Amongst all the recent hyperbole regarding China's rise as an international economic power and the potential of it's industrial and consumer market it is sometimes difficult to separate the facts from any over-hyped promise. The validity of Chinese economic growth estimates are questionable as they are not subject to the normal review processes of international economists. Raw data is often not available, though the situation is improving.

However it would be wrong not to recognise China as the most significant fastest growing consumer market in the world. Yet we are willing to go on record here as predicting that will be inevitable major hiccups on the way to China becoming the leading Asian economy in two decades or so. These hiccups will not be enough to sabotage China's long term rise, but they will be more than enough to devastate foreign and local business players alike.

China is the most populous country in the world with a population of 1.3 Billion. Simply put, around one out of every 5 people on earth lives in China. China can still boast the greatest civilization of any time in world history. At it's height the Chinese empire was responsible for the world's greatest works of art, inventions, and innovations in science and technology. The European Roman Empire at its height never reached the heights of the Chinese empire many centuries prior.

In modern times, years of poverty and failed experiments in political theory have resulted in the overseas Chinese establishing powerful business communities world wide, not only in Asia but also in Western countries. As mainland China opens up and enters the WTO, it is not surprising that mainland Chinese will do for China what they have done for many other economies in Asia like Singapore and Malaysia, and internationally. Add to that the return of internationally trained Chinese professionals back to the motherland, and it would be at least churlish to fail to recognize the potential

China's first phase of wealth is centered around the boom cities and regions of Shanghai, Guangzhou in the South East, and Beijing - the capital city in the East. However the real growth of China can only be fuelled from the provinces and the West. As state controlled industries are opened up to free competition, factories and manufacturing are revolutionizing the Chinese heartland, though of course poverty will not be eliminated entirely.

Much of China's threats relate to the environment. A fast encroaching desert due to inefficent and over farming, now resulting in frequent dust storms in the national capital, air pollution from the use of coal-based fuels and potential overdevelopment are major concerns.

While the administration is making corruption a high priority, it will take many years for the culture of the party cadre to be sublimated.

While much of Asia, including Japan, has experienced lower and even negative growth in the past few years, at times it seemed that China was the only bright economic spot. Government spokesman frequently speak of double digit annual growth, and China has for several years now resisted the temptation to devalue the currency to increase export revenue.

China's business people are well aware of the interest of international business in both investment and access to the Chinese consumer. Market entry involves a host of intermediaries and rules and regulations. Contract negotiations (or more correctly re-negotiations) remain a long and arduous task.