1 The environment is of course not the only serious obstacle to continued high growth in China. Two other serious obstacles that have a high probability of appearing are its outmoded governance structure, which exacerbates social tensions, and its trade friction with the United States and the European Union, which threaten a breakdown of the post-World War II multilateral free-trade system. See Woo (2007) for a discussion of these two challenges to China's growth.

2 Some 350,000 to 400,000 people died prematurely from air pollution in Chinese cities—300,000 from poor air quality indoors and 60,000 (mostly in the countryside) from poor-quality water.

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