China

Simmering South China Sea Dispute

On December 29, 2005, the Vietnamese foreign ministry accused Taiwan of being involved in the construction of a runway in the biggest of all of the islands, Itu Aba, in the disputed South China Sea. Also known as Taipingdao in Chinese, Ba Binh in Vietnamese and Ligaw in Filipino, it is strategically located in the region. Cumulatively, the South China Sea islands, covering about 200 islands and 800,000 square kilometres, are a bone of contention between Taiwan, China, Vietnam, Brunei, Malaysia and the Philippines.

China ‘s Economy: Statistics versus Reality

At the end of 2005, China became the world's sixth largest economy if one were to look at the size of the Gross Domestic Product (GDP) alone. China 's GDP was estimated to be 15.99 trillion renminbi (RMB) i.e., around USD 1.98 trillion. It now follows the United States , Japan , Germany , Britain and France in GDP terms and is expected to emerge the fourth largest economy before the end of 2006.

Japan-China Rift and East Asian Security

The feud between the two Asian giants is getting shriller. No sooner China had announced its 'peaceful development' policy through a White Paper than the Japanese foreign minister voiced his concern about the 'considerable threat' that Beijing posed. The latest spat in the running battle of charges and counter-charges is the controversial suicide by a consular staff in Japan's embassy at Beijing. The frosty relationship between the two countries is bound to cast a big shadow over the entire East Asian region in the coming years.

China’s Foreign Policy Challenges and Evolving Strategy

The end of the Cold War, the September 11 terrorists’ attacks, preponderance of US power and globalisation have shaped the present world order and posed new opportunities and challenges for China. China’s need to fulfill its grand strategy of acquiring comprehensive national power within this external environment and overcome the existing challenges has given rise to its post-Cold War foreign policy strategy. Given the challenges it faces, its primary need is to ensure continuance of a peaceful environment to sustain its reform and modernisation programme.

India and the East Asia Summit

The inaugural East Asian Summit (EAS), representing nearly 50 per cent of the world's population with 20 per cent of global trade, and comprising 16 nations that are on a dynamic path of economic development, is obviously a mega event. For India, it is yet another opening to increasingly align itself with this region and play a commensurate political and security role. There is no question that the centre of gravity is decisively moving to East Asia and developments in this region will offer great economic opportunities and pose serious challenges as well.

India’s Balancing Role in the Central Asian Power Game

In 2001, Uzbekistan opted to become the linchpin of US policy goals in Central Asia. It was then argued that Washington would guarantee the nurturing of geo-political pluralism in the region. This was viewed against the backdrop of the historical ascendancy of China and the imperial decline of Russia. Much has happened since then. Today the US is facing a deadline to quit its airbase in Karshi-Khanabad (K-2), set up in the immediate aftermath of 9/11, because of Tashkent’s suspicion that Washington had plotted the revolt in Andijan on May 13, which led to a bloody massacre.

India-China Energy Cooperation: Attaining New Heights

Last week witnessed a major development on the India-China energy front with the joint bidding plan for Petro-Canada's Syrian assets by India’s Oil and Natural Gas Corporation (ONGC) and the China National Petroleum Corporation (CNPC). In September this year Petro-Canada expressed interest to sell off its 38 per cent stake in the Al Furat field, which produces about 70,000 barrels of oil daily accounting for 50 per cent of Syria's total output. This is the first time that Indian and Chinese firms have joined together to secure stakes in an overseas energy facility.

Railway to Lhasa: An Assessment

On October 12, 2005, China announced the completion of a railway line to Tibet—one of the world’s highest train routes. This railway line climbs 5,072m (16,640ft) above sea level and runs across Tibet’s snowcovered plateau—dubbed the roof of the world. China’s official Xinhua news agency while celebrating the achievement said that the equivalent of USD 3 billion had been spent on the challenging 1,118km (710-mile) section, after four years of construction.

The Political Economy of China’s Defence Modernisation

World over, differences exist about the impact of military expenditure. While development economists consider excessive military expenditure as wastage, many defence economists have a different view. With the defence versus1 development debate unending, China makes a unique contribution. While China’s defence expenditure is not well known, the hinese experience shows that investments in development do provide an expanded economic base subsequently, which will take care of defence needs.