This qualitative research illustrates an argument that status enhancement on the part of great powers generates status discrepancies in the global order. Their power dynamics are visibly demonstrated either in engagement or containment stratagems. Cold war and the post-cold war eras continued the legacy of unipolarity vs multipolarity. Hegemonic Stability Paradigm remained prevalent since post WWII however emerging power centers like EU (European Union), ASEAN (Association for South East Asian Nations), BRICS (Brazil, Russia, India, China, South Africa) competed with US economic predominance. The challenges to the US prestigious position by mounting influence from China escalated strategic competition and confronted US economic and security interests. In this perspective Indo-Pacific region becomes more pronounced to examine this prisoner’s dilemma revolving around containment or engagement. This research envisages that why great-powers entangle in strategic competition and what are its ramifications for regional states.  The complex and consequential nature of power syndrome between US and China is scrutinized by numerous scholars hence this research magnificently epitomizes the recurring conflict and cooperation on epistemological grounds. Profoundly, analytical, descriptive and explanatory techniques are used to explore the literature and recommend those areas where equilibrium is preferably maintained for regional peace and stability.

Key words: China, Great Powers, Prisoner’s Dilemma, Indo-Pacific Region, Status Enhancement, US, Zero-Sum Game.