Despite its decline, Japan, which at the time of writing (summer 2010) was about to be displaced by China as the country with a GDP second only to the United States, was nevertheless a major power in its own right. It was in effect an economic and political competitor with China in Southeast Asia and China’s leaders were conscious of the Japanese capacity to become once again a significant military power and even possibly a nuclear one. India, which had become both a partner and a competitor of China, began gradually to establish a presence in Southeast Asia, where it was welcomed by Singapore.