China, once seen as a threat by the states of South Asia, is now viewed correctly as an alternative development opportunity. The unprecedented success of the Chinese development model places it as an obvious alternative to that offered by India-or indeed by the Western model of development-but what implications does this have for the middle and small powers that surround India, and indeed for India and the Western developed world? The fundamental rationale for China's relations with South Asia has changed radically, but the Sino-centric nature of Chinese foreign policy remains. Uniquely, for India's neighbours, but also for the global political economy as a whole, Chinese economic power raises political issues of human security, economic interdependence, and the relationship between physical infrastructure and the benefits of global public goods. The Chinese necessity to tranship through South Asia is identified as a complex new reality for the great power.