Security situation serious

Efforts to build trust are needed if China and the United States are to ensure that peace reign in the Asia-Pacific region

The economic conditions and security of the Asia-Pacific region are ever changing and will be greatly affected in coming times by three recent developments.

The first is China's continued economic growth and the accompanying fast modernization of its defenses, which have in one way or another changed the balance of military power in the region. After surpassing Japan in 2010 and becoming the world's second largest economy, China's GDP increased to $7.3 trillion last year and is expected to reach nearly $8 trillion this year, more than half that of the United States. As for China's defense budget, it increased to $105 billion this year, the largest amount that any Asian country has put toward that purpose and the second largest in the world, although it is still only a sixth of the size of the US defense budget. China's development of new weapon systems, acquisition of new military capabilities and development of new doctrines have all been the subjects of much media reporting, academic research and policy debate in recent years.