China’s incoming president, Xi Jinping, seems like he is taking office at a great time, after the modern miracle of China’s economic development (even amid a worldwide financial crisis). But things only look rosy in China from the outside. Xi must wrangle with a number of serious problems that threaten everything China has accomplished in recent decades, including extraordinary air- and water-quality problems, widespread corruption, income inequality that would make Occupy Wall Street blush, and troubling product safety problems (the Chinese buy all that stuff China makes too, and they don’t like tainted baby formula either).

Read the story.