The paper deals with the changing nature and manifestation of the ‘World Order’. The focus has been on the South Asian region. China has been undertaken the driver of this ‘New World Order’, and it is discussed that how it has become a challenge to the Indian Foreign Policy in the recent times – both regionally and globally. Chinese policies and India’s responses has been discussed. It further deals with the inherent weaknesses in the Chinese model and discusses that how the post-Cold war, globalized world is essentially a multi-polar world and no one country can establish itself as the superpower. The paper attempts to deal with the various facets – from hard to soft power – and explains the nuances of the recent developments in the region and its implications at the global level and vice versa.