China's new leaders face tough economic decisions

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.

However, they don't seem to have ambitious solutions and 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 per cent by 2015, which is dangerously low by Chinese standards. Some private-sector analysts give even gloomier warnings.

via Business feed http://www.scmp.com/business/economy/article/1067523/chinas-new-leaders-face-tough-economic-decisions