Do You Need a Chinese Bank Account?

I agree with Bryan that China is not as stable an economy as one might think, but I also agree with Charles that they are, overall, headed in the right direction and have a good long-term future. An economy that was one of the two wealthiest countries in the world for about 85% of the last two millenia is not one to be ruled out.

One interesting aspect of the way government officials are selected in China is that it is a meritocracy, although it is not a market-determined meritocracy. They have an elaborate point system and people get promoted based on points. This is a bit like selecting our politicians based on SAT scores - very imperfect, but at least you get the smart ones in office instead of the weird politicians that most democracies seem to have.

But I do think they will face several shocks over the next few decades as they transition from a controlled economy to a free market. I also wonder how they will handle the increasing demands by a more affluent and educated public for more personal freedoms. Singapore and S Korea have managed their transitions well so I suspect China also has a chance to pull it off, although it will be harder for them than it was for the more easily manageable countries.