A fourth challenge derives from the highly centralized character of China's political system. For three decades, China arguably has been able to develop as quickly as it has because it is a unitary state - not a federal system in which the provinces have significant independent authority - with a single-party regime. This facilitates timely and decisive action in response to perceived needs and opportunities and makes it easier to coordinate multiple components of an increasingly complex system. There are advantages to this type of system, but also risks and costs. One set of risks results from the fact that "all" key decisions must be made at the apex of the system by a relatively small number of officials who have only finite time, attention and knowledge. As China has become more modern and prosperous, it has also become more diverse. Different locales, sectors of the economy, interest groups and other constituencies have diverse expectations of the political system. Keeping the many concerns and requirements straight, and successfully juggling and balancing competing demands, will continue to become more complex and difficult.
As this happens, it will intensify another challenge, namely, the challenge of being "right" most of the time with little to no cushion for error. Systems with distributed authority are more cumbersome, but they avoid single points of failure. The danger of single-point failure increases as the complexity of issues, number of competing viewpoints and volume of information increases. Logically, the chance of mistakes increases as decisions become more demanding. Theoretically, there exists a point in any system at which the system can be overwhelmed by the magnitude of the task. The eurozone crisis may be a cautionary example.
Recognizing these challenges should not be read as a pessimistic prediction of inevitable failure. Indeed, the fact that looming but not yet imminent challenges are already the subject of study, deliberation and debate around the world increases the likelihood of avoiding the most negative or disruptive consequences; mitigating those that cannot be avoided entirely; and capitalizing on the many positive trends toward greater cooperation, acceptance of interdependencies and ability to learn from others' experiences.
Clearly discernible trends point to common interests and opportunities for cooperation as well as to challenges of unprecedented complexity. Whether China continues to eschew active engagement to address challenges at the global level in order to concentrate on domestic problems will shape possibilities for international cooperation. So, too, will actions of other nations that help or hinder China's ability to solve its problems.
