won't happen.  as for the 7% economic growth rate, it is produced by shady numbers, following unethical guidelines, to give the country face.  yes, china produces most of the world's cheap goods, but only because the rest of the world allows them to.  once the rest gets irritated enough by the constant lies, human rights violations, political climate, and instigation, they will close up shop and move to one of the other economically poor nations for cheap labor.  and there are hundreds of those said countries that would love the world's business.  yes china is investing vast amounts of its own wealth into developing countries, like the ones in africa.  but, those resources should have been better spent at home.  health care, education, education, education, the aging population, education, cleaning up the environment, education, domestic infrastructure, education...  i personally believe china is slowly killing itself from the inside.  unless drastic change happens, it won't stick on it's current path to what it calls "development."  the chinese people will only buy this BS for so long...

With the way things are going? Probably. I don't have much faith in the rest of the world keeping them contained.

The buy-up of resources is China's only claim to fame. The fact that China is the worlds factory means nothing. Say you're in the US, you need some plastic thingy, you order it from China, job done. But there is nothing going on in the Chinese factories that cannot be done anywhere else in the world. The west isn't relying as much as it is exploiting. And the current trend is to move production elsewhere. 

"Industrial Power" only takes a country so far. Intellectual Development is needed to go beyond that. It is possible to do that in China, but the education system just doesn't promote it. It doesn't matter if you can do difficult equations if you've never fixed a flat on your bike. It doesn't matter you can recite some poems written by a once great leader if you have never tried to paint something. 

Would the world tolerate such thing? I doubt it!

China have some huge problems waiting just behind the door:
  * Have a look at the age pyramid. Who is going to pay for the retirement and the care of old those soon-to-be-old people ? How does it work when 50% of the population is retired ? "Papy boom" is a already a problem in Western countries and Japan, by which miracle China would avoid this ?
  * Where's innovation in China ? China is so far good at exploiting an existing market until it dries out. But creating new markets, ouch. Always following, never leading. It was okay because China was catching on, no middle class, etc. But it's not true anymore. The education system is doing a terrible job at addressing the innovation problem.
  * China's growth is largely made at the expense of the environment. It's a trick you can pull once, not twice. Cleaning, or just polluting less will cost a lot. And ho surprise, China won't produce for cheap anymore.
  * Property bubble, public debt and corruption are like termites in a wooden house.
  * China does not inspire other nations, it does not propose a vision that goes beyond the border of China. Who dreams to be Chinese ? Talented Chinese flee abroad whenever they can, they can't simply flourish in China.

Just a comment on garments production, Benneton opened factory in East Europe where salary is lower now than in China, also I know some sofa fabrics factories that moved from China to other Asian countries.

In my city in East Europe Chinese owned clothes shop is now selling only garments produced in Turkey. Turkish price is maybe 2-5% higher but quality is much better.

But another thing is that China is popular to search for cheap products without checking other countries so it will continue to develop, and domestic market is stronger.

I forgot to answer the question.

Yes, it will dominate the world in numbers, but on the inside I think nobody living in China would be able to brag that they live in number 1 country in the world when they consider living standards of all levels of population.

By what means can China dominate the world?  There are only two ways to world domination: brute force via military dominance or by cultural dominance.  Usually it takes both.  The notion that they can do it by buying up everything is not viable, no nation is rich enough to buy their way to world domination.  China's military is nowhere near powerful enough to displace the U.S. and cultural dominance depends on a country having a culture in the first place.  Besides that, I doubt China even has the desire to dominate the world.  Their hands are full just trying to contain the domestic problems.

Won't happen. Why? Too many competitors for one. Second. Until the Education and Legal system changes in China, China will only be able to copy. You can copy only so much. Copying means being behind someone who is obviously better. Even then, China may not dominate. India's population will overtake China's by 2020. Although China's GDP may overtake the US's by 2025. GDP is only part of the measure of a wealth of a country. It measures the value of Goods and services produced. China is not yet a consumer oriented economy. My fear is that the old boys in Beijing will think they can go to war to get dominance. In that case the world  as we know it ceases to exist.

"Will China dominate the world?" No! I agree with the comments by Dr. Monkey,Donnie and Scan. Well said.

If Chinese workers ever make 8,000 to 15,000 for Mcdonalds and factory jobs then I see a Chance. That means that China is rich enough to do anything, but yeah it isn't going to happen.

China will never be a true Superpower, as I agree with all the reasons posted here so far. Also, like to point out that the old USSR was a possible candidate for Superpower status, and we know what happened there...

Its not just economic/military power that makes you the leader in world, its the values/ideas/culture that you bring to the world, and what's China, really, got to offer? Sweet f&*%$ all, I'd say

Won't happen, China offers no hope to people and you need the will of the people and their support to be a super power. Say what you want about the USA, but until the 60s many people saw it as a beacon of freedom, whether or not it really was, so they supported it. 

China may be able to control its own people, but it can't control the rest of the world and can't lead them.