China’s economy is in for a bumpy ride. But if Chinese leaders implement the right macroeconomic policies and structural reforms, the challenges should be manageable.

China’s growth rate continues to slide. Many observers see its surging debt and housing indicators as signaling an imminent financial crisis and the inevitability of a hard landing. How likely is this to occur, and can the new leadership engineer a more sustainable growth path?

China’s push to expand higher education has spawned new opportunities for corruption that can only be addressed by generating more job opportunities for college graduates.

China will see a rise in banks’ nonperforming loans and increasingly frequent defaults in the bond and shadow banking markets. This process will be very messy but is unlikely to derail the economy.

China’s glut of college graduates may help it become competitive with developed countries in high-skill services and manufacturing, thus helping China escape the middle-income trap.

The standard package of market-based financial reforms will not work until China’s banks are subjected to increased competition.