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China in Transition

For the past three decades, cheap exports and government-led investment have sustained economic growth in China. And in doing so, they have ensured political stability in one of the world’s largest and most populous countries. But leaders in Beijing understand that that model is unsustainable, and they have therefore begun to develop a new economic model, one built on consumption, an expanded services sector and technological innovation. The move from the old to the new will test the Communist Party’s will to reform and shake the very foundations on which its legitimacy stands.

China cannot evolve economically without also evolving politically.
(Johannes Eisele/AFP/Getty Images)
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SITUATION REPORTS0
    South Korean President Moon Jae In (R) and Chinese President Xi Jinping (L) during a welcome ceremony in Beijing, China, on Dec. 14, 2017. Despite attempts to heal old wounds and build a more supportive partnership during Moon's visit to China, Seoul and Beijing find themselves with increasingly divergent priorities.
    Global Perspectives0
      Stratfor Worldview

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