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Having made advances in achieving economic growth and poverty reduction over the last quarter century, China now faces internal challenges in its future development as it moves from an agricultural to an industrial and service economy and from a command to a socialist market economy. This book outlines these challenges, provides policy recommendations for China and makes suggestions for implementing the proposed strategy. The chapters are: Catching up with the advanced countries; Ensuring China's development; Positioning China in the global knowledge revolution; Updating economic incentives and institutions; Investing in China's human capital; Building the information infrastructure; Diffusing technology throughout the economy; Improving the research and development system; Exploiting global knowledge; Moving to action. Includes references.