A Rising Asia.

CHINA; INDIA; NORTH Korea; SOUTH Korea; ASIA

The article comments on economic conditions in Asia as of July 25, 2005. The outlook for stability and continuing economic growth in Asia has never been better. Even though China gave notice in March in its antisecession law that it would use "nonpeaceful means" to stop Taiwan if it moved toward independence, the U.S. and Japan had earlier issued a statement declaring Taiwan to be one of their joint strategic interests. To forestall any isolation and containment, China has actively cultivated its neighbors. China must "persuade" North Korea to give up its nuclear weapons program--or at least freeze and quarantine its nuclear material--to avoid a nuclear arms buildup in Japan and South Korea. Its trade with South Korea is booming, with South Korean multinational corporations making large investments in China. India is studying the ways in which China has so rapidly built its infrastructure and attracted massive flows of foreign direct investment. The 9/11 terrorist attacks in 2001 directed the immediate thrust of U.S. policy away from China. Earlier that year the incident involving the U.S. EP-3E spy plane forced to land on Hainan island had strained U.S.-China relations. But after 9/11, U.S. resources worldwide were mobilized to counter al Qaeda and other Islamic terrorists. China, India and Pakistan have supported America in the war on terror, and U.S.-China relations have improved.