I think that China will just end up like a larger version of Singapore. Citizen are free to make as much money as they want but there are strict limit on political power.

As the Chinese get richer the government will be popular (just like anywhere else).

The national myth from which nationalist fervor can be whipped up is one of a once proud world power (or perhaps _the_ world great power) that has been humiliated in recent centuries by the 'imperialist' Japanese and West. This can lead to a revanchist attitude which is obviously uncomfortable, if not outright dangerous, for all its neighbours.

In terms of hypocrisy don't all countries have conflicting interests and make compromises. On the one hand China has had nuclear weapons for decades and can put men in space and probably on the moon in a few years. On the other hand large parts of the country are still in poverty with 3rd world living standards.

The west also makes plenty of compromises between business interests and the human rights agenda.