Abstract

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China has embarked on structural reforms with adjustments to the economic model which is expected to be more rational. Indeed, the government hopes to shift the economic foundation to robust personal consumption and the services sector as the previous model led to environmental issues and concerns over use of excessive debt financing. Developing free trade zones, reforming state-owned enterprises and building the country’s social safety net (e.g., pension reform), among other measures, will ensure that China remains the locomotive of global economic growth during this critical transition.