China’s momentous year can be divided in two. In the first half, as developed markets floundered, it was the saviour of the world: conciliatory and deferential, reigniting linked economies through the awesome power of government stimulus. In the second, as bigger nations recovered some swagger, it grew pricklier and more inward-looking.
Having set in motion a credit and investment-fuelled recovery to manufacture strong growth in the 60th anniversary year of the People’s Republic, China is beginning to face the consequences.
