But, based on my own observations, this reform has nothing to do with the creation of a large, economically independent middle class or helping the people.
It is not a reform of their government form towards freedom, it is a reform of their economy towards economic independence and hegemony.
What they have done is to ingeniously find a way to fund their communistic...which is evolving more and more into a fascist, totalitarian regime. The Marxist and Maoist models failed. They saw very starkly what happens when that economic failure is ongoing and systemic...the regime and the entire system fails like it did with the Soviets.
So the Chinese found a way to introduce some open market capital principles into their system. They have done it to lure our investment and money into their system...in essence having the west fund their rise to manufacturing, energy and ultimatley to economic independence. Once they reach that critical mass and become independent...they will be in a position to nationalize it all, cut us loose, and hurt us tremndously economically in the process.
I have seen them put on quite a show for visiting American CEOs and political dignataries. The people really benefiting are the old members of the party which represents 7-9% of the population, and their military and political establishment. The problem is, that this 7-9% of 1.3 billion is a big number...close to 100 million.
100 million well off, elite, ruling people can put on quite a show...whole cities, or large suburbs of major cities are outfitted for display. Entire manufacturing complexes and sectors are equally outfitted. American are impressed and salivate over the cheap labor now and the promise for a vast emerging market potential and so they throw more and more money at it. But back in the hinterlands, the masses work for pennies an hour in miserable conditions.
The ruling elite there have no interest in helping those masses rise. Those masses are the ticket, via cheap labor, to the PRC's rise. So there will be no huge market potential under this sytem...just a fly-trap to bring in western monies.
The only way those massew will rise is when they rebel. In order to do that, the economic, political and military rule of the elite communists must somehow be broken. Right now, we will have to bankrupt them to do that...and I believe we still can if we have the will. Otherwise, sooner or later it will come to a shooting war IMHO.
Sorry for the length.
A massive revolt will creat whole bunch of warlords with nuclear weapons. That just makes the world much much more dangerous.
Besides, I don't think Americans will put up with the severe rise in prices if we cut off trade with them. I am more in favor of FAIR trade.