News Summary: Touch choices for new China leaders

AP News
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Posted: Oct 22, 2012 2:01 PM

QUAGMIRE: 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. But they don't seem to have ambitious solutions.

POLITICAL BACKLASH: The ruling party's latest five-year development plan promises reforms in broad terms. But many changes could face opposition from China's most influential factions — state companies, their allies in the Communist Party, bureaucrats and local leaders.

REFORMS: China must promote service industries and consumer spending, shifting away from reliance on exports and investment. That will require forcing cosseted state companies to compete.