EU- China Forum - Tackling China's Economic and Social Challenges: A Role for Europe

For months, the European Union (EU) and the world have been riveted to the once-in-a-decade leadership change in China. Though speculation abounds as to whether the new seven-man Standing Committee of the Politburo will be reformers or take a more conservative stance towards governance, “China’s new leaders face old and well-known problems,” noted moderator Shada Islam, Head of Policy at Friends of Europe.

The appointed future President, Xi Jinping, and Premier, Li Keqiang, have demonstrated that they recognize the daunting array of economic and social challenges facing the country and have shown a willingness to tackle them head on, she continued.

They have vowed to fight corruption, narrow the urban-rural income divide and deal with environmental issues. Moreover, the new Chinese leadership must strive to meet the quality of life aspirations of China’s growing and increasingly influential middle class.

Finally, there is much pressure to rebalance China’s economic growth model and change from an export-driven economy to one based on domestic consumption, investment and innovation. “The current model of economic development that has demonstrated impressive growth over the last three decades is no longer valid,” she concluded. “It needs to be transformed.”