This article provides a brief overview of the theoretical literature on the rise of China, and then explores the implications of the rise of China for the U.S.- China rivalry. It then describes sources of underlying tensions in the Sino-Indian relationship. China and India are not only engaged in a competition for power and influence in Asia, but they are also locked in a particularly contentious border dispute. The authors then argue that economic interdependence may not be enough to offset the sources of conflict in the Sino-Indian rivalry. This holds true in spite of the presence of nuclear weapons by both sides in this dyad. Therefore, a limited conventional war remains a distinct possibility even though it is by no means inevitable.