It would be crazy to bet against China's success in the long run, said Capital Group's Michael Thawley in a keynote address at Morningtar's Investment Conference.

Thawley, senior vice president and international adviser, Capital Group, warned that political disquiet and increased national consumption were challenges for investment, saying that the Bo Xi Lai incident encapsulated many issues within China.

He said "the internal problems China faces are as bad as anything we have seen since Tiananmen Square."

"We know very little about the ruling communist party and the episode exposes the corruption within the party," said Thawley.

"Consumption reforms need to be done fast but done well, and if not handled correctly could see us a lot worse off."

Thawley also said that he was more optimistic about the United States than any other country, saying "the united states will be a safe haven as people become wary about the problems in Europe and China."

"I have confidence that the United States will recover faster than any other country," said Thawley.

He warned that "our expectations have to be sensible though, the United States rarely does anything in one big bang, and we can expect more piecemeal reforms."

Thawley is also a vice president and principal executive officer of Capital World Growth and Income fund, vice chairman of American Funds Global Balanced Fund and executive vice president of New Perspective Fund, EuroPacific Growth Fund and New World Fund.