Beijing can't clean up the environment, rein in stock speculation, or police its companies. Why the mainland's problems could keep it from becoming the next superpower
When the bureaucratic machinery of China rolls into action, it is a sight to behold. A mayor announces a plan to reclaim hundreds of acres from the sea and build a massive industrial complex. A few years later, busy factories and roads stretch as far as the eye can see, families are living in thousands of new apartments, and 10,000 workers have launched Phase Two.
This is the side of China that awes the outside world. The mainland's extraordinary ability to mobilize people and capital to accomplish daunting feats in record time is the reason it has averaged annual growth of 9.5% for three decades. It is why China is an export juggernaut in everything from T-shirts to TVs, has the world's fastest-growing consumer market, and has amassed enough wealth to snap up South American mineral reserves, IBM's (IBM) PC division, and a big stake in private-equity firm Blackstone Group. Will Beijing complete all of the stadiums, expressways, and hotels in time for the 2008 Summer Olympics? Count on it. It's also a decent bet China will achieve its goal of winning the most gold medals.
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