Growing financial troubles among small- and medium-sized businesses pose an immediate challenge to China's tightening economic policy, and reveal a fundamental challenge to its economic model.
The death of Osama bin Laden helps smooth the way for the United States' withdrawal from Afghanistan. This brings new strategic challenges for China and Pakistan, which will become more dependent on each other as a result. (With STRATFOR map)
It is not clear whether China's next generation of leaders will augment Deng's theory, or discard it. It is clear, however, that China is taking on a challenge much greater than a change in presidents or administrations.
China recorded its largest deficit in February since 2004. Though nothing suggests China is inevitably on the path toward consecutive deficits, such a development would be quite significant.
