On December 29, 2005, the Vietnamese foreign ministry accused Taiwan of being involved in the construction of a runway in the biggest of all of the islands, Itu Aba, in the disputed South China Sea. Also known as Taipingdao in Chinese, Ba Binh in Vietnamese and Ligaw in Filipino, it is strategically located in the region. Cumulatively, the South China Sea islands, covering about 200 islands and 800,000 square kilometres, are a bone of contention between Taiwan, China, Vietnam, Brunei, Malaysia and the Philippines.

The dramatic revision of China's GDP (Dec 20) by the National Bureau of Statistics in Beijing reveals that the dragon's economic vitality is far more robust than earlier estimated.

The feud between the two Asian giants is getting shriller. No sooner China had announced its 'peaceful development' policy through a White Paper than the Japanese foreign minister voiced his concern about the 'considerable threat' that Beijing posed. The latest spat in the running battle of charges and counter-charges is the controversial suicide by a consular staff in Japan's embassy at Beijing. The frosty relationship between the two countries is bound to cast a big shadow over the entire East Asian region in the coming years.

The inaugural East Asian Summit (EAS), representing nearly 50 per cent of the world's population with 20 per cent of global trade, and comprising 16 nations that are on a dynamic path of economic development, is obviously a mega event. For India, it is yet another opening to increasingly align itself with this region and play a commensurate political and security role. There is no question that the centre of gravity is decisively moving to East Asia and developments in this region will offer great economic opportunities and pose serious challenges as well.

In 2001, Uzbekistan opted to become the linchpin of US policy goals in Central Asia. It was then argued that Washington would guarantee the nurturing of geo-political pluralism in the region. This was viewed against the backdrop of the historical ascendancy of China and the imperial decline of Russia. Much has happened since then. Today the US is facing a deadline to quit its airbase in Karshi-Khanabad (K-2), set up in the immediate aftermath of 9/11, because of Tashkent’s suspicion that Washington had plotted the revolt in Andijan on May 13, which led to a bloody massacre.

Last week witnessed a major development on the India-China energy front with the joint bidding plan for Petro-Canada's Syrian assets by India’s Oil and Natural Gas Corporation (ONGC) and the China National Petroleum Corporation (CNPC). In September this year Petro-Canada expressed interest to sell off its 38 per cent stake in the Al Furat field, which produces about 70,000 barrels of oil daily accounting for 50 per cent of Syria's total output. This is the first time that Indian and Chinese firms have joined together to secure stakes in an overseas energy facility.