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.

If current trends are any indication, the global financial system will witness a unique 'first' in mid-October when China's foreign exchange reserves are expected to cross US$ 1 trillion.

In his latest address to the Indian Council of World Affairs on India's regional policy, Foreign Secretary Shyam Saran reflected that the government had a long-term vision of an integrated South Asia, in which geographical boundaries would become irrelevant. With this in mind, New Delhi has put in place a number of measures to help connect with other countries in the region. Significantly, the Foreign Secretary's speech highlighted India's changing policies towards China.

On August 15, 2006, the Chinese Foreign Ministry issued a statement strongly protesting Japanese Prime Minister Junichiro Koizumi's latest visit to the Yasukuni Shrine. Koizumi’s six consecutive visits since he took office in April 2001 have chilled Sino-Japanese relations, making the issue a major stumbling block in the smooth development of relations. The souring of Sino-Japanese relations over the last few years has been a result of the complex enmeshing of two broad issues: history and power shift.