ABSTRACT
Joseph Nye's concept of soft power has broadened the scope of power from traditional hard power strategies to new areas and strategies by which states may try to pursue their interests. The attractiveness of ideas, values and norms which is at the core of soft power has not only triggered a debate and policy initiatives in the US and Europe, China has also begun to shift its foreign-policy resources to soft-power initiatives. One indicator is the growing discourse on the concept of soft power and its relevance for China's foreign policy. Foreign policy always needs a new balancing between soft and hard power in order to achieve smart power and to pursue national interests in a changing international environment. India has slowly developed its soft-power capacities in order to create a new national image and to attract foreign investors. China's new engagement in South Asia may require again a rebalancing or fine tuning of India's hard and soft-power tools.
