Many scholars have argued that systemic risks of conflicts tend to increase at critical junctures of power transitions or major power shifts. This article examines the economic and military rise of China and the challenges that it both faces and poses in East Asia, especially in relation to the United States. Specifically, it connects issues of power projection and parity, trade, and interdependence, as well as international institutions and governance to underscore the need for continued economic engagement and institutional enmeshment to lessen the likelihood of militarized conflict in the region.