A U.S. undersecretary of defense warned Taiwan recently that China was developing technical means with which to shut down Taiwan's utilities and communications. "Taiwan could be electronically blockaded, isolated from the world, creating a kind of perfect storm in which the U.S. could not communicate with Taiwan or Taiwan with the world," Richard Lawless told Taiwanese officials, according to the Associated Press. China has pressed ahead with its military modernization plans, including developing indigenous Airborne Warning and Control System (AWACS) planes. At the same time, a plurality of Taiwanese think that the government's plans to spend additional hundreds of millions of dollars on defense technology to be bought in the U.S. is too expensive. Indeed, the best news for Taiwan recently was the European Parliament's decision not to lift an EU ban on arms sales to china.

The basis of China's power, though, isn't military but economic. Christian Science Monitor discusses Chinese President Hu Jintao's two-week-long trip through Latin America ahead of a summit this week. Hu comes bearing gifts, including business deals to increase trade between China and resource-rich countries like Chile and investment deals for Argentina, where China will invest billions over the next decade. Particularly important is Brazil, New York Times writes, where the world's best iron reserves are located. Brazil and China have publicly flirted with the idea of a free trade agreement.

William Ratliff, a fellow at Stanford's Hoover Institute, says in the CSM article that China is scoring a PR coup with Hu's journey: "It is telling that Hu is spending more time in South America over this fortnight than Bush has in the past four years...Hu will come over as much more interested in Latin American people," he suggests. "His sweet, soft-power vibes leave Bush sounding like a foghorn."

Back in China, though, it's still hard for Chinese to get accountability from the Party or the government. Washington Post looks at how the bureaucracy blocked one group of Chinese cab drivers from even pursuing redress.