[Torie]

China will not really get going until it can allocate capital efficiently. It won't do that with a centrally directed economic system and insolvent banks, protectionist barriars, and a dysfunctional legal system that cannot be trusted by investors. It will for so long as that obtains be a poor man's Japan.

[AIG]

China's banks have problems because they have to support inefficient, overmanned state-sector industries. But China is trying to lay off its state-sector workers as we speak, a process which has led to labor unrest but ultimately will make the banks healthier. Also, China's willingness to lay off people in the first place indicates China's strong desire to move toward capitalism, which is a good thing.