As China builds up its war machine it has forgotten one thing. Industrial Revolutions and civil unrest go with rapid growth, which is unchecked. History for tells this and of all countries China should realize this. Yet they have never had true capitalism there and indeed this will be a problematic issue, as it is hard to rule with an iron first and simultaneously enjoy the fruits of capitalism. That leads to an over throw of government.
Of course if they fail to let lose of the reigns a bit they will not be able to continue this growth rate. Indeed the Beijing Club along with their friends and partners in the international financier groups are smart fellows, they must read the writing on the wall. Additionally if they think they can dig out of this mess by having a war and use wartime propaganda and spending on war to save themselves from financial ruin, they may find themselves battling an uncooperative population base with real world, real time Internet World Wide news, along with whomever they choose to fight.
If China moves to squash free speech and freedom of the press or doesn’t take a low key approach to their extended growth, then they will create enemies that abroad and there will be a changing of the guard. You see it has been reported that there is much civil and social unrest in China these days;
There are some tough choices coming up for China and those who have the largest stakes and committed financial assets, as they have other critical issues now. And an 850 Billion Dollar Surplus is not squat compared to what they need to maintain this growth, while keeping up with infrastructure needs. Think on this in 2006.