Brad Setser (another fan of Stephen Roach) has a long and worthwhile post on the China economy "Creditors, Debtors, Partners, Strategic Rivals, Mallaby, Pesek."

For those who either find economics boring, or don’t have the time to read it, Billmon summarizes in the comments:

So here you have the leaders of the world’s last significantly sized communist dictatorship giving huge subsidies to foreign companies to (from a Marxist point of view) exploit their own workers, and lending hundreds of billions to the world capitalist hegemon so it can build satellites to throw artificial meteors at anyone who gets in its way.