1. China’s Economy in the Year 2007 I Institute of Quantitative & Technical Economics, Cass

2. page 2 I. Current Situation of China’s Economy Economic Growth

3. page 3 Annual GDP from 2000 to 2006

4. page 4 Quarterly GDP from Q1/2003 to Q3/2006

5. page 5 Annual GDP (2000-2006)( Growth Rates of the Three Industries) ( 国家统计局）

6. page 6 Quarterly GDP (Q12003-Q32006)

7. page 7 Total Value of Fixed-Asset Investment and Its Growth Rate(2000-2006)

8. page 8 Quarterly FAI and Its Growth Rate(2005/Q1-2006/Q4) (State-owned and Others)

9. page 9 The Growth Rate of Total Volume of Retail Sales of Consumer Goods (2000-2006)

10. page 10 Amounts of Imports, Exports and Their Increase Rate(2000- 2006)

11. page 11 Monthly Imports, Exports and Their Growth Rate (2005-2006)

12. page 12 Annual Disposable Income of Urban Residents, & Its Growth Rate(2000-2006), (per capita)

13. page 13 Annual Net Income of Rural Residents (2000-2006) (per capita)

14. page 14 Fiscal Revenues （ 2000-2005 ）

15. page 15 Enterprise Profits (State-owned Enterprises and Non- state Owned Enterprises Above Designated Size)2000-2006

16. page 16 I Current Situation of China’s Economy Prices

17. page 17 Consumer Price Index （ CPI ）

18. page 18 Producer Price Index (PPI) and Raw Material Price Index

19. page 19 Enterprises Price Index of Industrial Products 企业商品 价格指数 (by Central bank) （ 2005-2006.11 月度）

20. page 20 I Current Situation of China’s Economy Employment

21. page 21 Registered Unemployment Rate in Urban Area( 2000-2006)

22. page 22 Newly Employed Labor Force (2000-2006)

23. page 23 I Current Situation of China’s Economy Balance of International Payments

24. page 24 Balance of Imports and Exports(1978-2005)

25. page 25 Foreign Exchange Reserves(2000-2006)

26. page 26 Foreign Exchange Reserve (The Years of Above 5 、 10 、 50 、 1000 、 500 、 1000 (100 Million USD))

27. page 27 II Current Major Problems of China’s Economy Too Rapid Investment Growth

28. page 28 Growth Rate of GDP, Investment and Consumption （ 2000-2006 ）

29. page 29 Growth Rate of GDP, Investment and Consumption （ 1985-2006 ）

30. page 30 The Ratio of FAI in GDP(1953-2005 ）

31. page 31 Investment Increase Rate

32. page 32 Over-investment Is the Major Cause of Inflation

33. page 33 -20 -10 0 10 20 30 40 50 60 70 8182838485868788899091929394959697989900010203 GDP Growth Rate Inflation FAI Growth Rate Over-investment Is the Major Cause of Inflation

34. page 34 The Contributions of Investment to GDP

35. page 35 II Problems of Current Economic Situation Too Rapid Increase of Money Supply

36. page 36 Over-supply of Money

37. page 37 M2/GDP

38. page 38 II Problems of Current Economic Situation Foreign Trade Surplus

39. page 39 Balance of Foreign Trade(2000-2006)

40. page 40 Trade Surplus (USD 100 million) (monthly, 2005-2006)

41. page 41 II Problems of Current Economic Situation Excessive Increase of Real Estate Price

42. page 42 Price Index of Housing Sales

43. page 43 Price Index of Real Estate of 36 Large and Medium Size Cities (Second Quarter of 2006) CitiesPrice Index of Housing Sales Cities Price Index of Housing Sales Beijing108.7Xiamen107.0 Tianjing106.7Qingdao107.0 Dalian111.9Wuhan103.2 Shanghai97.2Guangzhou107.1 Najing104.1Shenzhen114.4 Hangzhou102.8Chongqing102.7 Average Index 105.7

44. page 44 Investment Induced Unhealthy Circle Over Investment Exports Increase Over- production capacities Investment Increase More Trade Surplus Increase Supply of Basic Money Increase Liquidity More Investment

45. page 45 III Some Long-term Problems of China’s Economy Some Long-Term Problems of China’s Economy

46. page 46 III Some Long-term Problems of China’s Economy Residents Income Disparity

47. page 47 Income Growth Rates of Urban and Rural Residents(2000- 2006)

48. page 48 Income Gap Between Urban and Rural Residents (2000-2006)

49. page 49 Gini Coefficients 基尼系数 《中国经济周刊 》 《人民网 》

50. page 50 III Some Long-term Problems of China’s Economy Structure of Investment and Consumption

51. page 51 Structure of Investment and Consumption (2000-2006)

52. page 52 III Some Long-term Problems of China’s Economy Structure of Three Industries

53. page 53 Growth Rates of the Secondary and the Tertiary Industries

54. page 54 The Percentage of the Three Different Industries The Primary The Secondary The Tertiary

55. page 55 III Some Long-term Problems of China’s Economy Resources, Energy Consumption and Pollution

56. page 56 Total Volume of Energy Consumption(2000-2005)

57. page 57 Total Consumption of Raw Coal(2000-2005)

58. page 58 Total Consumption of Crude Oil(2000-2005)

59. page 59 天然气消费总量 (2000-2005)

60. page 60 Total Consumption of Water and Electricity(2000- 2005)

61. page 61 Industrial Exhaust Gas Emissions(2000-2005)

62. page 62 Industrial Sulfur Dioxide (tons)(2000-2005)

63. page 63 Industrial Fume Dust (ton)(2000-2005)

64. page 64 Industrial Dust (ton)(2000-2005)

65. page 65 Energy consumption for unit GDP rose by 0.8 % in the first half of 2006 IndustriesConsumption Change Unit Coal mining +5.5% Per value added Oil and Petrochemicals +8.7% Per value added Non-ferrous metals +0.4% Per unit of GDP Electricity +0.8% Per unit of GDP Chemical -5% Per unit of GDP Textile -5.5% Per unit of GDP Construction -1.2% Per unit of GDP Steel -4.5% Per unit of GDP

66. page 66 Thanks!