POSITIVE DATA: China's auto sales, consumer spending and factory output improved in October in a new sign of economic recovery. Inflation also eased, and investment growth strengthened.

NEW LEADERS: The improvements come as the Communist Party meets in Beijing for a once-a-decade handover of power to younger leaders. Coming off the past year's steady declines in economic activity, a rebound might allow the new leaders to benefit from improving public sentiment.

TOUGH CHOICES: The new leadership faces challenges that analysts say will require a drastic change in the country's economic strategy. They say Beijing must reduce the dominance of state companies and nurture free-market competition to keep incomes rising.