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The remarkable transformation of the Chinese economy in terms of its structure and growth has drawn unprecedented attention from academics, policy makers and businessmen alike. In the past three decades, China swiftly transformed from a centrally-planned to a market-oriented economy, with an economic size just behind the US and ahead of Japan.

Amid commendations for China's economic success offering valuable reform and growth lessons to other developing countries, underlying challenges have been emerging, which constitute long-term risks in shaking China's sustainable success. These...