Intellectual Youth to

College Professor

Fast but Imbalanced Growth

Take Your Land…

Give You a Job

…Turned Costly

Costless Environment…

Made in China

and Copied in China

5

10

15

20

25

Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11

USD bn

6.0

6.5

7.0

7.5

8.0

8.5

RMB to USD

China's trade surplus with U.S. (left) RMB to USD (right)

You Know Why We are so Competitive

Too Much Capacity

Too Little Demand

It’s Sustainability, Stupid!

The Way Out?

From Made-in-China to Created-in-China

Deng vs. Keynes

Reform, Not Reflate

Establish Factor Markets…

To Correct Distortions

You Want to Reform Me?

Growth Trajectory without Reforms

• Thank You！• Happy Chinese New Year！

Thank You！

Happy Chinese New Year！