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Chinese domestic consumption will still take at least a couple of years to reach its potential and poses a "medium term challenge," UBS economist Tao Wang has noted (See "China's Other Worry: Wage Slowdown").
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The medium-term challenge is more severe.
Fully stimulating China's domestic demand is a medium-term challenge that will take several years, as the government tries to improve the country's flimsy social safety net and boost wage growth.
Now that Western demand has collapsed, stimulating domestic demand is a "medium-term challenge" as China's domestic consumption has traditionally lagged behind its growth, mostly because Chinese non-farm employment and wage growth, while fast, have lagged behind the country's overall growth based on investment and exports.
The groups say while recent events and medium-term challenges remain distinct, "a successful response in each case requires Australia's leaders to work together".
"The European economies face a high level of debt, deep structural medium-term challenges and short-term economic headwinds that we need to confront," he added.
"The European economies face a high level of debt, deep structural medium-term challenges and short-term economic headwinds that we need to confront".
Personally, I think the medium-term challenges for China's government aging, moving from extensive to intensive growth, and political liberalisation are likely to prove far more difficult than the short-term hurdle of managing a soft-landing for property markets while maintaining a respectable growth rate.
The new ministers will quickly be brought up to speed by their colleagues on the short- and medium-term challenges to the NHS budget.
And continued demands for more and better public services in the developing world raise significant medium-term challenges.
In the medium term comes another challenge.
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