I noticed in Wednesday's Wall Street Journal this headline: China Relents, Accepts 19% Rise in Iron-Ore Price. Did they actually think they could dictate the market for raw materials? The really cool thing about free markets is that no matter how big a player is, as long as there are several market participants and more than one source of goods, no one player can manipulate the market for any sustained period of time.
China can't have a free ride- they sell billions of dollars worth of exports every year, then try to get a better-than-market price for their inputs. It'll never happen. They should enjoy the fact that their labor costs are lower than most of the industrialized world, and the business outlook is good for the forseeable future...
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