China’s Defense Paper 2002 was released in December 2002. It is the fourth such Paper since 1995. It clearly affirms that the top priority for China is to continue its modernisation. In particular, economic security is given more attention. The report also echoes the guidelines set at the 16th National Congress of the Communist Party for the future development of China. As stated in the White Paper, “The 16th National Congress of the Communist Party of China… has drawn up a grand blueprint for China’s development in the new century.

American security policy towards South Asia can basically be divided into three stages: balance of power in the Cold War era, beyond balance of power after the end of Cold War, and new balance of power after September 11.