Editor's View

Appearances deceive

  • Published 25 Mar 2010

US-China ties sour further, but are set to stabilise later this year. The economy sizzles and more liquidity tightening is around the corner. Trade is to show a rare deficit in March, easing pressure on the Rmb to appreciate.

In January, we wrote that US ties with China were headed for the deep freeze (CC January 14 Forbidden City) and, indeed, bilateral ties have cooled considerably since then. In coming weeks, the temperature appears likely to plunge still further.

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