China On The Brink?

DJ McGuire points us to a New Republic article by Joshua Kurlantzick that says the economic downturn might spell the end of China’s Communist government:

For years, the Beijing regime has stayed in power using a basic bargain with its citizens: Tolerate our authoritarian rule and we’ll make you rich. And for years, this seemed to work, leading many China-watchers (myself included) to conclude that Beijing was rising into great-power status. But as the financial crisis shows, that bargain rests on weak foundations. And if Beijing breaks its end of the deal, its people, already holding rising numbers of protests, may well break theirs.

I have always felt that China was going to capitalize itself into Democracy and was one good recession or depression away from changing governments.  Kurlantzick is right in that China’s regime has been built on the promise of riches to the public.  But if the government can no longer guarantee those riches or proves to be an impediment on them, then those in financial power may seek new leadership.

The question is, will they just switch leadership or switch systems entirely?  And if they switch systems, is Democracy the system of choice or perhaps something less appealing to the masses?