The rapid pace of economic development in China over the last 30 years has begun to expose a new set of economic and social challenges. To deal with these challenges, China’s leaders will need to employ a new set of policy tools that may be very different from what has been successful in the past. In addition, China’s leaders must adapt to the growing influence of a broad array of non-state actors. Making these adjustments in the midst of a major transition of China’s political leadership will be no small task.
On May 1, the John L. Thornton China Center at Brookings and Caixin Media hosted a conference examining China’s major economic policy challenges, the substance of economic reform measures and the issues concerning their implementation. The first panel examined the reforms China should adopt to avoid the middle-income trap and the growing role of civil society in encouraging economic reforms. The second panel focused on the priorities for significant structural adjustments to address key issues such rising labor costs, low household consumption, rapid urbanization, inefficient domestic investment, and international competition.