China After Deng

For each of the past seven years, Deng Xiaoping has headed for the Xi Jiao Guest House in Shanghai to celebrate the lunar New Year and enjoy the coastal city's milder weather. This year, the 90-year-old leader is breaking with tradition. Even though Shanghai is experiencing its warmest winter on record, Deng remains in Beijing so hobbled by health problems, including kidney failure, that many wonder whether his doctors will be able to keep him alive for long. "The situation is deteriorating by the week," says one well-connected Chinese economist.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.