The most significant political event in China this year was the leadership change. Xi Jinping succeeded Hu Jintao as head of the Communist Party of China in November. He's promised to continue the country's transformation into a global giant, and bring more benefits to a fifth of the world's population.

A transition in China's leadership, a milestone for the country's politics -- Xi became the top leader of the ruling Communist Party. He's well-aware of the tough tasks ahead.

"The Party faces many severe challenges, there are many pressing problems within the Party that needs to be resolved -- particularly corruption, being out of touch from the people, and bureaucratism," Xi said.

Xi named fighting corruption as the top challenge. Better party discipline is also needed. The new leadership issued eight streamlining measures. For example, when officials go travelling, there will be "no welcome banner, no red carpet, no floral arrangement and no grand receptions."

Dai Yanjun, deputy head of party building, Central Party School, said, "The eight points are designed to instruct officials from the Politburo. It asks them to set examples from the top. These measures are all related to the public interest, and represent more than just a form."

Xi has also made maintaining healthy economic development his top priority. Hu Jintao, the outgoing Party Secretary, has set the goal of doubling 2010 GDP and per capita income for both urban and rural residents in the next 10 years.

The new leadership has to turn the blueprint into reality. They know a new model for economic growth is needed. Development must be made more balanced and sustainable.

Kenneth Kim, Renmin University School of Business, said, "They need to invest in domestic growth, they need to ensure future consumption that goes back to trying to reduce income disparity, and urbanization is part of that. I think this is where people can get excited about the future of China."

Showing his determination to deepen reforms, Xi made his first tour after being elected to the southern coastal city of Shenzhen. It was where the open-door policy was first initiated by the late leader Deng Xiaoping some three decades ago.

"We'll continue to walk along the right road to rejuvenate the country and make people better off. We will deepen our reforms to a wider scope and a higher level," Xi said.

China has seen a decade of rapid growth, but this fast development has been uneven, leading to a widening wealth gap, environmental damage, and various social problems.

Another rising challenge is regional tensions over territorial rows in the East and South China Seas. Xi said the army should speed its modernization.

Six weeks after taking office, Xi has already begun work on major projects, from internal reforms to direct appeals to the people. His approachable personality has proved popular with the public. Despite all the challenges, the smooth transition and his confidence in politics could mean that a better tomorrow is attainable for China and its people.