With the pitfalls of another presidential transition in mind, Wen Jiabao, China's premier, headed to Davos last week, ready to prescribe Chinese remedies for global maladies. Tim Geithner, US Treasury secretary, chose the first week of the Obama administration to brand Beijing as a currency manipulator before the US Senate – raising fears of a revival of protectionist legislation aimed at punishing China. This marked a departure from Bush-era China policy, which stopped short of taking this serious step, in spite of ballooning trade imbalances and the Chinese export boom. Now the boom is not exactly a bust, but China is sinking economically as it confronts developmental limits and domestic challenges. Its exports are falling.
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