Underlining that India and China are to an extent destined by geography to be "rivals", West Bengal Governor and former National Security Advisor M K Narayanan today said Beijing's increasing assertiveness on its part while dealing with disputes is "most disconcerting".

He also said Chinese activities in Pakistan Occupied Kashmir and its "not-so-subtle wooing" of some of India's neighbours to New Delhi's detriment is a matter of concern. Narayanan added that potential for a conflict also exists as competition between India and China for new energy sources intensify.

"To some extent, China and India are destined by geography to be rivals: neighbours with large populations, old civilisations, rich and venerable cultures, and disputes with regard to their borders," Narayanan, who is also a former chief of the Intelligence Bureau said in his keynote address at the annual Australia India Institute conference on India here.