Two narratives are emerging to describe the re-emergence of China. The western narrative, concedes that China’s economy has grown, but couples this with constant observations that the story is too good to be true and that the Chinese economy is bound to sputter or even collapse. The current focus, after the removal of Bo Xilai, is on the purported fragility of China’s political system. The eastern narrative, however, focuses on China’s strengths, viewing the Bo Xilai episode as a test the Chinese Communist Party has passed. Moreover, rather than producing dictators who cling to power, the CCP is about to install talented, refomist new leaders who could inject fresh drive and dynamism into the economy over the next decade. Both narratives may be wishful thinking. Let us see which prevails.
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