Why China Liberalized Like Everyone Thought It Would

The CIA factbook says China's GDP is now about 20% larger than that of the US. Why didn't China liberalise like everyone thought it would? Interesting question. This is one I've talked to Luha about often. He's their chief economics person who was a former student at the Kennedy School. They worry about financial markets in which the temptation always in the financial market is for big players to take on unnecessary levels or unsustainable levels of risk. If ever there should be a real estate crisis, they would find themselves bankrupt and they would have been had there not been for the bailout.