For China, the issue largely concerns the design and implementation of the next stage of institutional reforms to sustain economic growth and efficiency, reduce social inequality, remove market distortions, address environmental deterioration, and combat corruption. As China becomes a more urban and elderly middle-income society, the challenge for the new leadership is not only to meet the population’s need for employment, health care, and social security, but also to improve governance and state effectiveness by establishing checks and balances on political power.