Chinese Prime Minister Wen Jiabao's visit to New Delhi on April 11-12 comes soon after that of US Secretary of State Condoleezza Rice (March 16) and will be followed by Japanese Prime Minister Junichiro Koizumi's visit in end-April.

While this scheduling may be a matter of coincidence, the outcome of the Wen visit and the manner in which it impacts the Sino-Indian relationship has the potential to significantly shape the emerging Asian strategic systemic and related security landscape.

The oil price in the international energy market appears set to remain high for the rest of this year despite the attempt of the oil giants to increase production. The major sufferers of the price hike are those Asian countries whose dependency on Persian Gulf oil is alarmingly growing day by day. Meanwhile, the OPEC countries’ plan to revise the price band of oil to a higher level, currently set at $22-$28 per barrel, suggests that the international oil price would not come back to a ‘pre-Iraq level’.

The visit of US Secretary of State Ms. Condi Rice to Delhi on March 16 had generated considerable optimism about where India-US ties are headed and this was highlighted in my last column (March 24). However events over the last week have been even more promising and the telephone conversation between US President Mr. Bush and the Indian PM Dr Manmohan Singh on March 25 and the subsequent background briefing by the US State Department indicate that the Bush team has outlined an ambitious policy towards South Asia.

On March 7, China unveiled a new Anti-Secession Law in its third session of the 10th National People’s Congress meeting. The law legalizes China to take military action against the renegade province, Taiwan. The full text of the Anti-Secession Law stated a three-point scenario for ‘‘non-peaceful action’’ against Taiwan.

The US offer to sell F16s and F18s to India, announced on March 25, has to be seen in context. True, this initiative is linked to the White House decision to lift the ban on supplying F16s to Pakistan and the more cynical view is that the US manufacturers of these aircraft will now laugh all the way to the bank as the sub-continent gets sucked into an arms race.