Two separate developments in the last week, both involving China, demonstrate the fundamental ways in which international relationships are changing. The first involved China subtly suggesting that it might provide financial support for Eurozone economies in difficulty. The second was the announcement at the opening of the Third China-Caribbean Economic and Trade Cooperation Forum in Port of Spain that Beijing would make available over US$1billion in loans and other assistance for Caribbean economic development projects.

In Europe many economies are in trouble. Greece, Italy, Spain Portugal, Ireland and United Kingdom have had to take drastic action to address high levels of debt and low growth. However, the markets have not been convinced that some of the governments concerned will be able to institute the tough austerity measures they have announced. This is particularly so in the case of Greece and Italy where special pleading by…..