Abstract
China's foremost foreign policy challenge in 2011 was to grapple with an increased American presence in the Asia-Pacific which has affected the dynamics of big power relations in the region. China, nevertheless, did not overreact but sought stable ties with major powers and friendly cooperation with its neighbours. It also tempered expectations of its role in the eurozone debt situation. With an impending leadership succession in 2012, China will place a premium on maintaining a stable external environment.
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