China is preparing to surpass the United States as the world’s largest economy, in purchasing power parity terms. Already its economy is 80% the size of ours, and if current growth rate differentials persist, it will take China only about four more years to surpass us. At market exchange rates, China’s GDP is smaller, and is expected to remain less than ours until 2028. This is hardly surprising.

2014 has already arrived in the People's Republic of China and, while the occasion is celebrated far less there than here in the United States, China's 1.3 billion people will enjoy a public holiday on January 1st. Following a busy, intriguing 2013, the break is welcome: The first year of Xi Jinping's stewardship was an eventful one in the country, and as 2014 begins China faces a number of issues that, in the aggregate, pose a threat to the country's stability.

December 26 is the birthday of Mao Zedong, and 2013 was a particularly important celebration. This year marked the 120th anniversary of Mao’s birth. In celebration, Xi Jinping and Li Keqiang visited Mao’s mausoleum in Beijing and also attended a symposium on Mao at the Great Hall of the People. At the symposium, Xi promised to raise the banner of Mao Zedong Thought “forever.” However, Xi also cautioned that Mao, like other “revolutionary leaders” were “not gods, but human beings.”

Today was the 120th anniversary of Mao Zedong’s birth, and as the event is celebrated in grand style in Beijing and around China, images of the Chairman are even more ubiquitous than usual this week: A rumored $2.5 billion was invested in celebrations in honor of the figure whose portrait watches over Tiananmen Square and is fastened to the gate of the Forbidden City.

Japanese Prime Minister Shinzo Abe visited a controversial shrine to World War II dead, including 14 convicted war criminals, ignoring U.S. advice against gestures bound to strain already tense relations with neighbors China and South Korea. Abe told Japanese news media the visit was intended "to report the progress of the first year of my administration and convey my resolve to build an era in which the people will never again suffer the ravages of war."

China's leaders bowed three times before a statue of Mao Zedong on the 120th anniversary of his birth Thursday in carefully controlled celebrations that also sought to uphold the market-style reforms he would have opposed. The approach underscores the delicate balancing act the Communist Party leadership — installed last year — has to perform in managing perceptions of Mao's legacy.

In the early hours of Saturday morning (Beijing time), a Bolivian telecommunications satellite launched from the Xichang Satellite Launch Center in China’s Sichuan province, Xinhua reports. The launch, observed by Bolivian President Juan Evo Morales Ayma, was one more example of China’s growing space diplomacy.

On the face of it, China’s recent declaration of an air defense identification zone (ADIZ) extending to territories that it does not control has nothing in common with America’s arrest and strip-search of a New York-based Indian diplomat for allegedly underpaying a housekeeper she had brought with her from India. In fact, these episodes epitomize both powers’ unilateralist approach to international law.