Addr.: School of Public Policy and Management, Tsinghua University Beijing, P.R.China, 100084 Tel: (86-10)62772497 Fax: (86-10)62772497 E-mail: [email protected] http://cideg.cemf.net.cn 2015 CIDEG ANNUAL REPORT

About CIDEG

Officially found on September 27th, 2005, the Center for Industrial Development and Environmental Governance (CIDEG) of Tsinghua University serves as a center of excellence for policy research, academic exchange, graduate education, and on-the-job training on industrial development, environmental governance, and institutional transition. The long-term goals of the Center are to promote education and research on public policy and management in China and to enhance the communication, understanding, and cooperation among the academic, business, non-profit, and public sectors. The Center for Industrial Development and Environmental Governance (CIDEG) is very grateful for the unconditional sponsorship provided by the Toyota Motor Corporation.

Since its establishment, CIDEG dedicated to organize various research projects and academic activities, with the involvement of numerous famous scholars, to construct its own research team and academic network, and to publish various research findings, which have made great achievements and significant influence. All these efforts prepared CIDEG for one of the world-class think tanks.

CIDEG 10th Anniversary Ceremony on October 25th, 2015

CIDEG1 Board of Directors ■ Chairman of the Board

CHEN Qingtai Former Deputy Director, Development Research Center of the State Council Founding Dean, School of Public Policy and Management, Tsinghua University

■ Board Members (in alphabetical order)

AOKI Masahiko (1938.4—2015.7) DONG Changzheng Emeritus Professor, Stanford University Former President, the International Executive Vice President, Economic Association Toyota Motor (China) Investment CO.LTD.

Nobuyori Kodaira Shigeru Hayakawa Executive Vice President, Senior Managing Officer, Member of the Board of Directors, Toyota Motor Corporation Toyota Motor Corporation

Lawrence J. Lau LU Mai Ralph and Claire Landau Professor of Economics, Secretary General, The Chinese University of Hong Kong China Development Research Foundation

Tetsuo Ogawa Hiroji Onishi Managing Officer, Senior Managing Officer Toyota Motor Corporation Toyota Motor Corporation

QIAN Yingyi QIN Xiao Dean, Professor, School of Economics and Management, Chairman of the Board, Tsinghua University Boyuan Foundation

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QU Geping QIU Baoxing Chairman, China Environmental Protection Counselor of the Council, China Foundation President, Chinese Society for Urban Studies Chairman, Oriental Environmental Institute

Tatsuhito Tokuchi Former Managing Director, CITIC Securities Corporation WU Jinglian Former President, Investment Bank Committee Senior Researcher, Counselor, State Administration of Foreign Development Research Center of the State Experts Affairs, P.R.China Council

XIAO Meng XIE Weihe Senior Editor, Journal of Comparative Vice Chairperson of Tsinghua Studies, CITIC Publishing House University Council

XUE Lan Dean, Professor, School of Public Policy and Management, Tsinghua University

Academic Committee ■ Joint Chairpersons

AOKI Masahiko (1938.4—2015.7) WU Jinglian Emeritus Professor, Stanford University Senior Researcher, Former President, the International Development Research Center of the State Economic Association Council

■ Members of the Academic Committee (in alphabetical order)

Takahiro Fujimoto BAI Chong-En Professor, Graduate School of Economics, Associate Dean, School of Economics and University of Tokyo Management, Tsinghua University Executive Director, Manufacturing Mansfield Freeman Chair Professor, Chair, Management Research Center, University of Department of Economics Tokyo

3 ■ Members of the Academic Committee (in alphabetical order)

GAO Shiji HU An-Gang Senior Research Fellow, Institute of Professor, School of Public Policy and Resources Management, Tsinghua University and Environmental Policy, Development Director, Center for China Studies, Research Center of the State Council Tsinghua University

JIANG Xiaojuan JI Weidong Deputy Secretary-General, the State Council Dean, Professor, School of Law, Professor of Graduate School, Chinese Shanghai Jiao Tong University Academy of Social Sciences

Yoshitsugu Kanemoto Professor and Executive Advisor to the President National Graduate Institute for Policy Studies LI Qiang Visiting Professor, Graduate School of Public Dean, Professor, School of Social Sciences Policy, University of Tokyo Tsinghua University

QIAN Yi Professor, Department of Environmental Barry J. Naughton Science and Engineering, Tsinghua University Professor, School of Global Policy and Strategy Member of the Chinese Academy of University of California, San Diego Engineering

Edward S. Steinfeld Dean's Professor of China Studies, Department of Political Science, Brown QIAN Yingyi University Dean, Professor, School of Economics and Director, the Watson Institute for Management, Tsinghua University International and Public Affairs

WANG Ming Professor, School of Public Policy and Management, Tsinghua University Director, NGO Center of Tsinghua WANG Chenguang University Professor, School of Law, Tsinghua Director, Institute of Philanthropy of University Tsinghua University

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Christine P. Wong Professor, Chinese Studies Director, the Centre for Contemporary XUE Lan Chinese Studies, Dean, Professor, School of Public Policy University of Melbourne and Management, Tsinghua University

ZHA Daojiong Senior Researcher, the Energy Research ZHOU Dadi Institute of the National Development and Professor, School of International Reform Commission Studies, Peking University

Research Team

■ Research Fellows (in alphabetical order)

CAO Jing CHEN Ling Ph.D., Harvard University Ph.D., Tsinghua University Associate Professor, Department of Economics, Associate Professor, School of Public Policy School of Economics and Management, and Management, Tsinghua University Tsinghua University Major research areas: Science & technology Major research areas: Environmental economics, policy, industrial development and environmental public economics, energy economics governance, policy-making

FENG Kaidong CUI Zhiyuan Ph.D., Sussex University Associate Professor, School of Government, Ph.D., University of Chicago Peking University Professor, School of Public Policy and Major research areas: Technological learning Management, Tsinghua University and catching-up under developing circumstances, Major research areas: Politics and economics, evolution of innovation systems, innovation state-owned enterprise reform and privatization, strategy and industrial analysis, business history of macroeconomic policies contemporary China

GE Dongsheng Ph.D., Tokyo University Lecturer, Beijing Center for Japanese Studies, Akira Koshizawa Beijing Foreign Studies University Ph.D., the University of Tokyo Major research areas: Product development management, supplier system management, Professor,Hokkaido University Toyota production system Major research areas: Urbanization policy

5 ■ Research Fellows (in alphabetical order) LI Wanxin Ph.D., Virginia Polytechnic Institute and State University MENG Bo Associate Professor, Tsinghua Graduate School at Shenzhen Ph.D., Tohoku University Associate Professor, Department of Public & Social Senior Researcher, Development Studies Center, Administration, City University of Hong Kong Institute of Developing Economies, Japan External Major research areas: Public policy making, Trade Organization implementation and evaluation, regulatory governance, Major research areas: Global Value Chain, Low-carbon sustainable development economics, Spatial CGE model, Input-Output model

