According to numerous pundits, China is an economic superpower on the verge of flexing its military muscles. However, before China can be a great power it must deal with a myriad of internal problems. So before the alarm bells go off, beware of media hyperbole.

For someone who has visited China twice (2000, 2006), I've learned to take the media and political rhetoric with a grain of salt. First, years of economic growth aren't as stunning when one finds out that the population is growing, and more rural families no longer abide by the one-child policy.

Next, in order to better understand a society, one should experience the realistic images of rural and urban life, and steer clear of sanitized tours. On both of my visits, I stayed with Chinese hosts and experienced real impressions of many areas of Henan province, which is southwest of Beijing. The current glamor and glitz of Beijing 2008 represents only a minute part of the real China.

On the second trip, I found that some facets of China had changed, some had remained the same, and some aspects had worsened. I noticed that there had been more investment in transport infrastrucure, and manufacturing. Some of the airports and highways had improved considerably.

However, most regions I saw were very polluted, which makes this problem a ticking time bomb. I also observed that many buildings were run down. Some newer buildings were uninhabited, and there was a sense of haphazard growth. Many of the buses, trains, and other vehicles were old. In many areas, traffic was very chaotic due to almost non-existent traffic management.

Although coastal development is advancing, there is grinding poverty in the countryside and interior cities. However, there are more motor scooters that flow along with the bicycles, and cell phones are ever present. China is gradually evolving into a consumer oriented society. Yet who is benefiting from this export-driven growth?

I found out that much of the power and wealth derived from a trade surplus goes into the hands of businessmen and legions of government officials. Much of the money is reinvested into primary and secondary industries to fuel productivity and exports. In addition, foreign nations get cheaper products, while China benefits from foreign investments and theft of intellectual property.

Unfortunately, modest funding goes back into assisting ordinary Chinese. Indeed, there is a growing gap between the middle to upper class, and the large masses of the poor. Consequently, rising crime and social unrest occurs when rising expectations collide with reality. I was informed that there is growing underemployment and unemployment for a growing labor pool.

In addition, corruption is rampant within the business class and civil service, which can generate a cynical, or fatalistic resignation amongst the majority of folks that aren't connected. Apparently, China's mixed breed of capitalism and market socialism lacks a linkage to transparent values. Individuals still can't buy or sell property. The government has the power to grant parcels of land, as well as the power to expropriate property.

In order to get things done, palm greasing is often required. Starting a business, or getting a quality education require connections unless one belongs to a sector of the privileged classes. In order to attain higher goals, folks must be clever and connected. Moreover, aspirations for a better life are beyond the grasp of the vast majority of people. Most of the benefits we take for granted in the West just aren't available to most Chinese. It is very difficult for ordinary Chinese to get permission to travel outside China.

Equal access to education remains a distant hope, because there aren't enough schools, and competition for even middle school slots is ruthless. Most folks attend school only through the elementary, or middle school grades. That could be a steep challenge to overcome if China wants to eventually become a developed country.

As I visited villages and township enterprises, it was similar to reaching back to a time of dirt floors and dirt roads, older machines, ramshackle buildings, and minimal utilities. China is still a nation of villages, and these hardworking folks have little to show for their blood, sweat, and tears. Farmers and laborers toil, while the communist government tries to control every aspect of their lives.

In some ways, there are many China's, but if you dig deep enough there are mainly two China's. A minority of Chinese enjoy the good life due to the majority of workers that struggle daily to survive. Although China can feed itself, it has monumental problems to confront over the next several decades.

China could become a great nation if the communist system was dismantled and replaced with greater democracy and freedom. China could solve its problems if the political leadership would stop looking over the shoulders of its citizens. It would help if the government would trust that the many ethnic groups in China could handle democracy and natural human liberty.