equent unhappy relations between the two neighbouring countries. China's 'bamboo curtain', its background of exclusiveness and insularity had compounded the problem. Interest in China has grown exponentially because of its unparalleled economic growth challenging classical economics and its emergence as the second largest economy on the strength of FDI generated exports. Its current status as the virtual manufacturing capital of the world and as the main fund provider to the richest country has intensified the interest. China's superb performances in the 2008 Beijing Olympics and the recent 2010 Asian Games have unequivocally announced its emergence as a sports power. The cultural extravaganza put for their opening and closing ceremonies provided glimpses of its glorious past and cultural power. It has been investing heavily in Africa and some countries in South East Asia and Europe. Recent surveys in US show that its image ahs been improving even in countries traditionally unfriendly. The increasing emphasis on its traditional culture, involvement in UN and its peace keeping operations and improved image in many western countries show a rise in its soft power. The ongoing rapid modernization of its military and strong economy demonstrate its hard power. Most CEOs of multinational businesses expect China to continue as the leading edge of the recovery from recession. But, there are many issues concerning human rights on which the democratic world is critical. As India, now about 10-15 years behind China in terms of economic development, is estimated, in a few years' time, to overtake China in respect of growth of GDP and as there are may lessons Indian can learn in an emerging scene of 'cooperation and competition' between the two, it is interesting to study the emerging Chinese scenario. Basically, the author has given the facts, figures, studies and analyses, both positive and negative, leaving the reader to make his own value judgments, as Prof. (Dr.) M.G.S. Narayanan points out in his Foreword.