John Redwood: Why China now faces more difficult decisions

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John Redwood, chief strategist at Charles Stanley, does not expect either the Chinese economy or Chinese politics to derail the global recovery this year.

There was little fuss when China overtook the US as the world's largest economy, as measured using figures corrected for relative purchasing power. There was more concern in the US as China asserted itself by claiming the nine dash line from Taiwan round to the Paracel islands, seeking control over a series of islands and pushing oil rigs into disputed territory. President Obama announced a tilt of his policy from Europe to Asia, and set about constructing a Trans Pacific Trade Partnership that excluded China. The US keeps several carrier groups in the Pacific area, and seeks to ex...

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