China has experienced unparalleled economic growth over the past four decades. However, new challenges are emerging. Agriculture is becoming less competitive. Rural areas do not offer sufficient employment opportunities to retain an active labour force. Geographical and social inequalities persist, while vulnerable people are at risk of falling back into poverty. Environmental and climate change challenges are emerging as a legacy of the past growth model.
This policy note discusses the challenges and opportunities for China to update its development model to reflect the new context. It suggests three priority areas and nine policy actions which China should focus on.