QI Ye Ph.D., State University of New York MENG Jianjun Professor, School of Public Policy and Ph.D., TOKYO Institute of Technology Management, Tsinghua University Major research areas: Development economics, Major research areas: Resource and economic studies on east asia and China, industrial environmental policy and management, sustainable development and labor economics development theories, methods and policies

RONG Fang Ph.D., University of Maryland WU Yongping Post-Doc, School of International Relations Ph.D., Leiden University and Pacific Studies, University of California Associate Dean, Professor, School of Public Policy at San Diego and Management, Tsinghua University Major research areas: Energy economics and Major research areas: Government and market, policy, climate change policy, urban planning and industrial policy, the industrial policy of local energy demand governments and regional development, Taiwan issues

YU Qiao ZHENG Siqi Ph.D., Michigan State University Ph.D., Tsinghua University Professor, School of Public Policy and Professor, Institute of Real Estate Studies Management, Tsinghua University Deputy Head, Department of Construction Major research areas: Government and market, Management, Tsinghua University industrial policy, the industrial policy of local Major research areas: Urban economics, real government and regional development estate economics and housing

ZHENG Yuhui Ph.D., Pardee RAND Graduate School Post-doc, RAND Center for Health Economics Post-doc, The National Bureau of Economic Research Major research areas: Health economics, environment and health, medical system and health service

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■ Postdoctoral Research Fellow

ZHANG Yongwei ZHAO Jing Ph.D., Renmin University of China Ph.D., School of Public Policy and Researcher, Development Research Center Management,Tsinghua University of the State Council Major research areas: Energy policy, industrial Major research areas: Industrial policy, policy, policy-making process regional development and governance

CHI Shufang Ph.D., Stanford University Major research areas: Infrastructure project governance, institutional effects on public projects, environmental governance and performance for public projects

Research Team

■ Visiting Scholars (In Visiting Time Order)

WANG Haochen (2015.09-2015.12) HUANG Junlin (2015.06-2015.08) Ph.D., Institute of Population Research, Peking Post-doc of the Belfer Center for Science and University International Affairs at Harvard University Major research areas: Environment and Population Major research areas: renewable energy, energy Health, Population Analysis Technology technology innovation policy

Kitty Poon (2014.04-2014.08) Former Under-Secretary for the Yew Wei Lit (2015.05-2015.06) Environment of Government of Hong Kong Ph.D. candidate of the Department of Asian Special Administrative Region; former part- and International Studies, City University of time member of the Central Policy Unit, a Hong Kong think-tank of Hong Kong Government Major research areas: Public Participation in Major research areas: Public policy and environmental protection, political sociology, social administration, Hong Kong Politics, environmental movement policymaking

Yohei Matsuda (2013.10-2014.07) (2013.09-2013.11) Deputy Director, Information Economy Division, Barry Naughton Commerce and Information Policy Bureau Professor of School of Global Policy and Major research areas: Smart-city development in Strategy University of California, San Diego China and Japan, transition of innovation system Major research areas: China’s economy and politics

7 ■ Visiting Scholars (In Visiting Time Order)

(2012-2013) Shi Weiyi (2012-2013) Lu Xiaoli Assistant Professor, School of Public Policy Assistant Professor and Management, Tsinghua University University of California, San Diego (UCSD) Major research ares: Managing Uncertainty Major research ares: international relations and in Crisis Decision Making, Crisis Management; comparative politics Internet Users’ Behavior in Crises

Masami Miyashita (2012-2013) ( Government Official, Ministry of Economy, Xu Chenni 2011.09-2012.08) Trade and Industry of Japan Major research ares: International relations, Major research areas: New emerging industrial gender and development, international political ecosystem of Japan, China, and Silicon Valley economy

Lee Kwang Jae (2011.09-2012.08) Daisuke Asano (2011.08-2012.01) Visiting Professor, Institute of East and West Government Official, Ministry of Economy Studies, Yonsei University and Industry, Japan Major research ares: Comparative studies on Major research ares: Energy and natural eastern and western culture resources, research on integration of economies

Kyoung Marvin Shin (2010-2011) Elizabeth Wilson (2009-2010) Ph.D. Candidate, Industrial performance Associate Professor, Humphrey School of Center, Massachusetts Institute of Public Affairs, Technology University of Minnesota, USA Major research ares: China energy innovation, Major research ares: Energy policy and law, low- political economy of low-carbon city carbon energy management system

Jean-Marc Coicaud (2009) Matthew Kahn (2009-2010) Director, the United Nations University, Professor, University of California Los United Nations Headquarters, New York Angeles Major research areas: Comparative politics, Major research ares: Environmental, urban, real political and legal theory, international relations, and estate and energy economics international law

Keith Florig (2008) Carine Milcent (2007-2008) Professor, University of Florida Business School Researcher, French National Centre of Major research areas: Assessment and Scientific Research (CNRS) management of health, safety, environment, and Major research areas: Hospital productivity, security risks. Environment, energy, and risk health and geographic disparities, Insurance issues involving China system and healthcare expenditure

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Karen Eggleston (2007) Researcher, Asia-Pacific Research Center, (2007) Stanford University Lawrence H. Goulder Major research areas: Health reform in Professor, Stanford University. China, comparative healthcare systems in Asia, Major research areas: Environmental and government and market roles in the health sector, Economic Impacts of U.S. and International payment incentives, healthcare productivity, and Environmental Policies economic implications of demographic change

Dan Guttman (2006-2007) Researcher, Government of the United States Research Center, Johns Hopkins University Major research areas: Public management, anti- corruption, civil rights, antimonopoly, energy, environment, safety and health law

Management Team

Center Director Vice Director XUE Lan CHEN Ling Dean, Professor, School of Public Policy and Associate Professor, School of Public Policy Management, Tsinghua University and Management, Tsinghua University

Center Manager Program & Media Coordinator Ms. YANG Nan Ms. PAN Shali

Administrative Assistant Ms. LI Fangfang

9 Research Projects ■ Major Projects ■

Legality and Accountability Project Chair: JI Weidong KoGuan Law School of Shanghai Jiao Tong University The project focuses on the accountability mechanism implementing the rule of law within the framework of decisions of the third, fourth plenary sessions of the 18th Central Committee of the party, putting emphasis on the following two aspects: (1) penalty against government official malfeasance and economic crimes and structural corruption prevention, (2) accountability for and redress against unconstitutional acts. By manipulating different systems, environment and other variables, he observes corruptions and controlled conditions, the relationship between motives and corruption practices and various factors such as transparency of information, legal penalty and forms, duties, civil servants’ salaries, law enforcer selection and industrial features, the impact of economic development level on corruption practices and demographic and cultural factors like gender, cultural background and religion.

