Here is a post by Prof. Donald Clarke on the Conglomerate blog, about the inability to enforce, predictably, any of the corporate governance principles that are on the books in China. This must be a serious limitation on the ability of China to become a major world economic leader as well as a source of hesitancy for those thinking of becoming investors in Chinese companies. Compare this with a recent article referred to by Professor Bainbridge here about the connection between the quality of corporate governance and the economic  performance of a company.