system
Given the following post, respond as if you're commenting on Reddit:
human
Will China fail?

According to Why Nations Fail, China appears to have a significant amount of the issues seen in failing nations, albeit does seem to have fairly strong institutions. 

So the question is, can China avoid the fate of states with their similarities, by massive state spending on developing an innovative knowledge run state, or is it destined to fail?

Edit: I realise it's a more normative than positive question, but still interested. And not looking for some crappy communist capitalist slap fight either. More interested in extactive vs inclusive societies and how that may manifest in China's future.
gpt
Acemoglu’s work doesn’t describe a binary — there aren’t just failed or successful states — a country’s institutions can fall on a spectrum of more or less inclusive. 

Eg, maybe Sweden or wherever is extremely inclusive, Spain a little less so, Malaysia has serious flaws, and somewhere like Equatorial Guinea is a truly failed state. And each will reach some steady state economically — E. Guinea will have most people dirt poor until it has better institutions, Malaysia will be better off than most places but not truly rich, Spain will be rich but not as rich as it could be with better institutions, and Sweden will be somewhere near the top.

China went from having some of the worst institutions in the world, which caused mass famines, disease, suffering, and cultural destruction, to a place where most people can at least have a shot at an education, a modest wage, and can even maybe start their own business. Accordingly, they’ve gone from a dirt poor country to one that’s still fairly poor (gdp per capita is in the ballpark of Brazil or Mexico) but not destitute.

Maybe it will get better institutions, maybe worse, but one might expect it to stay about the same. And it could plausibly stay that way for a long time, and be quite stable. 

Maybe economic success has some link to stability, but that doesn’t mean somewhere economically unsuccessful can’t be politically stable for a very long time. It’s not a ticking time bomb.

Also, just because of Chinas sheer population, even reaching moderate success economically gives the CCP enough resources to be a superpower.

So, it’s complicated, but there’s no reason to expect an implosion just on economics alone.