The war on graft has not only uncovered "major problems" within the system, it has also put a strain on the supply of top talent in China.
"Going after the bad guys, he created some unintended factors," says Wall Street Journal correspondent Wei Gu. "People working for the government are so nervous about their jobs... so the best talent is not going to continue to work for the government."
"If you want a strong government and a strong regulator to play by the rules and come up with smart policies, these people are not there anymore," Gu says.
To address the nation's economic woes, China's paramount leader has called for "supply-side reforms." Yes, you heard right, the economic rallying cry of U.S. President Ronald Reagan back in the 1980s.
And though it's still unclear whether Xi's vision of supply-side economics has much to do with Reagan's, economic observers are already mapping out the potential consequences.
"Supply-side strategy ... means laying off people, shutting down mines and all that," Gu says. "That's a good thing. It's also a difficult thing to do structurally."Painful reforms could raise the prospect of discontent among workers, a longstanding fear for Chinese leaders.
"You're losing jobs from supply-side reform, and on the other hand new graduates are coming in," Gu says. "Every year, the new graduate number will hit a new record. Ten million young people need to find jobs, so that's a big issue."
Wei Gu is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers´request form.
Are you looking for more political experts at the China Speakers Bureau? Do check out this list.