Sports Industry Development: Analysis of International Experience and Chinese Problems Project chair: JIANG Xiaojuan Institute of Finance and Trade Economics of Chinese Academy of Social Sciences The research is done on the whole sports industry with emphasis on the professional sports, hoping the conclusion can be derived from the research that the sports industry develops in accordance with the general laws of industrial development, and concepts and analytical framework in economics are powerful enough to explain the issues of sports development and predict its developing prospects. The research includes current situation and problems of the sports industry, study on professional sports, smart internet and professional sports business model innovation: new opportunities, and government actions in the development of the professional sports.

Comparative Study on Environmental Governance and Governance Capacity in China and the United States Project chairs: YANG Dali, Institute of Politics, The University of Chicago; XUE Lan, School of Public Policy and Management, Tsinghua University Through the systematic comparison of environmental governance in terms of functions, means, institutional structure, resources allocation in China and the United States, it provides a comprehensive analysis of experiences and lessons learned by the United States and the reasons behind them in environmental governance, and a depth understanding of environmental governance issues and their causes in China and in different fields of environmental governance, thereby proposing reform ideas and policy suggestions to improve China’s environmental governance and governance capacity.

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■ Applied Policy Researches ■

The Impact of Urbanization on Chinese Rural Communities and Farmers’ Livelihoods Project chairs: LIN Wanlong School of Economics and Management, China Agricultural University; HUANG Peihua Center for Contemporary Chinese Studies, The University of Melbourne The research evaluates the impacts of implementation of urbanization policies on Chinese rural communities, farmers’ employment and livelihoods. Impacts on land utilization model, investment trends and local government liabilities are also considered and studied connecting with our main topic – impacts on rural areas and farmers.

Round Table Dialogue on Community Environment: Theory and Practice Project chair: WANG Hua The Policy Research Center for Environment and Economy, Ministry of Environmental Protection The research focuses on the governance model in relation to community environment stakeholder round table dialogue, through research methods like case study and text analysis, sums up the related theories and application models, including general summaries concerning the overall design, topic setting, organization and participants, procedures, implementing regulations and rationale. It is supposed to illustrate the organizational structure, institutional building, dialogue mechanism and model, implementing effects and problems by analyzing typical cases of community environment round table dialogue.

Research on Theories and Policies for Professional Sports Project chair: JIANG Xiaojuan Institute of Finance and Trade Economics of Chinese Academy of Social Sciences It researches into the major issues in reform and development of professional sports industry in China from economic perspective, mainly including economic nature of sports activities, professional sports development trends, generality and specialty of Chinese professional sports, new development model and features of professional sports in network era and new advantages and opportunities for professional sports industry in China.

1 1 List of Previous Projects

Research Field Project Name Project Chairs

Tracing China’s CO2 Emissions in Global Supply MENG Bo / XUE Jinjun Chains (2013) WANG Zhi / GAO Yuning

Experience and Lessons of Governing the WANG Ming /XIAO Meng Community Environment (2011)

A Comparative Study of Policy Formulation in China MENG Jianjun and Japan (2010) China’s CO2 Emission Reduction Targets and Action HU An-Gang Plan (2009) China’s Environmental Governance and Its QI Ye Effectiveness (2006) Research on the Governing System of China’s CHEN Jianpeng Environment and Modern State Construction (2014)

Environmental Research on Government Environmental Policy- XU Jianhua Governance making Process and Behavior in China (2014) IResearch on Lessons learned from the Minamata WANG Ming Incident (2013) A Series of Studies on Chinese Strategies and RONG Fang Countermeasures against Climate Change (2009) China’s Environmental Governance and Its QI Ye Effectiveness (2008) How Does China Respond to the Challenges of HU An-Gang Global Climate Change (2008) The Impact of Chinese Urban Expansion on ZHENG Siqi /CAO Jing Environment (2008) Evaluation of Social Factors in China’s LI Qiang Environmental Impact Assessment (2007) The Impact of Environmental Factors on Chinese ZHENG Jinghai Provincial Productivity (2007) Global Governance: Research on the Property Institutions for Human Genetic Resources in Gene XUE Lan Industrial Industry Development (2014) Development Enterprise Development Environment: Investigation, ZHANG Yongwei Evaluation and Optimization (2013)

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Research Field Project Name Project Chairs Research on China’s Solar PV Industrial Policy ZHANG Wei / WHITE (2013) Steven China’s Automobile Energy Strategy (2011) FENG Fei Leadership in Cutting-edge Innovation and GAO Shiji / Research-based National Technology Industrial ZHANG Yongwei Strategy (2011) Translations of Classics of Service Economics JIANG Xiaojuan (2009) China’s Global Service Outsourcing: Extension of the Global Chain in the Division of Labor and the JIANG Xiaojuan Development of China’s Service Industry (2007) The Impact of Changing Energy Prices on Industrial LI Shantong Restructuring, Income Distribution and CPI (2006) Research on Industrial Policy Transformation in LIU Taoxiong China (2014) Chinese Foreign Direct Investments: Risk Mitigation SHEN Hua / SHI Weiyi and Policy Responses (2012) Technology Roadmap and Development Strategy CHEN Ling / for China’s Electric Vehicle Industry (2012) SHEN Qunhong Industrial Development Towards a service economy: Chinese Service Industry Reform and Development Innovation JIANG Xiaojuan (2012) Next Generation Infrastructure: Vision and CHI Shufang Approaches to Development (2012) Comparative Study on the Science and Technology Innovation System and the New Energy Industry ZHANG Yongwei with Technology Innovation in China and the United States (2012) Comparative Study on Innovation Capability in WANG Gangbo / China and the United States (2012) XUE Lan / CHEN Ling Local Government's New Energy Technology DAI Yixin Options for Social Awareness (2011) The Impact of Changing Energy Prices on Industrial LI Shantong Restructuring, Income Distribution and CPI (2009) Comparing China’s and the European Union’s Low- CHEN Ling Carbon Innovation and Policy (2009) Regulatory and Consumption Policies to Improve Energy Conservation and Emission Reduction by ZHANG Yongwei the Chinese Automobile Industry and to Increase Their Competitiveness (2008)

