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Tensions over the Diaoyu/Senkaku Islands are still simmering and despite talks between high-ranking diplomats from both sides, many obstacles remain that prevent the two countries from reaching an agreement on the issue.
Vested interests pose a significant challenge to enacting the crucial reforms to China’s state sector, financial and fiscal systems, and urbanization policy that will enable continued growth.
The 18th National Congress of the Communist Party of China will convene on November 8, 2012, at which time seven of the nine Politburo Standing Committee members will retire, a new Central Committee will be elected, and Xi Jinping is expected to assume the presidency after a decade of preparation.
Asia needs to first get past leadership transitions and elections and then give measured diplomacy a chance to cool tensions over disputed territories in Asian waters.
In order to sustain the bullish argument for China's growth prospects over the next decade, questions debt, further investment projects, and growth rate of household consumption must be answered.
Fresh faces in China's leadership will hopefully usher in the economic and political reforms that China needs and loosen the state’s grip on society.
Southern Asia is undergoing a significant transformation in the strategic force postures of its principal states.
Japan and China should defuse tensions over the disputed Senkaku/Diaoyu Islands in the East China Sea.
There is increasing concern that China’s economic slowdown is intensifying. However it turns out, this slowdown is occurring at a particularly inopportune time for China—just as the next generation of leaders is being anointed.
China and Japan both stand to lose if territorial disputes disrupt normal economic relations. Changing roles in the regional production sharing network, energy needs, and political rhetoric are all complicating the picture.