ABSTRACT
We have provided an interpretation of China’s economic growth and volatility over the past three decades since the reform and opening up. From this chapter onwards, we will try to envisage the Chinese economy in the future. Our primary task is to explore the possibility of and conditions necessary for China to sustain its current high growth. To do this, we will first examine the quality issue involving economic growth in China over the past three decades. We then will discuss the challenges that China will have to face in the future, and present an extremely important theme: that China will enter, and has perhaps already entered, its second stage of economic development. This theme will run through the rest of the book.
