(L) Xi Jinping greets the media at the Great Hall of the People on November 15, 2012 in Beijing, China.
(L) Xi Jinping greets the media at the Great Hall of the People on November 15, 2012 in Beijing, China. - 

On China’s new rulers to-do list: Tackle the nation’s widening wealth gap, clean up decades-worth of environmental neglect, and straighten out the kinks in the economy.

"The first and most immediate challenge is how to handle a slowing economy," says Patrick Chovanec, professor at Tsinghua University’s School of Economics and Management. "There are a lot of people who would like them to respond with stimulus and help pump the country back up, there are others who argue that what’s needed is more reform; even if that means slower growth in the short run."

If the new leaders choose a path of economic reform, says Chovanec, that will mean a transfer of capital from a public sector full of giant state-owned enterprises to the private sector, opening up China to more market competition.

 

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