There is increasing discussion in the international press of uneasy parallels — with some pointing to similarities and others highlighting major differences — between the developing situation in East Asia today and the Balkans tinderbox 100 years ago. Even former Australian Prime Minister Kevin Rudd has joined the debate ("A maritime Balkans of the 21st century?" Foreign Policy, Jan. 30). At the heart of the conversation is China's parallel with a rising Germany a century ago.

Australia today is experiencing tensions between its historical origins, cultural roots and political antecedents in Europe, and its geographical location and trading interests in Asia. At the heart of the policy tussle is the challenge of managing the bilateral relationship with China.

China is the dominant political and economic power in the region and the new center of geopolitical gravity in the world. In the last three years it has recklessly squandered much of the good will patiently accumulated over three decades by an aggressive regional posture in dealings with several neighbors.