To win a competitive edge in international circulation, China has in effect sacrificed domestic circulation, and in particular the spending power of its households. The real question is whether this China model actually serves China's interests.

For China's reform and for Chinese history, Baumol was a precise physician who prescribed exactly the right remedy, even though he never made China his main subject of study.

Today's weak confidence is the concentrated eruption of old problems in the domestic market at a moment when the external environment has closed up. Ownership discrimination and the blurred boundary between government and private business have run through the whole history of the private sector.

Respect for entrepreneurship is one of the most important legacies of China's reform era, and only in comparison does its full weight become apparent.

The Chinese entrepreneurial community hopes for continued reforms to continuously unleash entrepreneurial talent. They also hope for continued opening up, embracing the wisdom of broad inclusivity.

The ideas of free markets, clearly defined property rights, and limited government set off a wave of marketization across the world, China included, and lifted hundreds of millions of people out of poverty.