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The US will face major foreign policy challenges in East Asia in the twenty-first century. In this article, Ralph A. Cossa, president of the Pacific Forum CSIS, Honolulu, examines the Bush administration's policy towards East Asia which he argues continues to be alliance-based. The principal issues include: the precarious situation on the Korean Peninsula; China's potential emergence as a regional power and the sensitive topic of the Taiwan Strait, Japan's struggle with economic and constitutional reform and an unstable Indonesia. The administration's stated commitment to missile defense has been well publicized and the security implications of this for the region are also examined by Cossa. Although a ''Vision statement'' on the Asia-Pacific is still lacking and needed, he argues that the basic components of the Bush administration's Asia strategy appear to be well-formed.