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In a clear display of China's growing political influence in the region, all four nations affirm the "one-China" policy that views Taiwan as an inalienable part of the mainland. Similarly, they recognize Tibet as an integral part of China.

The Dragon vis-à-vis The Elephant

Rarely has the economic ascent of two still relatively poor nations been watched with such a mixture of awe, opportunism, and trepidation. Between them, India and China account for 18 percent of the global economy (based on Purchasing Power Parity or PPP). If the present trend of growth continues, China's economy should leave that of the US far behind and India's should be bigger than Japan's (using PPP) in a decade.

There is much happening between the two potential economic giants too. Bilateral trade between India and China has touched the $14 billion mark. This makes China India's number one trade partner in North-East Asia, a position held by Japan earlier.

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* Contributed by: -
Amit Sharma & Ashwin Jayashankar,
PGDIM XI,
NITIE, Mumbai.