At the first east Asia summit last year ? which had China, Japan, South Korea, India, Australia and New Zealand as participants, together with members of the Asean ? the Malaysian prime minister recognized India?s importance and growing visibility as an economic powerhouse. But as far as south-east Asia is concerned, the country that needs to be more carefully watched is China.

Are China and India competitors in south-east Asia? Manmohan Singh has ruled out rivalry with China. But studies indicate that India and China will increasingly compete for resources, market and influence, although they may not become enemies again.

China?s growing influence is attributable in no small measure to its diplomacy, which has broken with the past culture of secrecy and aloofness. During the Cold War period, China?s economic diplomacy with respect to south-east Asia was not as prominent as it is now. At present, China?s desire to forge a partnership with south-east Asia has been designed to guard against the United States of America, which China perceives as the main threat. But Sino-American relations are characterized by interdependence, which is why there is more engagement than confrontation between the two countries. Japan is also seen to be a threat, given its special position as the US?s most important ally in the region.

The Chinese have put forward a new security concept for Asia. Railing against ?Cold War mentality, hegemony and power politics,? the Chinese have promised genuine mutual respect and cooperation, consensus through consultation and peaceful settlement of disputes. It has made several adjustments in its policies on crucial issues to remove misgivings among Asean countries ? for example its policy towards ethnic Chinese minorities living in the countries of the region or on the South China Sea issue or on the Asean plan to turn the region into a nuclear weapons-free zone.

Better links

China agreed to code of conduct on the South China Sea in 2002. In July 1999, it acceded to the south-east Asian nuclear weapons-free zone treaty. On its part, Asean?s stand on the highly sensitive Taiwan issue has given China very little to complain about. The south-east Asian countries do not have official or diplomatic relations with Taiwan because of their commitment to the ?one China? policy.

One also needs to cast a look at China-Asean linkages at the institutional and multilateral levels that have strengthened China?s position in the region immensely. Beijing was invited to attend the Asean ministerial meet in 1991. In 1993, it was invited to join the newly proposed Asean regional forum. Joint committees on economic, trade, scientific and technological cooperation were established.

China?s GDP has grown eight-fold since 1979 and has crossed the one trillion dollar mark. It is now the fifth largest trading nation, and may become the second largest trading power in 2050. In the light of all these indicators, it is obvious that the south-east Asian countries have a much bigger stake in maintaining close relations with China than in the past. Asean is now China?s fourth largest trading partner. In November 2004, an accord was signed to create the world?s largest free trade area by the end of the decade. China?s positive contribution to the historic summit in 2000 in Pyongyang and talks to resolve the North Korean nuclear stalemate have also gone down well with the Asean.

Much as the rest of the world, anti-American feelings are also strong in south-east Asia, although many countries continue to have military links with the US. More cordial ties with China, therefore, will not automatically reduce Asean?s reliance on the US. But China now undoubtedly finds itself in a vastly improved position in the region.