Having emerged from the financial crisis in relatively good shape, China has arrived at a crossroads. In the aftermath of such a watershed event, China is facing a greater urgency than ever before to restructure its economy and transform its economic growth pattern. During the recently concluded National People’s Congress (NPC) and Chinese People’s Political Consultative Conference (CPPCC) sessions in March, extensive discussions relating to economic restructuring and ways to curb the soaring housing prices topped the agenda, reflecting the priorities of China’s economic planners.

For the record, such talks about transforming the economic development model are not new at all. But the vastly different present day situation leads us to believe that there is much more credibility and motivation behind the political rhetoric this time. The severity and reach of the recent financial and economic crisis has brought about a new world order that China can ill afford to ignore.