Disputes - international:
in 2005, China and India initiated drafting principles to resolve all aspects of their extensive boundary and territorial disputes together with a security and foreign policy dialogue to consolidate discussions related to the boundary, regional nuclear proliferation, and other matters; recent talks and confidence-building measures have begun to defuse tensions over Kashmir, site of the world's largest and most 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); India does not recognize Pakistan's ceding historic Kashmir lands to China in 1964; about 90,000 ethnic Tibetan exiles reside primarily in India as well as Nepal and Bhutan; China asserts sovereignty over the Spratly Islands together with Malaysia, Philippines, Taiwan, Vietnam, and possibly Brunei; the 2002 "Declaration on the Conduct of Parties in the South China Sea" has eased tensions in the Spratlys but is not the legally binding "code of conduct" sought by some parties; Vietnam and China continue to expand construction of facilities in the Spratlys and in March 2005, the national oil companies of China, the Philippines, and Vietnam signed a joint accord on marine seismic activities in the Spratly Islands; China occupies some of the Paracel Islands also claimed by Vietnam and Taiwan; China and Taiwan have become more vocal in rejecting both Japan's claims to the uninhabited islands of Senkaku-shoto (Diaoyu Tai) and Japan's unilaterally declared equidistance line in the East China Sea, the site of intensive hydrocarbon prospecting; certain islands in the Yalu and Tumen rivers are in an uncontested dispute with North Korea and a section of boundary around Mount Paektu is considered indefinite; China seeks to stem illegal migration of tens of thousands of North Koreans; China and Russia prepare to demarcate the boundary agreed to in October 2004 between the long-disputed islands at the Amur and Ussuri; demarcation of the China-Vietnam boundary proceeds slowly and although the maritime boundary delimitation and fisheries agreements were ratified in June 2004, implementation has been delayed; environmentalists in Burma and Thailand remain concerned about China's construction of hydroelectric dams upstream on the Nujiang/Salween River in Yunnan Province
Refugees and internally displaced persons:
refugees (country of origin): 299,287 (Vietnam) estimated 30,000-50,000 (North Korea) (2005)
Illicit drugs:
major transshipment point for heroin produced in the Golden Triangle; growing domestic drug abuse problem; source country for chemical precursors and methamphetamine