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China saw profound shifts in its regional security situation and diplomatic policies in 2013. On one hand, there was no letting up in the volatile situation of the Korean Peninsula, diplomatic disputes over the Diaoyu Islands and the South China Sea, the crisis in Afghanistan and the threats of terrorism, and on the other, even as it continues its rebalancing policy toward the Asia-Pacific, the US has also adopted the hedging strategy of cautious engagement with China. Despite recent slowdown in rebalancing, cautions engagement has been ratcheted up. The author reviews key issues related to China’s surrounding region, and tries to understand, on the basis of mid- to long-term studies, the regional security situation in terms of the pattern in its changes, its determining factors, and the impact of different determining factors on one another other.