MikeLigalig.com

In an effort to stoke nationalism and distract its people from a slowing economy, the Chinese government has been acting particularly aggressively in the South China Sea, engaging in territorial disputes with neighbors including Japan.

This nationalist stance is no doubt a response to China's slowing economy.

Growth and China's rise have always been tied to the modern Chinese identity. The government is asking its people to accept a "new normal" as growth slows, debt piles to almost 300% of gross domestic product, construction and property companies default, and credit dries up.

But to maintain nationalistic fervor in the country, China has relied on the South China Sea issue.


More at: http://finance.yahoo.com/news/heat-south-china-sea-dangerous-173334527.html