1 3 Research Field Project Name Project Chairs *China's high technology product classification XUE Lan / mechanism and related policy research (2007) ZHANG Yansheng Industrial Comparison of Chinese and Foreign Prices of CHEN Xiaohong Development Refined Oil Products (2007) County government financial management HOU Yilin sampling survey analysis (2007) Top Design and Mode Selection for Reform of State- CHEN Qingtai / owned Enterprises (2014) WU Jinglian Modes of “Local Urbanization” and “In-situ LI Qiang Urbanization” in China (2013) The Chinese Public Governance System Reform XUE Lan (2012) Research on the Chinese Financial Administrative HOU Yilin System (2008) BAIChong-En / Reform of China’s Health Care System (2007) LIU Yuanli China-Japan Policy Comparison: Urbanization TOKUCHI Tatsuhito / Studies (2013) TOSHIYA Tsugami Japan's Earthquake Emergency Management SHEN Hua System (2011) Institutional China Science and Technology Funding System: Transition Ru Peng / XUE Lan Problems and Solutions (2011) China’s Role in International Development (2010) ZHANG Yanbing Transformation of Urban Villages: Model, TAO Ran Challenge and Breakthrough (2010) "Reform of the Health Care System: Financial Arrangements, Incentive Mechanisms, and YU Qiao Competitive Choice" (2008) Reform of the Health Care System in Suqian (2007) WEI Fengchun Management Reform in the Provision of Medical SHEN Qunhong Services in China (2007) International Comparison of the Social Environment for Training, Selection, and Utilization of Talent MENG Jianjun (2006)

Note: topics in bold are major projects and/or issues; topics in normal font are considered as emergency projects. *Ministry of science and technology support project

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Academic Activities ■ CIDEG 10th Anniversary Academic Series ● CIDEG 10th Anniversary Academic Forum: Masahiko Aoki and Francis Fukuyama Lecture on State Governance and Corporate Governance CIDEG kicks off its 10th anniversary with a series of academic activities on the afternoon of Apr. 21st, the first seminar was held at the Sunshine Hall of Luomu Building, Tsinghua University. Prof. Francis Fukuyama, the Olivier Nomellini Senior Fellow of Freeman Spogli Institute for International Studies (FSI) at Stanford University, and Prof. Masahiko Aoki, the Emeritus Professor at Stanford University, former President of the International Economic Association and Joint Chairman of CIDEG Academic Committee, were invited to lecture on the theme of “State Governance and Corporate Governance”. Mr. TOKUCHI Tatsuhito, CIDEG Board Member, hosted the seminar. Prof. XUE Lan, Dean of SPPM and Director of CIDEG, gave a welcome speech. He introduced the purpose for which CIDEG was set up and stated that CIDEG has established an active research platform for a decade with support from a number of prominent scholars and obtained abundant research achievements.

First is the keynote lecture entitled “Political Order” by Prof. Francis. He started with interpretations of concepts of laws, national capacity and democratic accountability, believing that a proper political system needs to achieve the right balance between the three. Prof. Francis also analyzed American government gridlock as the result of balance of power caused by the development of legal system and self-government in the US, and regulations and restraints exerted on the state power by China’s legal system established since the Cultural Revolution, and finally elaborated the state governance issues in both countries. Prof. JI Weidong, Dean of KoGuan Law School at Shanghai Jiaotong University and CIDEG Academic Committee Member, made brilliant comments.

Followed by the keynote lecture on “Three Merits of The Rule of Law in the Corporate Domain” by Prof. Masahiko Aoki, he decomposed sources of per capita GDP growth into different supply sides by using a simple accounting method, and elaborated on two aspects: interpretation of China’s economy in the new normal and projection on the future economic growth. Prof. Aoki analyzed China’s economic growth over the past twenty years and expressed the view that the past high growth mainly relied on the contribution of demographic dividends and the Kuznetz (Lewis) effect; in the future, attention must to be drawn to the control of the corruption and professionalization of the corporate management contributing to TFP growth and human capital accumulation to sustain economic growth in the China’s new normal. Prof. ZHOU Li’an from Guanghua School of Management of Peking University and Mr. QIN Xiao, Chairman of the Board of Boyuan Foundation and Board Member of CIDEG, commented on the lecture.

1 5 ■ CIDEG 10th Anniversary Academic Series ●CIDEG 10th Anniversary Ceremony & Academic Seminar

On Oct. 25th, 2015, CIDEG 10th Anniversary Celebration & Academic Seminar was held in Tsinghua University. More than one hundred Chinese and overseas scholars and experts were invited to the event.

Chairman of CIDEG Board Mr. CHEN Qingtai first reviewed CIDEG’s policy research, academic exchange and knowledge dissemination in areas of industrial development, environmental governance and institutional changes, and highly praised its fruitful research results and social influence. Mr. Kodaira Nobuyori, Vice President of Toyota Motor Corporation and CIDEG Board Member, said in his speech that Toyota is willing to assume social responsibilities, adhering to the concept of “based in China to make continuous contribution”, and continue to provide free sponsorship to CIDEG. Vice president of Tsinghua University Mr. JI Junmin expressed his gratitude to Toyota Motor Corporation for ten years’ support on behalf of Tsinghua University and President QIU Yong, he believed that China is now starved of research think tanks like CIDEG, who makes academic research serve a particular need of a strategic transformation with a mission to boost the role of Tsinghua University as a national think tank on a sustained basis.

Mr. WU Jinglian, joint chairperson of CIDEG Academic Committee, gave a speech entitled “Major Drivers of China’s Economic Growth”. He stated that Chinese economy entered the downlink channel from 2011, thus how to keep economic growth steady and over difficulties, they are problems for China to solve.

Later, Prof. Ryoji Noyori, 2001 Nobel laureate in Chemistry, foreign member of Chinese Academy of Sciences and Director of the Center for Research and Development Strategy at the Japan Science and Technology Agency, was invited to give a keynote speech on “Science & Technology and the Next Society”. Prof. Ryoji shared his research experience and came up with the conclusion that science, technology and innovation are most needed in the next society, and he believed that science can be very helpful in the forging of real values and philosophy, technical invention requires careful planning and continuing efforts, while innovation needs to integrate science, technology, social environment and demand. In his opinion, the future society is moving toward a civilized society with due respect to the culture.

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● Workshop on “Masahiko Aoki’s Academic Thoughts” and Book Donation Ceremony The first session in the afternoon is the workshop on “Masahiko Aoki’s academic thoughts”. It’s specially designed to commemorate Prof. Masahiko Aoki, one of CIDEG’s founders, and moderated by Prof. WU Jinglian, Joint Chairman of CIDEG Academic Committee. Prof. QIAN Yingyi, Dean of the School of Economics and Management, CIDEG Board Member and CIDEG Academic Committee Member, Tsinghua University and Prof. Takeo Hoshi from Stanford University respectively talked about their years with Prof. Aoki Masahiko. Prof. CHEN Qingtai, Chairman of CIDEG Board and Prof. BAI Chong-en, Vice-Dean of the School of Economics and Management, Tsinghua University and CIDEG Academic Committee Member, Mr. Tokuchi Tatsuhito, CIDEG Board Member and Former Managing Director of CITIC Securities Corporation, Prof. ZHOU Li-an of Guanghua School of Management, Peking University, Prof. CHE Jiahua of School of Economics, Fudan University, Mr. LI Bo, Director of the Monetary Policy Department of the People’s Bank of China and Prof. XUE Lan, Dean of SPPM and CIDEG Director, Tsinghua University attended and spoke at the seminar. Scholars commemorated the academic contributions made by Prof. Masahiko Aoki in this way.

