| Based on principles drafted in 2005, China and India continue discussions 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; lacking any treaty describing the boundary, Bhutan and China continue negotiations to establish a boundary alignment to resolve substantial cartographic discrepancies, the largest of which lies in Bhutan's northwest; 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" eased tensions in the Spratly's but is not the legally binding "code of conduct" sought by some parties; Vietnam and China continue to expand construction of facilities in the Spratly's 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 continue to reject 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 dispute with North Korea; China seeks to stem illegal migration of North Koreans; China and Russia have demarcated the once disputed islands at the Amur and Ussuri confluence and in the Argun River in accordance with their 2004 Agreement; in 2006, China and Tajikistan pledged to commence demarcation of the revised boundary agreed to in the delimitation of 2002; demarcation of the China-Vietnam land boundary proceeds slowly and although the maritime boundary delimitation and fisheries agreements were ratified in June 2004, implementation remains stalled; in 2004, international environmentalist and political pressure from Burma and Thailand prompted China to halt construction of 13 dams on the Salween River |
