especially the powerful Indian trade unions, worked to stymie Rajiv’s reforms. Pro-market reformists were forced out of their positions in Indian bureaucracies. Rajiv was assassinated in 1991, after which Congress formed a minority government with computer advocate P. V. Narasimha Rao as PM. Yet all of this occurred at a delicate time, as India was at risk of defaulting and had almost completely exhausted its foreign exchange.

By the late 1990s, both the hardware and software sectors should have benefited from the rising global demand for computers, yet India’s history of poor state coordination hindered manufacturers. Meanwhile, software firms were able to take advantage of global opportunities given their comparatively limited needs from state actors and political networks — for example, helping European Union banks change their computer systems to Euros. Ultimately, the Indian state has powerfully shaped the fortunes of these different sectors.

*Research-in-Brief prepared by Adam Fefer.