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.
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.
China has ambitious plans to free itself from its dependence on foreign sources of iron ore. Even so, it is not likely to escape this dependence any time soon.