. labor cost has remained and will remain comparatively low before the process is completed. during this process, the choice of staying on farms or going to cities depends mainly on the comparative advantages and benefits of farming and working in cities. other policy related factors, however, are relatively insignificant. due to the equity ownership structure, employees only receive a small proportion of corporate profits, which have maintained at high levels. to solve this problem, the 17th party congress stated in its report that conditions would be created to enable more people to receive incomes from properties and investments. for the same reason, part of the stateowned common equity is transferred to the national social security fund when a company goes public. greater efforts are needed to enable the public to share the corporate profits. in china ’ s structural adjustments, the optimal choice is to expand household consumption, which will directly enhance the domestic demand and lower the savings rate. this is, however, easier said than done. while the current income distribution structure cannot be dramatically changed in the short term, the second - best choice is to maintain and expand investments, and channel investments to sectors and areas to achieve efficient but not wasteful allocations. this way, the residual savings, namely, total savings net of total investments ( savings surplus ), will not be so large, and will not have a major impact internationally. apparently, over - investment in industries leads to overcapacity. however, with urbanization still a long way to go, there is enormous investment potentials in the process. urbanization will prepare china for its demographic migration, consumption expansion and the development of the service sectors. after all, china ’ s urbanization will go on for many years to come. 4. analysis of several scenarios of rebalancing the global economy there can be a number of scenarios for rebalancing the global economy through adjustments, and the analyses and policy implications for different scenarios are different. a lot of discussions focus on the first and also the most desirable scenario. both the household savings rate and overall savings rate in the u. s. keeps going up, and chinese household consumption keeps rising, leading to a correction of the global imbalances. indeed, this is the most ideal scenario, but not easily realizable, because structural adjustments involve quite a lot difficult issues. furthermore, we cannot, based on the latest short - term data, jump to the conclusion that this problem can be easily solved. in the second scenario, u. s. household

zhou xiaochuan : anti - money laundering in china - the status quo and prospects speech by mr zhou xiaochuan, governor of the people ’ s bank of china, at the first meeting of the ministerial joint conference on aml, beijing, 27 august 2004. * * * approved by the state council, the people ’ s bank of china ( pbc ), as the leading ministry in the ministerial joint conference on anti - money laundering ( aml ), invites today the member ministries to review the current aml situation, to draw up the plan for the aml work in the next stage, to determine the working procedure for the ministerial joint conference on anti - money laundering ( aml ) and the responsibilities of the relevant ministries. i. the significance of aml money laundering is the practice of legitimizing the illegally obtained gains and proceeds through a series of transactions, transfers or conversions in order to evade legal punishments. money laundering helps criminals to evade legal punishments as well as puts a premium to the spawning of new crimes, distorts normal economic and financial orders, damages credibility of financial institutions and corrupts public morality. with the deepening integration of china ’ s economy into the world economy and new changes in social conflicts, strengthening aml is of great significance. first, sound aml work is an objective necessity for safeguarding china ’ s national interests and the fundamental interests of the masses. aml involves efforts in the diplomatic, economic, judiciary and security fields etc. the performance of aml is closely related to the public image of china ’ s government both at home and abroad, to the economic stability and to the social justice. a sound practice in aml also constitutes the concrete measure for safeguarding the order of china ’ s socialist market economy and the fundamental interests of the masses and for practicing the important thoughts of “ three represents ”. the work stands for an important move for honoring the commitments of the chinese government to the outside world and for creating the image of a responsible big country with respect to aml. it is also a necessary step for speeding up the opening of the financial industry and promoting the internationalization of the chinese banks. therefore, we shall, from the vantage point of “ stressing political awareness ” and based on the significance of safeguarding china ’ s economic and financial security, sharpen the awareness of the importance and urgency of aml, establish effective aml system, and bring aml onto the track of standardization and institutional arrangement. second