Beijing ponders new expansion formula

Chinese leaders are seeking a new formula for expansion of the world’s fastest-growing economy that addresses the costs of growth such as environmental damage and a widening income gap. They want to switch to a more sustainable mode of development where China consumes and pollutes less.

But they face a quandary. While aware that China’s current model of development, driven by investment and exports, is unsustainable, they fear that recalibrating the economy could result in greater unemployment and political instability. As investment growth slows, the adverse social effects might imperil

the political legitimacy of the ruling Chinese Communist Party, which took power 58 years ago promising to deliver growth and rising prosperity.
Asia Times