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China 2.0 - Economic transformation

China's growth following the failed policies of Chairman Mao Zedong has lifted hundreds of millions out of poverty. The next phase of development may be tougher.

A guard stands sentry overlooking Tiananmen Square in Beijing. Three decades after the failed policies of Mao Zedong's Cultural Revolution brought economic collapse, China has caught up with Japan to become the world's second-largest economy. But as it enters a new phase of growth, the Chinese government faces a new set of challenges. John Schoen / msnbc.com
The Great Wall, one of the greatest engineering projects ever built, stretches west. China has embarked on a massive new infrastructure program designed to spread the breakneck economic growth of its coastal cities to inland and western regions. John Schoen / msnbc.com
A growing panda consumes between 15 to 30 kilograms of bamboo every day in the Wolong National Nature Reserve in western Sichuan, a popular tourist attraction. The government is encouraging newly wealthy Chinese to travel more as part of a plan to boost domestic spending. John Schoen / msnbc.com
Shoppers search for low prices at a Wal-Mart store in the New World Shopping Center in Beijing. China's red-hot economy has raised the living standards of urban households. But hundreds of millions of rural workers earn roughly $2 a day. John Schoen / msnbc.com
A laborer in Chengdu works on a new sewer system, part of a multibillion-dollar investment in new roads, railways, power and water lines. China's rapid industrialization has created a long list of environmental hazards that will be costly to clean up. John Schoen / msnbc.com
A farmer in rural Sichuan province tends to the fall harvest. Rural households recently were granted long-term leases on their property. But land reform has been plagued by corruption. John Schoen / msnbc.com
Like many aspiring young Chinese, Gong Da Dian, 25, who goes by the English name "Dickens," moved to the city of Chengdu looking for a better life. But it hasn't been easy. He wants to go back to school and start a computer company "if I can get enough money.” John Schoen / msnbc.com
At Deyang Primary School No. 1, students assemble in light, airy rooms surrounding a quiet courtyard. Classes can include as many as 70 students. To create new technology and high-wage jobs, China is spending heavily on education. John Schoen / msnbc.com
A worker at an art company in western Sichuan province creates traditional Chinese paintings. The government is working to create jobs in rural areas, where employment opportunities are scarce. John Schoen / msnbc.com
Three years ago, He Yue moved to Chengdu in Sichuan province to find "a better opportunity." She now works as a travel agent and business is brisk. "Chinese people used to travel once a year," she said. "Now they travel two or three times a year." John Schoen / msnbc.com
A photo is left as a memorial to victims of the Sichaun earthquake of 2008, which killed nearly 70,000 people and left millions homeless. The government committed more than $400 million to the relief and rebuilding effort. John Schoen / msnbc.com
Though China's coastal cities are choked with traffic, some new highways like this one in Sichuan province are virtually empty. China's leaders are hoping an expanded network of roads, high-speed railways, airports and data links will spur growth in western and inland regions, where economic gains have lagged coastal cities. John Schoen / msnbc.com
You Zhoubao was at home when the Sichuan earthquake struck in 2008, collapsing his home and severing his left leg above the knee. Two years after the disaster, victims are still being treated at a local clinic sponsored by the Hong Kong Red Cross. John Schoen / msnbc.com
Stockbroker Zai Shasha helps her customers navigate the burgeoning Chinese stock market. Rapid urban development has helped boost investment returns for her customers. But growth also has created "some sorrows," she said. "The traffic is bad, and the air is terrible." John Schoen / msnbc.com
Visitors to Chengdu's riverwalk enjoy a little relief from a hot September day. People in this provincial capital proudly say they enjoy a "more relaxed" lifestyle than friends and family in China's bustling coastal cities. John Schoen / msnbc.com
Air pollution is a serious problem for Chinese cities, including western provincial capitals like Chengdu. Only 1 percent of the country’s 560 million urban resident breathe air considered safe by the European Union, according to the World Bank. John Schoen / msnbc.com
Shoppers flock to Hong Kong from mainland China to spend some of their new wealth. The city also draws investors hoping to profit from heavy investment in the next phase of China's economic development. John Schoen / msnbc.com