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.

Calling upon party members to study the Selected Works of Jiang Zemin (SWJZ) in line with a decision taken by the Central Committee of the Communist Party of China (CPC), President Hu Jintao termed the publication and issue of the SWJZ "a major event in the political life of the party and state." Earlier, an editorial in the People's Daily trumpeted the publication of the SWJZ as "offering a powerful weapon of ideology for China's construction of socialism with Chinese characteristics and increasing the spiritual strength of Chinese people to build a well-off society in an all-round way." S

Nathu La, identified as the third mountain pass for border trade between India and China, is officially slated to open on July 6, 2006 after a gap of 44 years. Previous attempts to open the border pass had to be postponed due to lack of proper infrastructure. This time around, the infrastructure from the Indian side is complete. A field visit to Nathu La on June 25, 2006 revealed that the approach road has been constructed. And the warehouses, customs and administrative offices, banks etc. at Sherathang, the designated trade mart situated 5 km from Nathu La, have been completed.

Communist China, which has so far pursued a policy of state-sponsored repression of religion, has suddenly begun to promote a revival of Buddhism. This has deeper significance than what meets the eye. From April 13 to 16, 2006, China staged the World Buddhist Forum in Hangzhou for the first time. This first major Buddhist conference since the Chinese Communist Party took power should not be viewed as an isolated event, but is inextricably linked with growing social unrest in China, the challenges of globalisation and its wider foreign policy imperatives.

Travelling in Arunachal Pradesh without having to suffer from poorly developed roads is indeed inconceivable. Existing roads by themselves are of the primitive 'potholed' variety, which is made worse by frequent landslides in the rainy season. This state of affairs not only disconnects the state from the rest of India but also proves hazardous for the Indian security apparatus operating along the country's borders with China.