People have been predicting the collapse of the Chinese system for quite a while now - I remember around the time of Tienanmen there were a lot of "pundits" that China needed to follow Russia's path towards political freedom - otherwise its model will fail - economic freedom without political freedom would fail
If you look at the graph below http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=ny_gdp_mktp_cd&tdim=true&dl=en&hl=en&q=global+gdp#!ctype=l&strail=false&bcs=d&nselm=h&met_y=ny_gdp_mktp_cd&scale_y=lin&ind_y=false&rdim=region&idim=country:CHN:AUS&ifdim=region&hl=en_US&dl=en&ind=false
You will see that the GDP of China and Australia at around 1990 was not that different.
I think we all agree that the GDPs are not similar now
I suppose one day those pundits will be right, but I suspect by then China's GDP would be the largest in the world.
I certainly agree that many of the investments are over doing it - but when you have 1.4 billion consumers getting richer by the day, It would not surprise me if those under utilised fast trains and apartments will find users and buyers
But I also ask the West excessive spending on consumer goods any more prudent - all those millions of plasma TVs it the tip any more use in the long term ?
