China's challenges on road to prosperity

Comments on Wing Thye Woo “Avoiding economic crashes on China’s road to prosperity”, 26/07/2010, http://www.eastasiaforum.org/2010/08/26/avoiding-economic-crashes-on-chinas-road-to-prosperity/
The analogue of hardware, software and fuel/power is nice.

I agree that the "software" is likely to be the most important one among the three.

For softwares, China has both severe challenges and blessings, due to its size, speed of growth and its political system.

Challenges come from influences both within the country and abroad.

Blessings is likely in the form of rapidly rising living standards that would allow the government to mitigate domestic political challenges and smooth the political transition processes. How to successfully democratise and what the most optimal path for it is the greatest challenge of all.

That political transition will inevitably be associated and influenced by the state of play in the management of economic growth. In a sense, the interactions between economic management and political transition are likely to be most challenging to China's political leaders.

International challenges are also multi-folds, with the most likely potential challenges coming from hostilities in one form or another to its rapid growth, although from power supply point of view the challenges are not along for China as long as China does its share of responsibilities and obligations in dealing with global challenges like climate change (in which China has probably done more than its share of responsibilities, but it has lacked behind in tactics so a poor impression has been created out of Copenhagen).