The opening-up of China and the reforms pursued by its leaders since 1978 have brought about astonishing economic progress. The Chinese economy has become the third largest in the world, after the US and the euro area. China’s GDP per capita in real terms has undergone an 18-fold increase, massively reducing poverty and increasing purchasing power. But economic development has brought its own challenges, such as income inequality and environmental degradation. The authorities are increasingly responding to the concerns stemming from these problems and have made their resolution a policy priority.