[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.

[Torie]

The problem is that to have a reasonably healthy first world economy you need a free information and rule of law economy, non centrally directed. For that to happen, the authoritarian facist Chinese government would have to go. It shows no signs of doing so, and retricts all of the above. Thus China has a second class economy glass ceiling, into which it will be bumping its head.