Despite the categorical denial by the Pakistan Foreign Office spokesperson about a report published by a British newspaper in January 2006, that Islamabad was engaged in talks with China to purchase eight nuclear reactors worth US $7 billion, the Chinese media later disclosed Beijing's plan of signing an agreement to supply six reactors. Speculation in this regard has gained currency now that the two countries are to enter into a nuclear deal during the ongoing visit of Chinese President Hu Jintao to Pakistan.

As the India-China relationship continues to grow in the new Asian dynamics, Mr. Hu Jintao's maiden visit will indeed help to keep the momentum of improving ties going. The main thrust of both governments will be to establish greater political trust for future co-operation. Two-way trade between India and China is likely to touch US $24 billion this year. There are high expectations on both sides. Manmohan Singh and Hu know each other well. They have met and held talks five times during the last two years.

Refuting China's claim over Arunachal Pradesh, India's External Affairs Minister Pranab Mukherjee firmly reiterated that "The whole of Arunachal Pradesh is an integral part of India." Coming as it did days before the Chinese President's four-day visit to India from November 20, 2006, the statement made by China's Ambassador to India, Sun Yuxi, that "In our position, the whole of the state of Arunachal Pradesh is Chinese territory. And Tawang is only one of the places in it. We are claiming all of that. That is our position," is unfortunate.

While commemorating 50 years of China's diplomatic ties with Africa, the China-Africa Summit, held on November 4-5, 2006 adopted a three-year action plan to deepen the existing political and economic links. This Summit, being one of the largest summits ever hosted in China's modern history, not only reflects the importance China places on its relations with Africa, but also clearly illustrates the value that the continent now attaches to this emerging Asian power vis-a-vis the West.

The two-day China-Africa Summit on November 4 and 5, 2006 in Beijing, coinciding with the 50th anniversary of the establishment of China-Africa diplomatic ties, created a new milestone in China's relationship with the African continent. Hailed as a new type of strategic partnership, this gathering of forty-eight African countries - the biggest ever since the founding of the People's Republic of China - was concluded by a declaration and an action plan for 2007-2009.

China's cautious approach to defusing the ongoing North Korean nuclear crisis underscores the dilemmas that exist in its difficult relationship with North Korea on the one hand and its interests with respect to the United States on the other. What worries China more is North Korea's ambition and intention to further continue its nuclear programme. Moreover, China faces a daunting task in tackling the increasing American pressure to intensify actions against North Korea as per the UNSC resolutions.

The North Korean act of conducting an underground nuclear test has exposed the inherent limitations of various international institutions. It has also posed a challenge for the US as to how to make China behave as a responsible 'stakeholder' in international politics. If Beijing could not restrain Kim Jong-Il's regime from flagrantly conducting a nuclear test in disregard of the combined opposition of the international community, Pyongyang has created a complex political atmosphere, which needs China to deliver considerably to bring the current crisis to an end.

China and Japan issued a joint communiqué in Beijing on October 8 during the Japanese Prime Minister Shinzo Abe's first foreign visit, vowing to promote strategic relations between the two countries in the coming years. Both Chinese President Hu Jintao and Japanese Prime Minister Abe hailed the visit as a positive turning point in Sino-Japanese relations. Abe's visit to China is politically important since it is the first meeting between the leaders of the two countries in the past five years.