AS the turn of the millennium approaches, US president Bill Clinton has adopted a new policy of "principled pragmatism" toward China. Gauging the emerging geo-strategic balances, he recognises that Sino-American relations will be one of the most pivotal international relationships of modern history and that the crucial issues of world peace, prosperity and security will revolve around the interaction of the world's largest and richest nations. Experts believe that the very character of the next century may well be moulded by Clinton's China visit and how the two nations deal with a wide range of challenges, such as mitigating the effects of Asia's financial crisis and easing the threat of nuclear tensions between India and Pakistan in South Asia.