There is a reason to be fascinated by what is going on in China. That nation’s rapid growth is putting tremendous pressure on the world’s resources. This is driving up prices in many areas, from fertilizers and food, through energy and other commodities and on to downstream impacts on construction material costs even in North America.

Yesterday I looked at where China is achieving its greatest successes and questioned whether the economic good times have staying power. A number of key trends within China seem to indicate that, despite the possibility of some cyclical adjustments, the long-term outlook remains positive for continuing exceptional growth. However, it has to be clearly understood that China’s version of a “free market economy” is not the same as we understand that term. Chinese equities are a prime example.

In a list of areas where China is becoming “big”, three of the world’s six largest …