Tensions between US & China very real [William Engdahl © RT]

A major transfer of power has begun in China. The country's set to appoint its new top leaders next week as part of the Communist Party Congress which is now underway.

President Hu Jintao has called on the nation to fight corruption, improve its military and keep the economy growing.

And economic researcher William Engdahl, the author of "Myths, Lies and Oil wars", says the new Chinese leadership will have some serious challenges ahead.