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What development is imperative for the Chinese economy to reach the critical mass for next level of development?

Directions: Answer the question based on the following passage.

As the dragon country preens in the spotlight brought about by its fiscal policies that have catapulted it to the centre stage in global economics, additional proof of its newly founded ascendancy has been brought about by its superseding of Japan to officially become world’s second largest economy. What is causing heartburn to many jingoistic analysts and economists from other nations of the world stage is the knowledge that a large part of this leap in rankings has been brought about by the burgeoning exports that have brought along with them a huge hoard of precious foreign currency. It is indeed a marvel how the President, Hu Jin Tao is managing to keep such an impassive front when anyone else in his shoes would have been grinning like a Cheshire cat that has just polished off a huge bowl of cream. Perhaps he is just one of those unexpressive characters or maybe he is waiting to polish off the last few wrinkles on the fiscal face before breaking into a joyful jig. An indication of the latter came recently when the state media, in a statement released to the world media, stressed upon the need of, and the increasing focus of the ruling junta on more equitable distribution of wealth which would endeavor to include farmers and workers into the explosive growth story.

As of now, the unofficial figures state that the cream of the Chinese society makes approximately seventy times more money on year on year basis than the populace at the bottom of the pyramid. Althou gh official numbers contest these findings, they also do not paint a propitious scenario. The Premier, in his call to action, has been exhorting political and economic restructuring with the balance of the power shifting its centre of gravity ever so slightly in favor of the masses but his viewpoint is not finding many backers in the government and the bureaucracy because these two sections of the society, apart from the various large industrial manufacturing units, have benefited the most from the current polices. In spite of the strident objections, a few steps towards the process of deregulating the economy have come through a subtle and tacit approval of the worker’s strikes in the People’s Republic. Idealistically speaking, the workers own everything according to the party doctrine which precludes the need for them to ever resort to a tool-down strike but ground realities are rather different. However, recent incidents of workers going on strikes for pressing their demands for better salaries have not been met by disapproval from the authorities and the workers have been, by and large, been successful in negotiating better pays and working conditions. The current model of growth is based upon the model of export blitzkrieg which, although has been yielding trailblazing results, has had a major Achilles heel in not being able to stimulate domestic consumption and one can safely presume that the fact has not escaped the attention of the politburo. While the author does not profess to possess any knowledge of the politburo members’ academic qualifications, there is little reason to believe that they are babes in the woods when it comes to fiscal foresight. In the event of a global economic meltdown, what will keep any economy ticking over is a robust domestic demand which can keep the smoke billowing out from the industrial chimneys.