Having suffered large losses in china stocks in the recent past, I have come to respect the importance of the rule of law and relative stability in operating/regulatory conditions of the US and other EU countries. This then creates the sound basis for wealth creation and innovation needed to grow the market based economy
Despite the lack of aggregate demand growth, productivity in existing companies and new industries are created through private sector entrepreneurship, not state dictate.
The main reason that Russia and China are not investable after having paid dearly to learn the unspoken truth. Their markets are just dog and pony shows to put up a mask of global integration. They have little trading liquidity and the banking system that back up the credit market is also too irrational in its interest rate policy and have no transparency. Although Russia is much better than China in its public debt profile, their 70% dependence on oil and gas sector, the Yukos/Rosneft expropriation, and now and having a madman at the helm makes it too risky for stock investors.
Here are good articles on why china’s political economy is probably going into long-term decline.