China’s reform will undergo profound and complex changes in the next few years within the context created by both the internal and external environment. irstly, reform will be conducted in parallel with economic and social transformation and transformation of government functions. Whether the latter could be successful depends upon the former. Secondly, greater conflicts will emerge in the tribution of benefits and the efforts to solve this problem are crucial to ensuring overall national stability. Thirdly, given the risks that will inevitably exist during the reform, it is vital to work out the reform plan, road map and timetable as soon as possible in order to obtain substantial breakthroughs.