Military diplomacy has long been one of the essential constituents of international diplomacy and an effective method to foster bilateral and regional relationships. Arms transfers serve as an important foreign policy tool and have become, a crucial dimension of world politics. Conventional arms transfers entail not only the provision of weapons/ equipment but carry with them a number of military commitments that have long‐term implications. The PLA has always had a significant role in shaping and implementing China's foreign policy.

Much has been said about the India-China-Russia strategic triangle, a post- Cold War idea mooted by former Russian Premier Yevgeny Primakov.

The origins of Chinese nationalism are traceable to the post-Cold War era which saw the gradual erosion of Communist ideology and the Chinese government’s use of nationalism to shore up party legitimacy. Yet, the Chinese nationalism which has emerged is representative of Han nationalism and ignores ethnic minority nationalism in the larger cause of China’s unity and integrity. Therefore, the strains in Chinese nationalism are visible today, in the separatist movements in Tibet and Xinjiang.

China’s Defense Paper 2002 was released in December 2002. It is the fourth such Paper since 1995. It clearly affirms that the top priority for China is to continue its modernisation. In particular, economic security is given more attention. The report also echoes the guidelines set at the 16th National Congress of the Communist Party for the future development of China. As stated in the White Paper, “The 16th National Congress of the Communist Party of China… has drawn up a grand blueprint for China’s development in the new century.

American security policy towards South Asia can basically be divided into three stages: balance of power in the Cold War era, beyond balance of power after the end of Cold War, and new balance of power after September 11.

Policies of the developed world continue to affect the domestic as well as foreign policies of China and India in the post-Cold War period. The US war against terrorism in Afghanistan has drawn China closer to the US. This has set new parameters for Sino-Indian relationship. Economic reasons dominated the relations among nations in the 1990s, but the scare of terrorism has forged a global coalition and middle powers have few options to choose independent policies.