1. Source: Image Credit: Ramachandra Babu/©Gulf News (http://gulfnews.com/opinions/cartoons/shift-in-focus-towards-asia-pacific-1.1089185) PIVOT OR RICOCHET: THE U.S. ENCOUNTERS AN ASSERTIVE ASIA

2. The “Pivot” – OOPS! – Rebalancing: Components  Strengthening bilateral security alliances  Deepening working relationships with emerging powers, including China  Engaging with regional multilateral institutions  Expanding trade and investment  Forging a broad based military presence  Advancing democracy and human rights

3. Military Expenditures: U. S. and China Compared In 2012 the US was the world’s biggest military spender at $682 billion with two major strategic allies in Asia: Japan spending 59.3 billion So. Korea spending 31.7 billion China was the second biggest military spender at $166 billion Changes in military spending:ChinaU. S. 2003-2012+175%+32% 2011-2012+ 7.8%- 6% Defense spending as % of GDP: 2003 2.0%3.7% 2012 2.14.4 Source: SIPRI as cited in Forbes: http://www.forbes.com/sites/stephenharner/2014/04/06/u-s-policy-not- china-is-driving-the-asian-arms-race/

5. Source: Greater Pacific Capital’s work on “The Gap Years,”; http://greaterpacificcapital.com/american-power-patterns-of-rise-and-decline/

6. China – US GDP Growth Rates Source: Patrick Truffer in http://www.offiziere.ch/?p=12504

10. Trans-Pacific Partnership (TPP) Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, Vietnam TPP market snapshot GDP: US$27,750.0 billion (2013) GDP per capita: US$34,752 (2013) Population: 798.5 million (2013) TPP % of world GDP: 37.5% (2013) TPP % of world population: 11.2% (2013) TPP % of world trade: 25.6% (2012) Source: Government of Australia (http://www.dfat.gov.au/fta/tpp/)

11. South Asia Some important data: India is now the largest importer of arms in the world China’s defense budget is more than three times that of India India’s military modernization effort is mainly focused along the border with China and in naval power projection capabilities As of 2011, India was the third largest purchaser of US arms but that accounted for only 7% of India’s total arms purchases. Russia continues to be India’s largest supplier India now conducts joint military exercises with China, more with Japan and still more with the US. In fact the US now conducts more joint military exercises with India than with any other country Source: The Hindu, January 14, 2014 (http://www.thehindu.com/opinion/lead/arming-india- into-dependency/article5574316.ece); Jeff M. Smith in The National Interest February 10, 2014 (http://nationalinterest.org/commentary/india-china-the-end-cold-peace-9853)