Asking China to demonstrate sensitivity to its core interests, India has said that Asian countries would judge China's peaceful rise not so much by the intentions of its leadership as by their actions. Foreign Secretary Nirupama Rao said China's rise, which presents both challenges as well as opportunities, will be watched closely. Speaking at a seminar, She said, there will be both competition and cooperation but a stable dynamic equilibrium can be maintained within the larger matrix of dialogue and diplomacy. Mrs Rao added that China has to demonstrate sensitivity to India's core interests. The remarks come in the backdrop of India's serious concern over Chinese policy of issuing stapled visas to residents of Jammu and Kashmir which New Delhi feels is impingement on the country's sovereignty and territorial integrity. Recently China also issued stapled visas to two Indian sportsmen from Arunachal to take part in the Weightlifting Grand Prix at Fujian province.