Disputes - international:
in 2005, China and India began drafting principles 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; about 90,000 ethnic Tibetan exiles reside primarily in India as well as Nepal and Bhutan; 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" has eased tensions in the Spratlys but is not the legally binding "code of conduct" sought by some parties; Vietnam and China continue to expand construction of facilities in the Spratlys 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 have become more vocal in rejecting 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 an uncontested dispute with North Korea and a section of boundary around Mount Paektu is considered indefinite; China seeks to stem illegal migration of tens of thousands of North Koreans; China and Russia prepare to demarcate the boundary agreed to in October 2004 between the long-disputed islands at the Amur and Ussuri; demarcation of the China-Vietnam boundary proceeds slowly and although the maritime boundary delimitation and fisheries agreements were ratified in June 2004, implementation has been delayed; environmentalists in Burma and Thailand remain concerned about China's construction of hydroelectric dams upstream on the Nujiang/Salween River in Yunnan Province

Refugees and internally displaced persons:
refugees (country of origin): 300,897 (Vietnam) estimated 30,000-50,000 (North Korea)
IDPs: 90,000 (2006)

Trafficking in persons:
current situation: China is a source, transit, and destination country for women, men, and children trafficked for purposes of sexual exploitation and forced labor; the majority of trafficking in China is internal, but there is also international trafficking of Chinese citizens; women are lured through false promises of legitimate employment into commercial sexual exploitation in Taiwan, Thailand, Malaysia, and Japan; Chinese men and women are smuggled to countries throughout the world at enormous personal expense and then forced into commercial sexual exploitation or exploitative labor to repay debts to traffickers; women and children are trafficked into China from Mongolia, Burma, North Korea, Russia, and Vietnam for forced labor, marriage, and sexual slavery; most North Koreans enter northeastern China voluntarily, but others reportedly are trafficked into China from North Korea; domestic trafficking remains the most significant problem in China, with an estimated minimum of 10,000-20,000 victims trafficked each year; the actual number of victims could be much greater; some experts believe that the serious and prolonged imbalance in the male-female birth ratio may now be contributing to Chinese and foreign girls and women being trafficked as potential brides
tier rating: Tier 2 Watch List - China failed to show evidence of increasing efforts to address transnational trafficking; while the government provides reasonable protection to internal victims of trafficking, protection for Chinese and foreign victims of transnational trafficking remain inadequate