China's new economic team must grapple with multiple challenges
China's economy faces challenges that call for bold reforms. But its new leaders are expected to favour status quo and a consolidation of power
China's new economic team, likely to be led by incoming premier Li Keqiang from March, will be confronted with many daunting challenges, domestically and internationally.
In the longer term, it will have to deal with deep-rooted flaws in the mainland's economic system - quasi-state planning and a quasi-market - and worsening structural problems. They include the market-distorting powers of state monopolies, widespread official graft, an unbalanced industrial structure, an ageing workforce and widening wealth gaps between regions and individuals. Together, they point to deepening social tension that could threaten party rule.
Analysts and economists also hope the new leadership - to emerge at the Communist Party's 18th national congress, before taking over the reins of government next year - will revive long stalled market-oriented reform. They say that after three decades of breakneck growth, the economy is reaching a critical point in its development.
Early this year, French bank Societe Generale warned that although China's economic growth would slow significantly, the party would put off decisive action until March, resulting in the likelihood of an even harder landing.