This concluding chapter highlights the connections between Chinese domestic politics and foreign policy, and examines new challenges and prospects. Chinese leaders have articulated a grand strategy of peaceful development. However, the international system is full of tensions and instability (Ye, 2009). Chinese society is undergoing rapid modernization and the economy is going through structural transition. The country is facing growing disparities between urban and rural areas, between coastal and inland provinces, and between the rich and poor. Some critics suggest that China’s transition is trapped in unbalanced economic growth without adequate corresponding political reform. The reformers argue, however, that now is the time to conduct comprehensively deepening reform (World Bank, 2012). In contrast with the previous sharp focus on GDP growth, the new comprehensive reform aims at simultaneously advancing political, economic, social, cultural, and ecological development. The new focus will be on the quality rather than speed of growth.
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