Although China's growth had been rapid over the past two decades, she faces daunting challenges in improving the quality of growth. This book discusses a mix of policies which would assist China in achieving three key medium and long term objectives. Increasing market efficiency and improving the technological capability of Chinese firms is the first. The second objective is to move towards a more equitable society through a reform of intergovernmental fiscal relations and improved public services delivery. Lastly, enforcement of environmental regulation needs to be strengthened and distortions in markets for resources needs to be eliminated to stimulate innovation in this area and improving