China a "failing state" ? That is a misleading header.
You also said:
"Australia GDP is around $1 trillion with 16 million people, or $60,000 usd per person."
"China GDP is around $4 trillion with 1.3 billion population, $3000 usd per person."
To see whether China has progressed in her economic development, and by implication the living standard of her people, you should be comparing China now to what China was, say, 10 years ago.
No point comparing China to Australia, we all know that Australia is rich developed country whereas China is not.
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