China’s economic rise has been based on three factors: cheap labour, cheap capital and a benign external environment in which export sales could make up for deficient domestic demand. To maintain the latter, Deng Xiaoping advised that the country should keep its head down and not rattle its foreign customers or regional neighbours.
Hu Jintao and his leadership colleagues have obviously decided that it is time to shed the Dengist caution. China’s global presence has, of course, been...
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