The Palestinians publicly say they'll relinquish their historic demand for the "right of return" -- Arabs to their former homes in Israel -- in exchange for statehood, another incentive for Prime Minister Netanyahu to make a major concession on West Bank settlements.
Meanwhile, his complicated governing coalition may be fraying. Could a new coalition with centrist, pro-negotiation Kadima, Israel's largest opposition party, make it easier for Bibi to go to China?
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