The scale and pace of China's economic development has been remarkable. But China still faces significant challenges. Official figures showed that prices this year have risen by 6.4 percent compared with those of last year. In addition to the problems caused by rising prices, issues on economic structure should be addressed as well. As China develops and its people change their lifestyles, there appears the need to shift its economic model. This will require the development of new industries, particularly the service industry. Now China's leaders are starting to deal with these issues.