The Buddhist Kingdom of Bhutan is in sharp focus now. This is due to two critical factors: Bhutan's assertion of its identity and Beijing's tactics in the Himalayan region. Both factors have had an impact in the ordering of Indo-Bhutanese relations.
The SCO— a linchpin of China's Eurasia policy is viewed ominously by most international watchers. China is nurturing the SCO as an exclusive nucleus to undercut the US strategic outreach. But, Central Asia, the main nucleus, suffers from strategic ambiguity and the states there seek varied goals and play major power off each other. There is also an ostensible mismatch between Russia's liberal and China's expansionist approach. Will the SCO emerge as a distinct pole or will it remain an opportunistic alliance of desperate states?
In recent years, China has again publicly revived its territorial claims over India's northeastern state of Arunachal Pradesh. However, by insisting on these claims, China is making a settlement of the territorial issue virtually impossible and seriously misperceiving public opinion trends in India. China has failed to appreciate that if Arunachal is claimed to be the southern part of Tibet Autonomous Region (TAR), India cannot accept Tibet to be within China.
Under the impact of globalization the Chinese state is caught in the dilemma of intensifying economic reforms on the one hand, and maintaining authoritarian rule on the other. This dichotomy has put China at the crossroads and precipitated a debate between its Left and the Right groups on the direction the Chinese state should take. Hu Jintao sought to address this dilemma by formulating the concept of harmonious development.
