Mr. Ross Terrill in the NY Times notes:

China welcomes some foreign business but still fears domestic entrepreneurs. The country ranks high on global lists of gross domestic product, foreign direct investment and exports, but its legal system is unreliable, making capitalism at times a difficult game to master. Although China’s per capita income is double that of India, China is only 37 percent wealthier. So it’s no surprise that the World Economic Forum’s most recent Global Competitiveness Report, which takes into account the rule of law and open flow of information, was warmer on India’s prospects than on China’s.

To read more:

http://www.nytimes.com/2006/09/09/opinion/09terrill.html?_r=1&th&emc=th&oref=slogin