Notes:

1. Based on the CPB data on world trade, we estimate that imports into the world excluding China fell 19.3 percent in the first 8 months of 2009, compared to 17 percent for total world imports.

2. The quarter-on-quarter growth numbers are our estimates. The National Bureau of Statistics does not publish such data.

3. Investment and GDP growth in the central and western region outpaced that in coastal areas.

4. "Per-capita wage income" in the household surveys includes the impact of both wages and employment.

5. The stimulus package may have postponed the incorporation of the new, more subdued environment in investment plans of the corporate sector. Thus, some of the impact may still come.

6. In line with this approach, the government in end-August announced reinforcement of existing administrative measures to curb overcapacity in the steel and cement sectors and "redundant projects" in sectors including wind power equipment. The measures include strict controls on market access, reinforced environmental supervision, tougher controls over land use, and ordering banks to conduct lending to these sectors in strict accordance with present industrial policies. The government also wants to provide better information to market participants about capacity, demand, and government policies.

7. In general, any change in the taxation system can best be motivated in line with the goals of that system rather than as a measure to address a short-term phenomenon such as a stock market surge.

8. Local governments have had difficulties funding their share of stimulus projects. This pressure apparently increased demand for loans by local governments related entities, according to the People's Daily (October 9, 2009). The MOF recently also allowed them to fund their share with proceeds of land transactions.

9. The Research Institute of Fiscal Science under the Ministry of Finance recently estimated these to exceed 4 trillion yuan (21st Century Business Herald, March 14, 2009).

10. http://www-wds.worldbank.org, report nr. 46355

11. Initially a temporary measure, companies with an annual taxable income up to 30,000 yuan can enjoy a temporary 50 percent reduction on their taxable income. As such firms typically do not have good records, it may in practice be difficult to make this measure effective.

12. Shanghai, Zhengzhou, and Nanjing raised residential water prices by 25, 25, and 12 percent in recent months. The first two cities said they plan more rises in the future, but Nanjing also introduced subsidies to reduce the impact on low-income households.

13. Under a new mechanism introduced in January, the NDRC will consider changing benchmark oil product prices when the 22 working days moving average of the international crude price rises or falls by 4 percent.