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Scholar: Challenges to China’s Economic and Social Transformation

On July 8, 2013, Chi Fulin, President of the China Institute for Reform and Development in Hainan Province wrote a commentary for China Business News entitled, “The Challenges and Trends in China’s Economic and Social Transformation.”

Chi stated that it was his understanding that the new Chinese government has established the goal of doubling China’s per capita GDP and per capita income by 2020. “Currently, both the international environment and the China’s domestic economic and social transformation are right in the middle of complicated, profound changes. Three key elements will determine whether or not China can achieve this goal. The first is whether China can objectively handle the challenges it faces; second is whether China can seize the opportunities available to it; and third, the key is whether China is able to speed up transformation and reform.”

Chi identified three challenges to social transformation: (1) the gap between rich and poor is quite conspicuous; (2) the social structure is irrational. So far, according to the National Bureau of Statistics, China’s middle-income groups account for about 23 percent [of the population]; and (3) as a result, social conflicts and social risks continue to increase.”

Source: China Business News reprinted by Finance (Jingrongjie), July 8, 2013