As AFI Research correctly predicted, the new US Administration has declared Communist China as 'Foreign enemy number one' with incalculable consequences for the peace and future security of a very large part of Asia.

Bush is targeting a very different China from his 'daddy's' days, the new leadership in China will compete, it will not lie down and accept the US position.

In fact, China has little choice, a huge and growing population, stagnation in large parts of the economy, a vast and largely hidden ethnic and religious insurgency in much of Western China.

China also has a major terrorist problem and although considerable effort has gone into creating an effective counter-terrorist and Special Forces capability, the situation is far from under control.

The Chinese Government needs an outside threat, it simply needs a reason for its actions, its repression and a defense budget due to grow by some 12% in real terms.

The leadership in Beijing will welcome the new US stance, as will Putin's Russia, the main beneficiary as future supplier of huge quantities of sophisticated weapons for China's armed forces.

For a detailed and informed insight into the Chinese armed forces, their organization, weapons programs, and in particular its missile research & development contact AFI.

NATO continues to prevaricate over taking strong and effective action against the Albanian Terrorists spawned by the same KLA (Kosovan Liberation Army) that the Central Intelligence Agency and the British SAS among others, helped to create just a couple of years ago.

The failure to fully disarm the Albanian rebels, to properly protect Serbian civilians, and the ill-thought out and hasty removal of the Serbian security forces with their intimate knowledge of the Albanian underground has created a situation where the Albanian nationalistic insurgency, a mix of terrorism and gangster-ism, is spreading like a cancer to previously peaceful and integrated communities in neighboring nations.

Sooner or later it seems inevitable that NATO and Serb security forces will have to co-operate to bring this situation under control or the whole region will become a major flash point.

For a breakdown of the Armed Forces and Terrorist groups within the Balkans contact AFI

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