The idea that China could somehow escape the effects of the worldwide crisis of capitalism - i.e. decoupling ‑ was an illusion that some leaders in China had fostered. Now we see how the integration of the Chinese economy into the world market brings with it all the contradictions of capitalism, first among them recession and growing unemployment.

China's urbanization process has reached a critical juncture, inequality between town and country is producing explosive revolts surrounding the cities. The problem of how to contain these revolts is at the core of policy making and is reflected in conflicts inside the Central Committee of the Chinese Communist Party.