China's leading problem

Beijing has emerged from the GFC bolder and more confident than ever, but it must start to manage the leadership transition due in 2012 at a time of economic instability and uncertainty.

China’s National People’s Congress has provided Beijing an opportunity to highlight the past year’s successes and lay out the problems that lie ahead. On the surface at least, China has shown remarkable resilience in the face of global economic crisis. It has posted enviable gross domestic product (GDP) growth rates while keeping factories running (if at a loss) and workers employed. But the economic crisis has exposed the inefficiencies of China’s export-dependent economic model, and the government has had to pump money into a major investment stimulus package to make up for the net drain the export sector currently is exacting on the economy.

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