You are too naive,Capitalism cant be rebuilt on "democracy".The first thing Capitalists want is "order".
Expectations that China's growth could provide a way out from the current slide to world recession are totally illusory. On the contrary, it is the transition from the international financial turmoil and credit crunch to recession or depression that exacerbate all accumulated contradictions in the Chinese economy and society with incalculable world implications.
Chinese growth is export-led. It cannot trigger resurgences elsewhere; as global growth slows, demand for Chinese goods will tend to stagnate or fall. The main outlet of Chinese exports is the US consumer and now it is collapsing for the first time in two decades
Already the growth rate is revised downwards from 11% to 9% or 7%, or even lower for 2009. Output cuts in aluminum and nickel production are announced after the escalation of the world crisis. The People's Bank of China predicted on October 31st that in the coming two years housing prices would slide by 10 to 30% marking the bursting of the real estate bubble; even more important the Bank revealed its worries about a liquidity crunch affecting severely not only real estate companies but also the commercial banks that have devoted from 20% to 40% of their total loans to the real estate sector. Cuts in the banking interest rates are also an indication of a rather rapid cooling of the Chinese growth rate under the new world conditions. Western analysts like N. Roubini predict the high possibility of a hard landing of the Chinese economy next year.
The Chinese growth, which made it in the previous years "the workshop of the world", is based on the cannibalization of the sectors where the Chinese revolution had expropriated capital (State enterprises, state banking system) to propel an economy led by exports in the world market, not local demand or profit in the domestic market. Strong capitalist development is driven forward on non-capitalist premises (for ex. loans are provided by the State banks without capitalist criteria), and, at the last instance, on over-exploitation of a cheap and vast labor force, disciplined under a Stalinist regime, on behalf of global capital.
Social inequalities between the industrial coastal zones open to the world market and the rural inlands, feed unstoppable waves of inner migration to the cities, rural unrest and continuous peasant rebellions, workers' wild strikes.
China needs a growth rate of 9-10% to absorb every year about 24 million people joining the labor force, and 12-14 million poor rural farmers moving to the industrial urban sector. Any lowering of the growth rate below this mark adds millions of new unemployed and more explosive material for coming upheavals. In a hard landing of the Chinese economy from 12% down to the critical level of 6% (quite possible in the current conditions of the world crisis) amounts to a death blow to any legitimacy, and stability of the CPC bureaucratic restorationist regime.
The CPC leadership is split by a kind of double bound: either they try to keep a high growth rate by concentrating their efforts to the coastal zones and facing all the consequences abroad of the contraction in the US and world market and at home of the disintegration of the inner agrarian heartland; or they cut their links to the world market and turn inwards to build an internal (capitalist) market. Both processes cannot but exacerbate the contradictions to the point of explosion.