China Transnational Issues
Disputes - internationalinvolved in complex dispute with Malaysia, Philippines, Taiwan, Vietnam, and possibly Brunei over the Spratly Islands; the 2002 ''Declaration on the Conduct of Parties in the South China Sea'' has eased tensions but falls short of a legally binding ''code of conduct'' desired by several of the disputants; most of the rugged, militarized boundary with India is in dispute, but the two sides are committed to begin resolution with discussions on the least disputed Middle Sector; Kashmir remains the world's largest and highly militarized territorial dispute with portions under the de facto administration of China (Aksai Chin), India (Jammu and Kashmir), and Pakistan (Azad Kashmir and Northern Areas), but recent discussion and confidence-building measures among parties are beginning to defuse tensions, India does not recognize Pakistan's ceding lands to China in a 1964 boundary agreement; China and Taiwan continue to assert their claims to the Japanese-administered Senkaku Islands (Diaoyu Tai) with increased media coverage and protest actions; certain islands in Yalu and Tumen rivers are in an uncontested dispute with North Korea and a section of boundary around Mount Paektu is indefinite - China has been attempting to manage illegal migration of North Koreans into northern China; China and Russia in 2004 resolved their last border dispute over islands in the Amur and Argun Rivers, but details on demarcation have not yet been worked-out; boundary delimitation agreements signed in 2002 with Tajikistan cedes 1,000 sq km of Pamir Mountain range to China in return for China's relinquishing claims to 28,000 sq km, but demarcation has not commenced; agreements with Vietnam demarcating maritime boundaries and fisheries cooperation in the Gulf of Tonkin were ratified in June, and demarcation of the land boundary continues; China occupies some of the Paracel Islands also claimed by Vietnam and Taiwan; in response to groups in Burma and Thailand expressing concern over China's plans to construct 13 hydroelectric dams on the Nu River in Yunnan Province (Salween River in Burma), Chinese Premier Wen Jiabao suspended the project to conduct an environmental impact assessment, a smaller scale version of only 4 dams is now scheduled to move forward
Illicit drugs
major transshipment point for heroin produced in the Golden Triangle; growing domestic drug abuse problem; source country for chemical precursors and methamphetamine
