June 11 (Bloomberg) -- Secretary of State Condoleezza Rice said the potential for democratic countries in Asia to combine their clout might provide a counter to China's growing power.

Allies to the U.S. capable of accomplishing that include Australia, India, Japan and South Korea, Rice wrote in the current issue of the journal Foreign Affairs.

``Although many assume that the rise of China will determine the future of Asia, so, too -- and perhaps to an even greater degree -- will the broader rise of an increasingly democratic community of Asian states,'' Rice wrote. ``This is the defining geopolitical event of the twenty-first century, and the United States is right in the middle of it.''

The U.S. and Europe have criticized China's human-rights record, including the treatment of dissidents at home, as well as the country's ties with autocratic governments. China is the world's fastest-growing major economy and the second-largest foreign owner of U.S. debt, holding $491 billion in Treasury securities as of the end of March. Only Japan held more.

Rice said while the U.S. has concerns about China's military buildup, it needs to work with the communist regime on strategic problems such as North Korea's nuclear-weapons effort. She called the proposed Northeast Asian Peace and Security Mechanism a step toward a regional security forum.

While the possibility for sustained cooperation exists, Rice wrote that worries persist about China's capabilities and intentions.

Chinese Weapons

``The U.S., along with many other countries, remains concerned about China's rapid development of high-tech weapons systems,'' Rice wrote. ``China's lack of transparency about its military spending and doctrine and its strategic goals increases mistrust and suspicion.''

Rice praised ties with India, while saying nothing about a faltering proposal to share nuclear technology with the country. The U.S. has a ``vital stake in India's rise to global power and prosperity,'' Rice wrote, with relations between the two countries that have ``never been stronger or broader.''

The secretary of state made limited references to energy in her assessment, saying for the U.S. to remain the ``engine of global economic growth,'' it must find more reliable and ``environmentally friendly'' energy sources.

Rising demand for oil from China, India and other developing nations is helping drive prices for crude to record levels. Oil futures reached $139.12 a barrel on June 6.

Rice last outlined her views in Foreign Affairs in 2000, before President George W. Bush took office.

Looking at other areas of the world, Rice said the U.S. is committed to spreading democracy in the Middle East even though those efforts have run into difficulties.

In commenting on the instability and violence in the Gaza Strip, Rice suggested that Hamas, the militant Islamic organization that rules the Palestinian area, isn't acting as the democratic institution officials promised when elected.

And Rice said that Fatah, the rival faction led by Palestinian Authority President Mahmoud Abbas, also has work to do. Fatah hasn't yet been ``a legitimate, effective and democratic alternative to Hamas,'' she wrote.

To contact the reporter on this story: Nadine Elsibai in Washington at nelsibai@bloomberg.net.

Last Updated: June 11, 2008 12:36 EDT