External Affairs Minister Pranab Mukherjee's recent outburst that China poses a security challenge indicates a dangerous ambiguity in India’s China policy. The fact that Mukherjee has aired such a view after his intense and long diplomatic rapport with the leadership of that country needs to be noted seriously. It is not that China has not been a puzzle to Indian strategic thinkers. Even former Defence Minister George Fernandes considered China as India’s number one enemy, but his views were transformed after he paid an official visit to Beijing.

If current developments are any indicator, the long road to economic integration on either side of the Taiwan Straits has commenced. In a first of its kind, a sixty member delegation led by Chen Yunlin, Chairman of the Association for Relations Across the Taiwan Straits (ARATS) visited Taiwan from November 3-7, 2008 to hold talks with his counterpart Chiang Pin-kung, Chairman of the Straits Exchange Foundation (SEF). ARATS and SEF are two non-governmental organisations authorised by China and Taiwan in the early 1990s to examine the entire gamut of cross-Strait relations.

President Bush will host the first ever financial summit of the G-20 on November 15, 2008 in Washington to discuss the current global financial crisis which threatens the economic and political stability through out the world. The crisis comes on the heels of an economic crisis in the global economy in the first half of 2008 which was characterised by a record level of oil prices, global food shortages, high inflation and rising inflation in most countries.

The two recent glorious achievements - the Olympics and spacewalk mission – seem to have transcended China to a new global height with wide implications for the world’s strategic balance. From all accounts, analysts suggest that China will not only survive but has also gained from the recent global financial meltdown.

On October 7, 2008, the PLA Daily reported that the Central Military Commission (CMC) and the four general departments of the Chinese military celebrated in great style the success of the Shenzhou-VII manned space flight mission. Shenzhou-VII, carrying three astronauts (Zhai Zhigang, Liu Boming, and Jing Haipeng) returned successfully on September 28 after conducting a historic spacewalk mission. This success made China the third country after the United States and Russia to conduct a space walk mission.

Let the fact speak for itself. China was not happy about India gaining the waiver in the Nuclear Suppliers Group (NSG) and it played the role of a spoiler till such time it could. The Indian Government now feels betrayed. Perhaps India expected China’s reciprocity in exchange for its gracious support for the successful tour of the Olympic Torch. Indeed, it was naiveté that led India to believe Chinese rhetoric.