This is CBS Eye in the World.

I'm John Batchewith, Gregory Coppley, Defense and Foreign Affairs, the publisher and editor.

And we go to China.

The news there is bleak for the Chinese economy, the so-called Miracle Chinese economy.

It was built on a business plan that is now profoundly identified as a failure.

It always was, but living on credit that they made up with IOUs for ten or twenty years

and having a willing audience of what should have to say, avaricious outsiders, foreigners.

Coming into thinking, look at the profits we can reap from this central government.

Well, that's all gone.

Foreign investors are either leaving or have long since departed.

Hong Kong has collapsed in mood, in confidence, in credibility, in courts.

And right now Xi Jinping watches his rival.

The rival he was opposing in 2012 when he was made General Secretary, Lika Chang, was then

premier.

A man seen as a reformer, such as you can use that word for a Chinese Communist Party member,

is dead of a heart attack under unusual circumstances, but in any event that was Xi Jinping's rival.

A man who could have devoted himself to an economy that makes sense, maybe not a miracle,

but one that had opportunities.

Right now, the economy is collapsed.

And the presumption was, when the economy collapsed, that Xi Jinping would lose power.

Well, not so.

Because its Gregory has led me to understand these many months of our conversation about

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