A book donation ceremony was held during the ceremony. Prof. Masahiko Aoki, professor emeritus of Stanford University, president of the International Economic Association, founder of CIDEG and joint chairman of CIDEG Academic Committee, passed away due to a lung disorder at Stanford Hospital on July 15th, 2015. His wife, Mrs. Reiko Aoki and their daughter donated the professor’s books gratis to CIDEG by his will.

● Forum on “ China’s Economic Development and Urbanization” In the afternoon of October 25th, 2015, the forum on “China’s Economic Development and Urbanization” was held as a part of CIDEG 10th Anniversary Ceremony, chaired by Mr. Tokuchi Tatsuhito, CIDEG Board Member and Former Managing Director of CITIC Securities Corporation. Prof. Akira Koshizawa, Emeritus Professor at Hokkaido University, first gave a speech, mainly talking about the urban construction and urbanization in China based on Japan’s experience. Prof. TAO Ran of the School of Economics at Renmin University of China gave a speech on “Urbanization Mode in China: Logic and Challenge”. Mr. ZHANG Guohua, Director of China Center for Urban Development of NDRC, gave a speech on “Combination of Economics and Town Planning - Unity of Knowledge and Practice”. CIDEG Board Chairman CHEN Qingtai, joint chairperson of CIDEG Academic Committee WU

1 7 Jinglian, Dean of SPPM an d Director of CIDEG XUE Lan and other CIDEG board members including Prof. Barry Naughton from University of California, San Diego, Prof. HU An-gang of SPPM, Prof. Christine Wong of the Center for Contemporary for Chinese Studies at the University of Melbourne, Prof. WANG Chenguang of the Law School of Tsinghua University, Prof. WANG Ming of SPPM and XIAO Meng, Deputy Editor of Comparative Studies, joined in the discussion on China’s urban construction and urbanization.

● CIDEG 10th Anniversary Symposium 1: Opportunities and Challenges for China’s Industrial Development

On Sept. 20th, 2015, the CIDEG 10th Anniversary symposium on “Opportunities and Challenges for China’s Industrial Development” was held in the School of Public Policy and Management, Tsinghua University. CIDEG Board Chairman CHEN Qingtai convoked and chaired the symposium. Over a dozen academic experts and research fellows in the field of industrial development were invited. Prof. XUE Lan, Dean of SPPM and Director of CIDEG moderated the meeting.

CIDEG board chairman CHEN Qingtai addressed the workshop, indicating that industrial development has always been CIDEG’s major research direction, and this is the time to convoke the workshop in the context of CIDEG 10th anniversary and the upcoming third industrial revolution. Chairman CHEN then gave a keynote speech on “Promote Industrial Adjustment” based on the current situation of industrial development. The three topics for discussion were institutional environment, focus area and top-level design of the industrial development. Mr. HU Zhijian, President of Chinese Academy of Science and Technology for Development, Ministry of Science and Technology, and Mr. LV Zheng, former director of the Research Institute of Industrial Economics, Chinese Academy of Social Sciences, then gave speeches on “industrial development and innovation” and “New Growth Factors in the Manufacturing Industry”, and had a heated discussion with guests who were present at the meeting over issues and researches related to industrial innovation and industrial structure upgrading. Assistant Prof. GAO Yuning of the SPPM and ZHANG Wei, associate professor of the School of Economics and Management and director of Tsinghua’s X-Lab respectively introduced their research projects entitled “Chinese Industrial Policies in Global Value Chains” and “Ups and Downs in China’s Photovoltaic Industry: Analysis, Reflection and Inspiration”, which are both funded by CIDEG. The guests later discussed interesting issues with the speakers. Mr. JIANG Feitao from the Research Institute of Industrial Economics, Chinese Academy of Social Sciences and Mr. CHEN Jin, professor of Department of Innovation, Entrepreneurship and Strategy and director of Research Center for Technological Innovation at Tsinghua University respectively delivered speeches entitled “How to Ensure the Formulation of Desirable Industrial Policies by the Government” and “Outlook for Industrial Innovation in the 13th FYP”. The guests expressed optimism for the future of China’s industrial development, but also raised practical questions about reforms in the industrial sector.

Being one of CIDEG 10th Anniversary Academic Series, the symposium is of great significance to make clear CIDEG’s future research direction and review the research achievements of the past decade. It also has a profound impact to organize experts and scholars in industrial development to conduct pragmatic research and discussion in the context China’s economic slowdown. CIDEG will continue to highlight the industrial development in the fields of research, and push it to change and innovate with its research achievements.

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■ CIDEG 10th Anniversary Academic Series ● CIDEG 10th Anniversary Symposium 2: Future for China’s Environmental Governance

On Oct. 11th, 2015, CIDEG 10th Anniversary Symposium on “Future for China’s Environmental Governance” was held in the School of Public Policy and Management, Tsinghua University. Mr. GAO Shiji, Director of the Institute of Resources and Environmental Policy, Development Research Center of the State Council, Senior Research Fellow of the Development Research Center of the State Council and CIDEG Academic Committee Member, chaired the workshop. More than ten academic experts and researchers in environmental governance were invited to the symposium.

CIDEG Director Prof. XUE Lan introduced the developments and achievements of CIDEG in the past decade in his welcome speech. He stated that the environmental governance has always been the focus of CIDEG’s research, and this knowledge-intensive policy issue now has become the most urgent issue in China. He expects to further clarify CIDEG’s direction for future research as a think tank, and to make a real contribution to China’s environmental governance with the use of our research results through this workshop.

There were three topics for discussion at the workshop, environmental degradation, environmental governance and the combination of environmental governance and other areas. Dr. WANG Hua of the Policy Research Center for Environmental and Economy of the Ministry of Environmental Protection first lectured on “Current Situation and Challenges of Environmental Social and Governance and Policy Suggestions”, Mr. ZOU Ji, director of the National Center for Climate Change and International Cooperation, National Development and Reform Commission, gave a speech on “ Development Path Innovation of China’s Climate Change Policy Focusing”, research fellow SU Yang from the Development Research Center of the State Council and Prof. ZHU Xufeng of SPPM of Tsinghua University, gave presentations on two specific issues associated with environmental governance, respectively entitled “Governance Mechanism of Urban Landfills and Ecological Civilization Construction” and “ Experimental Governance of China’s Low-carbon Development Strategy – Policy Assessment of A Quasi-natural Experiment”. Associate research fellow XIN Jinyuan, Institute of Atmospheric Physics, Chinese Academy of Sciences, and research fellow FAN Ying, Institute of Policy and Management, Chinese Academy of Sciences, respectively delivered speeches on “Research on Characteristics of Air Pollution in Beijing and its Health Effect” and “Coordination between Carbon Market and Energy Policy”. After the keynote speech session, the guests discussed and shared insights on the problems, challenges and relevant policies associated with environmental governance.

