Title: China: how powerful is she?
Headings: 

Content: Corruption is the currency of the Chinese Communist Party. Fundamentally, continued reform is seen as a risk to the Communist Party's monopoly on power. Indeed, China's GDP per capita has now reached the level where one would expect a natural transition to democracy. China's massive foreign exchange reserves, more than $3 trillion, appear to be a sign of great strength. And certainly they give the Chinese government finance for overseas investment, both economically and politically motivated. But these foreign exchange reserves are a costly investment, as they earn a very low rate of return. In fact, Chinese citizens' lives would be much better if they were spent on imports. But Chinese internal politics stop the government from revaluing the exchange rate, which could also provide a stimulus to industrial upgrading. Let's move on now to politics. How powerful is the Chinese government?