The rapid development of emerging markets is changing the landscape of the world economy and may have profound implications for international relations. China has often been regarded as the most influential emerging market economy. Projections indicate that the absolute size of the Chinese economy may be larger than that of the United States within two to three decades. While China's growth performance since reform has been hailed as an economic miracle (Lin et al., 1996), concerns over the sustainability of its growth pattern have emerged in recent years when measured total factor productivity (TFP) growth has slowed.