China Returning to Maoist Roots

The fingerprints of an increasingly Maoist approach can be found on other recent policy developments, as well. The tightening of rare-earth export regulations effectively reclassifies the metals from economic to strategic resources -- a move straight out of the Maoist playbook. China's more-assertive foreign policy of late, particularly during its recent standoff with Japan over the disputed Senkaku Islands, is in stark contrast to its previously low-key approach. The recent rise in interest rates, the first in three years, may also be a harbinger of a more-aggressive monetary policy.