The official corruption is, I believe, the cronyism being shown for handing out loans by the Beijing government, which has caused the rate of non-payment on those loans to skyrocket. Estimates place between 30-60% of China's GDP to be grounded on bad loans. If you start to foreclose on the loans people go out of work, if you don't foreclose the infrastructure collapses under debt load as investment dries up and the production capabilities are seen as unsustainable. Which they are. The rapid 'modernization' and 'capitalism' introduced in the 1980's has been funneled to those that are well connected with the Communist regime.
The surface affluence still does not address the vast number of rural poor, poor living conditions even in cities, the rapid overpopulation of cities, no pressure to repay on loans, no market pressure to use work-efficient equipment as there are so many unemployed as to make labor cheap, and a slow liquidation of civil society as the information revolution puts cheap, modern telecom and storage into the hands of the unemployed. This is a confluence of crony capitalism, at best, and State directed capitalism at worse, rapid decay of family structure, large movements of populations to anywhere good jobs might become available and the slow undermining of the agricultural base of China by that rapid movement of mostly young and educated Chinese to the cities.
Please, read the whole thing.
Of course, similar problems plague the state of IL, on a smaller, nonlethal scale (one hopes it will stay that way). Cronyism, corruption, half-a$$ed financial management, the collapse of family structure and values... who'd a thunk they might bring about chaos? Is there some way our own small problems can be solved? If so, could the solution for us be applied to China? or is it too late for both?
It does grow harder to remain optimistic about anything.