1 9 ● CIDEG 10th Anniversary Symposium 3: State Governance Reform and Innovation On Oct. 12th, 2015, the CIDEG 10th Anniversary Symposium on “State Governance Reform and Innovation” was held in the School of Public Policy and Management, Tsinghua University. CIDEG Board Member LU Mai chaired the symposium. More than ten experts and scholars were invited.

CIDEG Director, Prof. XUE Lan said in his speech that the third plenary session of the 18th CPC Central Committee clearly put forward the overall objective of deepened reform, that is to promote the modernization of our national governance capacity, and CIDEG is eager to contribute to the improvement of national governance in such circumstances and expects to further clarify its direction for future research through the in- depth discussion over issues concerning national governance at this workshop. Mr. LU Mai, as the chairman of this event, affirmed the developments and achievements of CIDEG in the past decade, and stated that how to deepen the reform is related to the realization of the overall objective to enhance modernization of our national governance system and governance capacity. It now comes at a critical time for China’s reform, and it’s a great opportunity to discuss deeply with these experts the relationship between the NPC and the central and local governments, and governance in specific field, and is also of great significance for CIDEG’s future research.

There are three topics for discussion during the symposium, the real-life authority-responsibility relationship between the NPC and governments, the key to the promotion of our national governance capacity, and how to surmount the problem of chronic shortage of education and medical resources and the imbalance of resources allocation. Mr. XU Shanda, president of the SEEC Research Institute and Former Deputy Director of the State Administration of Taxation, first gave a speech on “The Current Situation and Problems of SOEs Reform”. Assistant Professor LUO Yi’nan of SPPM at Tsinghua University provided a description, through the “Historical Analysis of Experience and Lessons of Policymakers Establishing Industrial Development Governance System” during the Great Leap Forward from 1958 till 1959, of why it is difficult to regulate the local government. ZHANG Changdong, Assistant Professor of the School of Government, Peking University, delivered a speech on “Why Social Governance Get Trapped” for Prof. ZHANG Jing, Department of Sociology, Peking University, and then gave a speech concerning his recent research on “The Role and Limitations of the Local People’s Congress in National Governance”. Dean of SPPM and CIDEG Director, Prof. XUE Lan gave a speech on “China’s Health Care Reform – Where is the Way Out”. Prof. XUE Lan talked about current problems of health care system in his speech, to which he also provided solutions, and then had a heated discussion with the guests.

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■ High-level Meetings ● CIDEG 16th Academic Committee Meeting

On Apr. 5th, 2015, CIDEG has held the 16th Academic Committee Meeting in room 302 at School of Public Policy and Management, Tsinghua University. The meeting focused on reviewing 2015 CIDEG major and applied policy projects, was attended by Mr. CHEN Qingtai, Chairman of CIDEG Board, Mr. WU Jinglian and Prof. AOKI Masahiko, joint-Chairpersons of Academic Committee, Board members and Academic Committee members including BAI Chong-En, TOKUCHI Tatsuhito, GAO Shiji, HU Angang, HUANG Peihua, TSUGAMI Toshiya, JIANG Xiaojuan, JI Weidong, LIU Zunyi, QIN Xiao, QIAN Yingyi, WANG Chenguang, XUE Lan, XIAO Meng, ZHA Daojiong, Deputy Director of CIDEG CHEN Ling, some research fellows and representatives from Toyota.

Chairman of the Board Mr. CHEN Qingtai opened the meeting by welcoming the board members and academic committee members and thanked them for their participation in CIDEG 16th meeting during Ching Ming holiday. In his speech, Chairman CHEN noted that a recent idea storm came up in March as China’s “two sessions”, China Development High Level Forum 2015 and Boao Forum were held consecutively, an unprecedented discussion was conducted by experts in academic, political and other social circles on the comprehensive political, economic and social reforms currently facing China. Therefore, it is of great importance to discuss and review 2015 CIDEG research topics in this context. Followed by remarks by Prof. Masahiko Aoki, Joint- Chairperson of CIDEG Academic Committee, he affirmed the research findings on industrial development and environmental governance and the contribution for developing talents by CIDEG in the last decade. Prof. AOKI Masahiko, referring to China’s development situation, stated that the nation was facing a significant transition and had to evaluate sustainable development through TFP (total factor productivity) under the “New Normal”, thus the concept of “New Combination” was proposed recently for reference. Meanwhile, Prof. AOKI Masahiko suggested that China and Japan shared a range of issues including population aging, urban governance and environment at the present time, the importance of mutual exchanges between two countries are further increasing both in doctrine and policy, so CIDEG would be playing a more important role accordingly. Later, Mr. WU Jinglian, Joint-Chairperson of CIDEG Academic Committee, delivered a speech, in which he highlighted that CIDEG’s research around industrial development and environmental governance touched upon major issues in China for the time being, referring to industrial development and environmental governance being mutually reinforcing and contradictory, he expressed the view that we need to think how to handle such relations.

2 1 ■ CIDEG Academic Salon

● No.117 CIDEG Academic Salon Barry Naughton: Is There a “Xi Model” of China’s Economic Reform? On Mar. 11th, 2015, Barry Naughton, Professor of School of Global Policy and Strategy, University of California, San Diego, and CIDEG Academic Committee Member, was invited by CIDEG to deliver a speech on “Is There a XI’s Model of China’s Economic Reform”. Economic reforms have become a significant part of XI Jinping’s policy agenda. XI Jinping has set up an organization to oversee the reform process, but has also maintained top-down discretion in deciding which reform model to implement. This top-down reform model is very different from the bottom-up reforms of the 1980s, or the institutional reforms of the 1990s. Barry noted that through most of 2014, it was not clear if a serious push for economic reform was developing, however, since about September 2014, we see significant steps forward in at least three areas including fiscal system reform, agricultural land reform and Accelerated Internationalization, which are genuine market-oriented economic reforms. Barry highlighted six characteristics of the Xi Model of economic reform and stated that it’s too early for a real conclusion as many people are skeptical about the possibilities of “authoritarian reform”. There is no doubt that we can begin to discern certain elements of a Xi model, but specific characteristics and future development of such model remain to be seen.

