The outlook is uncertain for hundreds of support contractors, which toiled in obscurity before 9/11 and whose business grew rapidly over the past decade as military spending soared. Some might exit the market, while others are likely to return to their roots, working in peacekeeping operations and State Department soft-power initiatives.

China’s government has identified animation as a key area for development to boost the country’s global influence, or soft power. The success of DreamWorks Animation’s “Kung Fu Panda” franchise has sparked wide debate within China about why the country can’t leverage its culture as effectively as Hollywood.

The international chattering class has a label for these changes: American decline. The dots look so connectable: The financial crisis, say the pundits, comprehensively demonstrated the failure of "Anglo-Saxon" capitalism...Throw in the assertive new powers and there you have it—the portrait of America in decline.

...From the perspective of ASEAN, Korea has become a strategically important, economically crucial, and culturally rich partner. Korea’s soft power seems to make its impact felt everywhere in Southeast Asia. It fosters an atmosphere favorable for various exchanges between Korea and ASEAN....

Kung fu, pandas or Peking Opera are what one would commonly associate with China - but they are also vital cogs in a massive "soft power" exercise that China hopes will give it more global voice and an image makeover. It is also proving to be a tough challenge for policymakers, as the growth of the country's "soft power" has not been in tandem with that of its "hard power".

Taiwan's soft power has also benefitted the tourism industry, the bureau said, adding that the popularity of Taiwanese movies such as "You Are the Apple of My Eye" and the annual lantern festivals might have contributed to the increasing travel interest in Taiwan.