But with the Asian financial crisis, that's really not looking good either . For one thing, there's a lot less capital investment in China due to the crisis . Much of the capital flowing into China in past years came from Hong Kong, Taiwan, Japan, and other nearby areas . But these areas have all been hit by the Asian flu, and they don't have as much capital to invest as before . Furthermore, China will be hurt by the devaluations of neighbors' currencies .
Devaluation makes exports from Thailand, Indonesia, Korea, etc .
And further, as neighboring economies sink into recession, they will be purchasing fewer exports from China . The bourgeois press notes the ill effects of China's privatization, but they regard it as mostly unavoidable . We are all for modernization . But the transition going on in China is capitalist modernization . Yes, China is getting new buildings, new roads, new machinery .