Under the government of Communist Party General Secretary Xi Jinping, China has talked about the need for economic “rebalancing” (the shifting of power and wealth from state-owned enterprises and local governments to the household sector), but real changes in power relationships have been hard to detect. Reforms to improve labor mobility have gained no traction. Tensions in the South and East China Seas have increased with Beijing’s unilateral declaration of an Air Defense Identification Zone and its deployment of an oil rig in Vietnamese waters. China has achieved impressive GDP growth based on economic reforms and greater integration into the world trading and financial systems since the late 1970s. The size of its industrial and manufacturing sector now rivals that of the United States.