Journalist and author Philip Pan appeared on the Bill Moyers show here. He also put forth his answer to the questposed on the comments blog on the Bill Moyer's website. The question "Will Capitalism Bring Democracy to China?" here
“I think we have this assumption in the West that capitalism, that free markets lead to free societies, that capitalism will lead to democracy in China, that it’s almost an automatic process. Once income levels reach a certain level there, that this political [change] is going to happen in China, just as it did in other parts of the world. My argument would be that it’s not automatic, certainly. We’ve seen 30 years now of strong economic growth, and the [Communist] Party is arguably stronger now than it has been ever in these past 30 years. The Party has been able to use capitalism to strengthen its hold on power.
At the same time, though, the party has retreated in many ways. People have much more personal freedom than ever before. Because so many people have been lifted out of poverty, they have many more options in life. So it’s a mixed picture, but I think it would be naïve for policy makers to assume that this is going to be an automatic process, that we just have to continue to trade with China and the political change is just going to happen.”