No major impediments to the Chinese government ‘re-balancing’ the economy towards consumption and services and away from concrete and steel stuff.
All they need to do is to allow (i.e. one of the joys of being authoritarian) wages to rise at a steady rate and the citizens of China will do the rest. Like most people around the planet the average person in China is quite capable of applying financial resources to improving their lives as they see fit. (Yep – consumer sovereignty – a hate word for technocrats and know-all’s right around the world)
Sure this will put their export industries under pressure but providing they can maintain their trade balance neutral or close to it, those industries can be re-orientated (i.e they find new domestic customers) towards domestic production – just at a lower, less quality or feature rich, price point.
Of course they need to keep an eye on inflation but that may be less of a problem considering the deflationary pressures being exerted by their energetic credit growth in recent years. Experimenting with a modest and undeclared program of some mild variant of “QE for the People” seems somehow appropriate for the CCP.
The only real obstacle for China is overcoming the pressure to join the western orthodox economist club of magnificent theory that just doesn’t work in practice – or at least doesn’t work without massive unnecessary cost.