The Chinese government is in a confident mood at the moment. But by threatening to impose sanctions on US businesses that are involved in a $6.4bn arms deal with Taiwan, China is in danger of making a serious and counter-productive mistake.
Relations between the US and China are at a very delicate stage. The good feelings generated by US president Barack Obama's visit to China last November have quickly dissipated. In their place have come a series of disputes: about Google and cybersecurity, about climate change, about currency regimes, about Iran "“ and now about Taiwan.
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