Rough waters
The diplomatic spat bubbling away in the South China Sea dominated headlines in the lead-up to US secretary of state John Kerry’s visit to China. However, as Kerry heads into the second of a two-day stay in Beijing today, the focus should shift towards another area where the superpowers struggle to find common ground: trade. In March the Obama administration imposed a 266 per cent tariff on some Chinese steel in an effort to stop what it calls “dumping” (selling below cost), which the Chinese deny doing. Such tariffs would become trickier to impose if China gained market-economy status at the World Trade Organisation, something it covets but that the US is hoping to block. Manmade islands aside, choppy waters lie ahead.