The dawn of twenty-first century coincided with an unusual phenomena in the arena of international relations and that is the emergence of China and India as global powers. The steadily rising rate of economic growth in India has recently been around 8 percent per year and there is much speculation about whether and when India may catch up with and may even surpass China’s over 10 percent growth rate. India and China understand the concept of co-existence and the growth very well. This engagement has elements of both rivalry and cooperation.

The Pentagon releasing annual reports on Chinese Military Power is not new. However, for all these years Pentagon’s basic mandate has been to contextualize the Chinese threat to the US interests. Interestingly, in its latest report to Congress, titled "Military and Security Developments Involving the People's Republic of China, 2010" it highlights some issues of concern for India in regards to certain Chinese military investments.

The Indian Navy announced plans to dispatch a flotilla of four warships to the Asia Pacific region in March-April this year. These vessels will make goodwill visits to ports in the region and also engage in joint exercises with a number of regional navies: Singaporean Navy for the exercise Simbex in South China Sea; Malabar with the US Navy and the Japanese Maritime Self Defence Force (JMSDF) off the Okinawa coast; and Indra with Russian Navy off Vladivostok.

After the 17th Chinese Communist Party Congress National Meeting 2007, China started focusing on South Asia, specifically India. Both have been favorably disposed towards multilateralism, with India joining the Shanghai Cooperation Organization as an observer, while China joining SAARC summit in April 2008, also as an observer. Besides, people to people diplomacy expanded with mutual tourist visits.

A new kind of apartheid is emerging from a country which had been under five decades of apartheid regime. The recent denial of visa to Dalai Lama to enter and attend a conference in South Africa has created much uproar in the breaking news! Dalai Lama was to attend the Nobel Peace Prize laureate's conference that was to highlight the role of football in fighting xenophobia and racism.

The Chinese government has once again conveyed clear indication to the world its ability to administer the local media in its own favor during disasters, both natural and human. Even the government can mould the media reports for its own interest as it happened during Sichuan earthquake and thereafter. The Chinese media has shown contrasting behavior with respect to two disasters- the SARS epidemic (2003) and the Sichuan earthquake (2008).

China’s October 24 launch of its Chang-e 1 (Moon Goddess) Moon survey satellite has been heralded by the Chinese government as a “giant leap” for China’s peaceful exploration of outer space. But the launch of Chang-e, as well as subsequent Chinese Moon missions, to very likely include manned Moon activities, should also be viewed as a major step into space for China’s People’s Liberation Army (PLA), which controls all of China’s space activities.

The fundamental cultural influences [mentioned in the first part of the article, “Negotiating with China-I”, Article No:120, June 14, 2007], have left their imprint upon the negotiating style of the Chinese. Scholars like John Graham and Mark Lam (The Chinese Negotiation. Harvard Business Review, October 2003) have identified and defined a set of eight elements that one would have to contend with when dealing with the Chinese.

After four decades of a political standoff, the recent thaw in Sino-Indian relations has seen a renewal of dialogue and the start of substantive negotiations between the two countries. But negotiating with the Chinese – the inscrutable Orientals, as the Europeans called them – requires a very different set of sensitivities and skills to what we Indians are accustomed. Our negotiating skills have largely been limited to Americans, Europeans and West Asians who are distinctly more transparent, open and non-contextual in their negotiations than the Chinese or the traditional Japanese.

Bhutan’s King is to hand over power to the elected government in 2008. First ever new Constitution, drafted in March 2005, aims to set up a two party democracy after a century of absolute monarchy put in place with British help in 1907. Leaders of Bhutan’s political parties set up in exile (in neighboring India and Nepal) have welcomed King Jigme Singye Wangchuk’s announcement to abdicate the throne in 2008.