Hedge Fund manager Jim Chanos, famous for shorting companies, particularly Enron, still has his doubts on China. While I frequently criticize the West for its irresponsible overleveraging, countries in Asia are either not immune to the global crisis, or are fueling their own economies with easy money. In China, it's using real estate bubble blowing to contribute to GDP. In Japan, it's currency manipulation to maintain exports.
Nouriel Roubini has speculated that the Chinese Yuan could replace the US dollar as a world reserve currency. I have my doubts that another nation's fiat will be the replacement of the US Dollar after the current fiat system breaks down. The US won't allow it. You know why? No other country in the world has the gold reserves that the US has. The US need only go back to some sort of gold standard to ward off any currency challenge. Gold always triumphs over empty IOUs.