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.

The Free Aceh Movement (Gerakan Aceh Merdeka, GAM) formally launched its political party on May 23, 2006 at Banda Aceh. It has also appointed two independent candidates for the gubernatorial elections in Aceh, the date for which is likely to be announced after the passage of the Aceh Governing Bill in the Indonesian parliament. The Indonesian government claims that the bill would be passed by the end of May or early June, which would decide the standing of the political party instituted by GAM.

Hu Jintao's recent foreign visits are integral to China's foreign policy strategy of building partnerships around the world. As part of this strategy the Chinese President visited the United States, Saudi Arabia, Morocco, Nigeria and Kenya last month. The official Chinese position hailed these visits as an important part of the PRC's diplomatic policies.

Indonesia and Australia have been at diplomatic loggerheads on the issue of granting political asylum to 42 Papuan refugees who sailed into Australia's Cape York Peninsula in January 2006. While Australia has granted them temporary visas, Indonesia has been asking for their repatriation. Papua has been projected as the next East Timor by Australia and this has become an issue for the Indonesian authorities as Papua has rich mineral resources and Indonesia would not like to have Papua go the East Timor way.

At the end of 2005, China became the world's sixth largest economy if one were to look at the size of the Gross Domestic Product (GDP) alone. China 's GDP was estimated to be 15.99 trillion renminbi (RMB) i.e., around USD 1.98 trillion. It now follows the United States , Japan , Germany , Britain and France in GDP terms and is expected to emerge the fourth largest economy before the end of 2006.