The Dalai Lama is the reincarnation of the Bodhisattva of Compassion. A bodhisattva is a person who has reached nirvana and freed themselves from SAMSARA (cycle of reincarnations), but rather than achieving PARINIRVANA, upon their death they choose to re-enter SAMSARA in order to return to earth to help guide others down their spiritual path to enlightenment.
The Dalai Lama was, until 1959, both the political and spiritual leader of Tibet. He was the people's leader in all aspects of their life. After years of threatening actions China took control of the peaceful nation. From 1949-1959 the Dalai Lama and His government tried to work with the occupying forces of China, but to no avail. Eventually, with His life being threatened, the Dalai Lama had to flee his country. (He fled dressed as a soldier)
PANCHEN LAMA The Panchen Lama is the second in command of Tibetan Buddhism and Tibet. His most important task is to search for the reincarnation of the Dalai Lama upon the death of the Dalai Lama. The Panchen Lama leads a search throughout Tibet until the young child is found. The Panchen Lama is also a bodhisattva, he has chosen to re-enter the cycle of SAMSARA in order to help others on their path to enlightenment. It is one of the Dalai Lama's duties to lead the search for the reincarnation of the Panchen Lama.
In May 1995 the Chinese government abducted the young Panchen Lama and his family. They have not been seen since. Since the abduction the Chinese have installed and began to educate their own "Panchen Lama". Their hope is that this new Panchen Lama will be pro Chinese. China's initial interest in Tibet was military. The passes leading through Tibet and the Himalayas were considered crucial for the defense of China's western borders. In addition, billions of dollars of minerals are available in Tibet. These minerals would help to alleviate China's dependence on importing these minerals.