I dont entirely agree with his views on China. I think China is in for troubled times in the future. Reason?
A consumer driven middle class is an autocracies worst nightmare. If the Chinese middle class continues to grow, the Communists will not survive. And "smooth transitions to democracy" just dont happen, even with the best will in the world - ask Gorbachev.
As the % of middle class people grows, it will eventually reach a tipping point. And like a titration experiment, things will change very quickly. The autocrats will not be able to keep up with the demands of the people for a greater say and more freedom. There will be a revolution and in a country the size of China with many different ethnic provinces, it will split into many different countries ala USSR. Some of the countries will probably do well long term, others wont.
What does this mean for the economy? It means a short period of unstability and uncertainty, causing a short sharp shock to the markets. What happens afterwards depends on how things pan out.
But the idea that China, as it is today, will get more powerful and the communists becoming a major world force is a fantasy.
The nightmare scenario (for the Chinese) is the communists refusing to go quietly and using military might against there own people - thus turning a quick transition into a long drawn out devastating process.