“The incident sends a clear signal to China.. With the U.S. strategy of refocusing on the region, it is already making inroads in Myanmar. It also acts as a reminder that the public diplomacy of China still leaves much to be desired.”

“When you don’t really have efficient soft power in the countries which you want to become part of your geopolitical arena, you need to pay for their loyalty,” said Preyherman, of the Discussion and Analytical Society.

If the Confucius Institute's activities here are a benign example of China's soft power, some strategic analysts are more pessimistic about its effects more broadly in South-East Asia and beyond. The US Council on Foreign Relations has pointed out that many authoritarian and developing nations are looking to China as a model for a non-democratic path to economic growth.

This was smart power. Genius, really. In 2007, 8 out of the 10 countries in the world that viewed the United States most fondly were African. And it can’t be a bad thing for America to have friends on a continent that is close to half Muslim and that, by 2025, will surpass China in population.

The power of many can accomplish more than any one can do alone -- and that distinction is different than the traditional classification of hard and soft power

India is in an enviable position in Southeast Asia as it can exercise leverage through its soft-power, a missing strand in strengthening ties with the countries of the Association of Southeast Asian Nations (ASEAN). A soft power approach however requires investments in institutions, through which India and Southeast Asian countries can strengthen their diplomatic outreach and understanding.