● No.118 CIDEG Academic Salon Graham Allison: Destined for War -- Can the U.S. and China Escape Thucydides’s Trap? On Mar. 16th, 2015, Graham Allison, professor of Harvard Kennedy School and director of Belfer Center for Science and International Affairs, Harvard University, was invited by CIDEG to give a keynote speech on “Destined for War: Can the U.S. and China Escape Thucydides’s Trap?”. ZHA Daojiong, professor of School of International Studies at Peking University and CIDEG Academic Committee Member, was the commentator, and Prof. XUE Lan, Dean of SPPM and CIDEG Director, moderated the event. Graham first introduced the idea and historic background of the “Thucydides’s trap” as well as the situation in WWI, then explained how he see the relationship between the U.S. and China. He said that if we see the Thucydides’s trap as a part of history of international politics, it involves not only the U.S. and China, but is about the global order associated with the future of humankind; he believes the U.S. and China can finally escape the trap. He stated that we still have to think carefully about policy decisions that will have positive or negative influence on the situation. The audience of more than eighty people inside and outside Tsinghua University had in-depth discussion and exchange with two professors in the Q&A session.

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● No.119 CIDEG Academic Salon Bert Hofman: Key Challenges for the New Normal

On Apr. 7th, Mr. Bert Hofman, the World Bank's Country Director for China, Korea and Mongolia in the East Asia and Pacific Region, was invited to give a keynote speech on “Key Challenges for the New Normal” at the School of Public and Policy Management, Tsinghua University. Prof. YU Qiao, Researcher of CIDEG, was the commentator, and Prof. XUE Lan, Dean of CIDEG, moderated the salon. As the World Bank’s Director and Chief Economist in the Beijing office, Mr. Hofman mainly engages in economic analysis and policy consulting. In his speech, Mr. Hofman described the new normal of Chinese and global economy. He noted that China has entered a phase of lower growth, with the aspiration to make this higher quality, more equitable and more efficient growth. Building on two studies the World Bank has done together with the Development Research Center of the State Council, Mr. Hofman continued to discuss some of the key economic policy challenges that China needs to tackle in the next five year plan to realize its objectives.

● No.120 CIDEG Academic Salon Yew Wei Lit: NIMBY, Malaysian Style: The Case of the Lynas Rare Earth Plant On June 10th, 2015, Yew Wei Lit, a Ph.D. candidate in the Depart of Asian and International Studies, City University of Hong Kong, was invited to give a speech on “NIMBY, Malaysian Style: The Case of the Lynas Rare Earth Plant”. The speaker first gave an overview of the background of the conflict, believing that the deadlock is caused by the public’s political distrust of government, which is underestimated in its complexity as being analyzed in the past. In order to avoid this deadlock situation, the impact of such political distrust need to be systematically taken into account; the transparent public negotiation mechanism should be applied before the project is approved, meanwhile enterprises should be actively involved. More than twenty teachers and students inside and outside Tsinghua University attended the salon.

2 3 ■ CIDEG Academic Salon ● No.121 CIDEG Academic Salon ZHANG Ming: China’s Outward Direct Investment – Actuality, Trends and Risk On June 16th, 2015, Mr. ZHANG Ming, director of the Department of International Investment, Institute of World Economics and Politics, CASS and assistant director of Research Center for International Finance, CASS, was invited by CIDEG to deliver a keynote lecture on “China’s Outward Director Investment – Actuality, Trends and Risks”. Director ZHANG Ming elaborated the following four aspects, the actuality of China’s ODI, main causes and determinants of China’s stalled outward director investment, China’s outward investment prospects and overseas venture capital ranking system. CIDEG Vice-director CHEN Ling moderated the lecture. Around thirty teachers and students inside and outside Tsinghua University attended the salon.

● No.122 CIDEG Academic Salon HUANG Junling: The Influence of Large-scale Wind Power Integration on the U.S. Electricity Markets On July 2rd, 2015, Mr. Junling Huang, the Post-Doc of Belfer Center for Science and International Affairs at Harvard Kennedy School, visited CIDEG and delivered a keynote speech about “The Influence of Large-scale Wind Power Integration on The U.S. Electricity Markets”. In 2014, wind power accounted for 4.4% of the total demand for electricity in the U.S. Recently, a research report released by the U.S. Department of Energy pointed that wind power will meet 20% of America's electricity demand in 2030. In the competitive electricity market, which is managed by the regional transmission operators or independent system operators, the large scale wind power integration will affect the settlement price of power and electric power system reliability. Later, Dr. Huang introduced the physical characteristics of wind power, the basic structure of the power system and the basic rules of the electricity market. He also analyzed the influence of large-scale wind power integration on the U.S. electricity markets.

● No.123 CIDEG Academic Salon Robert U. Ayres: The “Bubble Economy” after the “Grexit” Episode On Sept. 17th, 2015, Prof. Robert U. Ayres of INSEAD, who originated the concept of “industrial ecology”, was invited to give a lecture on the “Bubble Economy” in the School of Public Policy and Management, Tsinghua University. Robert first highlighted two issues that have something to do with bubble economy in his opinion: the first thing is the fact that the economic bubble, that has always been there in the capitalist economy, gets more overwhelming and damaging; the second refers to the concept of externality in economic theory. He believes the real world is far more complicated than a simple market model, because different problems touch on different market entities. Robert later reviewed several major economic bubbles we have lived through since the 17th century, and further probed into a series of damages that might occur. Finally Robert raised a question: how should we prevent and control economic bubbles as well as its expansion in the absence of the gold standard.

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● No.124 CIDEG Academic Salon Cynthia Giles: Economic Prosperity and Public Health--The U.S. Experience

Ms. Cynthia Giles, assistant administrator of the Office of Enforcement & Compliance Assurance, Mr. Phillip Brooks, Director of the Office of Air Enforcement at U.S. Environmental Protection Agency and Mr. HUANG Jingwei, Director of the Office of Environment, the U.S. Embassy in Beijing visited the CIDEG on Sept. 28th, 2015. Cynthia was invited to give a lecture on “ Economic Prosperity and Public Health” based on the U.S. experience. The meeting was moderated by vice-director of CIDEG CHEN Ling and commentated by Prof. WANG Canfa of the Research Institute of Environmental Resource Law, China University of Political Science and Law.

Cynthia first introduced the environmental standards the U.S. set up to protect public health and reduce pollution, and described the creation of its “Next Generation Compliance” strategy and the enforcement work. The strategy is to adopt advanced monitoring technology to realize electronic reporting in real time and get publicly available data, in order to work with the general public on environmental damage controls. She stated the similar strategy could be utilized in China, including effective rule design – compliance “built in”, advanced monitoring, independent auditors, publicly available information and data analytics. Many students raised questions based on the U.S. experience, esp. with regard to technology and enforcement.

