Walking the Talk

"The Economist"magazine posed the question, "Can China's leaders revive the economy and reform at the same time?"  I believe that China has advanced as an authoritarian regime to near it's maximum by taking advantage of inexpensive and abundant labor.  Now having reached a level with labor more expensive and better educated the authoritarian grip will have to be relaxed or it gets in the way of  further growth.  This means that capital is allocated by markets, not cronies.  The rule of law and property rights need to settle in and take over from arbitrary rule so that investment can be confidently made.  And finally the free exchange of ideas is required to foster creativity.  All of these issues are an anathema to authoritarian regimes so I do not fear China as an economic power since their leaders will hold them back.