This article on China's detention of artist Ai Weiwei leaped out at me. What on Earth is an economic crime? Is it getting your Keynes mixed up with your Hayek? Seriously though, I can't help but think that this article encapsulates what I think will be a major hurdle for China as it strives to become a first world nation. Outside of the obvious human rights issues, the idea of "economic crimes" has to be very worrisome for both internal and external investors. With the Chinese model of state-run capitalism, it seems as though people are able to run their businesses as they wish until the state decides otherwise. That uncertainty has to have a chilling effect on investment. I simple can't imagine it being otherwise.
Consider Google: They largely pulled out of the Chinese market after suffering cyber attacks from the mainland that stole proprietary data and deciding that they would no longer censor their search engine. Instead, they're investing millions in a German solar panel plant. The 'green energy' industry is something that the Chinese have been very keen on developing. I'm sure that they would have appreciated that investment.
A good example of some of the problems still facing the Chinese is available here. It concerns China's fabulous bullet trains that are the pride of the nation and receiving enormous state support. Unfortunately, they're far too expensive for the majority of the nation to ride. Not that we do much better.
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