When it comes to economic reform, China's leaders no longer believe that time is on their side. With a new sense of urgency, President Xi Jinping and his inner circle are attempting one of the most ambitious economic and social-policy reform plans in history.
But in any authoritarian country, change creates risk. Consider the scale of the proposed plans. For China to reach the next stage of its development, a much larger share of Chinese-made products now destined for Europe, America and Japan must be sold to consumers inside China. This shift will require a big increase in local purchasing power — and, therefore, an enormous transfer of wealth from large domestic companies to Chinese households.
In addition, China's leaders appear to be on the verge of approving 12 new regional free trade zones that will drive competition and efficiency on a new scale in many economic sectors. They also recognize the need for further liberalization of the country's financial system, a move that will require tolerance for outright defaults on bad loans — and the anxiety and anger that comes with them.