China at a Turning Point as New Leadership Takes Over

Americans have just voted on who will govern them for the next four years, now China is poised to usher in a new generation of leaders that will rule the world's second largest economy for the next 10 years.

China's Communist Party, which has ruled the world's most populous nation since 1949, starts its 18th National Congress on November 8 and is expected to unveil a new line-up of leaders when the gathering ends next week.

The once-in-a-decade political transition is arguably more significant than the , some observers say.

Here's why: China's emergence as an economic powerhouse means that what happens in its domestic politics has the potential to shape economic policy, which in turn has global implications.

And this transition is particularly important as it comes at a time of huge change – growing resentment at corruption and vested interests, highlighted by the , labor disputes that are on the rise and fears about where China is heading as the economy slows after three decades of rapid growth.

"The political transition is important not only because of China's growing presence in the world economy, but also because of the power the Chinese government has to shape its economy," said Justin Harper, Market Strategist at IG Markets in Singapore.