A neo-liberal economy, an integrating component of the global village, a Confucian society ruled by a Leninist Party structure, a 21st century economic modernization endeavour cohabiting with an early 20th century political system, China offers a tantalizing proposition for looking into the crystal ball, and whither China becomes a legitimate subject of inquiry, both fascinating and complicated, full of pitfalls and open to dangerously misleading presumptions.

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.

As part of its peaceful rise strategy, China has made resolute investments in the field of science and technology. One major aspect of this technological quest has been its investments in space technologies. China's success in this field is remarkable and has brought glory to the nation. However, at the same time, the anti-satellite test (ASAT) undertaken by China, during January 2007, has raised the fears of the weaponization of space.