Market Commentary and Intraday News

China's new leaders face tough economic choices

216 days ago

(AP:BEIJING) China's economic model that delivered three decades of double-digit growth is running out of steam and the country's next leaders face tough choices to keep incomes rising.

But they don't seem to have ambitious solutions. Even if they do, they will need to tackle entrenched interests with backing high in the Communist Party.

The cost of inaction could be high. The World Bank says without change, annual growth could sink to 5 percent by 2015 _ dangerously low by Chinese standards. Some private sector analysts give even gloomier warnings.

The ruling party's latest five-year development plan promises reforms in broad terms. But many changes could face opposition from China's most influential factions _ state companies, their allies in the party, bureaucrats and local leaders.

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