Asia Pacific security trends are being heavily affected by the still-unfolding impact of US-led efforts to combat international terrorism. Triggered by the terrorist attacks of September 11, 2001, in the United States, these efforts are altering major power relationships and increasing concerns over terrorism, particularly in Southeast Asia. The aftermath of September 11 has also caused new tensions between India and Pakistan and accelerated the world economic downturn, hurting many Asia Pacific countries. September 11, however, did not change several of the fundamental issues affecting the regional security landscape. These include sensitivities in US-China relations and in the Taiwan Strait, the evolving regional role of Japan, controversy over the George W. Bush administration’s pursuit of missile defense, instability in Indonesia, and the situation on the Korean peninsula, which has been affected by the stalling of the North-South and US-North Korean dialogues. These issues and their implications are highlighted in this edition of the Asia Pacific Security Outlook.