It is increasingly accepted that China’s growth model, which served it very well in the 1980s and 1990s, reached its useful limit during the past decade. As a result, although China continued to post spectacular GDP growth numbers, this growth came with a cost—unsustainable imbalances and even faster growth in debt. With China’s new generation of leaders formally taking power in early 2013, it clearly must restructure its development model to achieve a very different kind of growth. A Chinese rebalancing is inevitable and the most interesting question is how it will occur.