Challenges ahead in shift to a powerful industrial country

China will face some major challenges when shifting from a large industrial country to a powerful one, as the world's second-largest economy has entered the later phase of industrialization, experts said on Friday.

"Shortage of resources and growing environmental pressure will increase the cost of China's economic growth in the next decade," said Chen Jiagui, director of the economic department at the Chinese Academy of Social Sciences.

"The rising cost of industrial activities will severely challenge the country's transformation to a powerful industrial country, along with a growing income gap and weakening driving force from the reform and opening-up," Chen said.