● No.125 CIDEG Academic Salon Barbara Stallings: Japan, China, and Korea——Patterns of ODA in East Asia On Nov. 20th, 2015, Barbara Stallings, professor at the Watson Institute for International Studies of Brown University and the Editor in Chief of Studies in Comparative International Development (SCID), was invited to visit CIDEG and give a speech about “Japan, China, and Korea: Patterns of ODA in East Asia”. Barbara has reached her own conclusion on East Asian aid models through comparing the different ways that Asian and Western nations provide foreign assistance, and also through the Vietnam case analysis. She suggests Asian donors have a distinct mode of operation in comparison with the “West”, such as Asian donors give an unusually high share of aid to their neighbors, more with purposes of economic growth, provide larger amounts assistance via bilateral loans, and have closer public-private cooperation. This pattern comes largely through their own historical development experience, and this type of aid has been quite beneficial to recipient countries in Southeast Asia.

2 5 ■ Research Seminars ● Chinese NGOs' Ways to Go Abroad in the Context of One-belt and One-road On Apr. 29th, 2015, Mr. Fred Krupp, Chairman of EDF, and others paid a visit to the School of Public Policy and Management, Tsinghua University, and communicated with Chinese experts and scholars on “Chinese NGOs’ Ways to Go Abroad in the Context of One-belt and One-road”. The workshop was co-organized by SPPM of Tsinghua University, EDF, China Council for International Cooperation on Environmental and Development (CCICED), China-ASEAN Environmental Cooperation Center of Ministry of Environmental Protection, China Association for NGO Cooperation (CANGO) and CIDEG. Prof. XUE Lan, Dean of SPPM and Director of CIDEG, moderated the workshop.

Fred first focused on the EDF and described how this grassroots organization developed into an international NGO with global influence and more than a million members under his leadership in the past thirty years. Fred said Chinese NGOs should promote extensive international exchange and cooperation, and internationalized NGOs will be important in building China’s One-belt and One-road. China has got a solid understanding of the consequence and cost of economic development at the expense of environment. The experience will enable other countries to progress faster in environmental protection. Later, experts and scholars at the meeting including HUANG Haoming, secretary-general of CANGO, LIU Zhenguo, deputy director of General of State Bureau of NGO Administration of Ministry of Civil Affairs, FANG Li, assistant secretary-general of CCICED, WANG Ming, professor of SPPM, director of Institute for Philanthropy and member of CIDEG Academic Committee at Tsinghua University, and SUN Tongquan, researcher of Rural Development Institute at Chinese Academy of Social Sciences, offered analysis and interpretations on this topic from various perspectives.

● Local Governance and Local Government Innovation In June 13th, 2015, CIDEG assisted to hold the “Local Governance and Local Government Innovation – US and Chinese Local Officials Talk” at the School of Public Policy and Management, Tsinghua University. Joseph A. Curtatone, Mayor of Somerville, Massachusetts, the U.S. is invited to give a keynote speech. Mr. LU Mai, Secretary General of China Development Research Foundation and CIDEG Board member, moderated the talk.

Joseph shared his experiences in local governance and innovation in Somerville. In order to make Somerville a more open city, they cooperated with Harvard Kennedy School and turned the city into an innovative lab to improve the management efficiency and service of the government through more innovative methods. He also introduced the idea of working with local communities to manage the city. He further stated that how to create a sustainable environment and build a mobile and futuristic city is a question that every local government should ponder. Later, Mr. ZHANG Jiaming, vice mayor of Dongcheng District of Beijing, briefed on the efforts made by the government of Dongcheng district in the new era of urban governance, and elaborated on major concern of the common people such as traffic congestion, environment governance, medical service and schooling. Mr. MA Yanze, vice mayor of Shangcheng District of Hangzhou, gave details on innovation in public management at the district level in the case of Shangcheng district. Finally, Prof. WANG Youqiang of SPPM and Prof. Anthony Saich from Harvard University commented brilliantly on guests’ speeches.

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● Industrial Development and Institutional Transition On June 25th, 2015, Dr. CHEN Ling, CIDEG Vice- director and associate professor of SPPM, hosted an academic seminar on “Industrial Development and Institutional Transition”. YU Hanzhi, PhD candidate of SPPM delivered an academic report entitled “Attribute Analysis of Human Genes – Knowledge Attribute and Social Construction ”, PhD candidate of SPPM JIANG Lingfei presented a report entitled “Regulatory Lag and Complementary Assets in the LSEV industry”, PhD candidate of SPPM ZHANG Xianpeng gave a presentation on “ Research on the BOT policy in Taiwan – In the Case of Taipei Cultural and Sports Complex”, PhD candidate of SPPM ZHANG Ke gave a speech on “Cadre Management System and Fiscal Decentralization Policy Diffusion – Reform of ‘Province Directly Governing County’ ”, postdoc of SPPM ZHAO Jing delivered a report on “How Can Key Events Become Focus Events? Policy Entrepreneurs’ Strategy in Agenda-Setting- Agenda – in the UHV Projects in China”, and Dr. FAN Shiwei, assistant professor of Central University of Finance and Economics, gave an academic report entitled “Rethink the Electricity System Reform Deadlock in China Since 2002 – A Policy Process Perspective”. About twenty teachers, postdocs, PhD candidates and visiting scholars of Tsinghua University attended the seminar.

● Adaptive Risk Management in Precision Medicines The “Workshop on Adaptive Risk Management in Precision Medicines – The Case of Collection and Use of Genetic Information” was held in the School of Public Policy and Management, Tsinghua University, Aug. 28th-29th, 2015. The workshop was jointly organized by Tsinghua University, Massachusetts Institute of Technology, École Polytechnique Fédérale de Lausanne (EPFL) and International Risk Governance Council, and supported by CIDEG. Prof. XUE Lan, Dean of SPPM and CIDEG Director, Dr. Gerard Eecher of Office of the President, EPFL and Prof. Kenneth Oye, Director of the MIT Program on Emerging Technologies (PoET) and a member of the MIT Center for Biomedical Innovation, co-chaired the workshop.

The workshop drew more than two dozen participants including basic scientists, social science researchers, ethicists, industry practitioners, lawyers, from different nations and regions such as China, the U.S., Finland, India and Singapore to communicate and discuss in depth the three goals of the roundtable, that covers: Firstly, to identify risk governance and regulatory issues in the development of precision medicines, with attention to the role of genomic data in providing evidence on the safety, efficacy and effectiveness of novel therapeutics under conditions of uncertainty; secondly, to describe

2 7 and assess commonalities and differences in how China, the US and Europe have regulated precision medicines and managed access and use of genomic data, in the context of the high priority assigned to development of precision medicines by China, India and OECD nations; thirdly, to identify potential national and international policy initiatives and to specify associated academic research agendas with the end of fostering more effective adaptive regulation of benefits and risks of precision medicines and genomic data access and use. In the following discussion session, guests who attended the meeting gave speeches on “Scientific and Technical Landscape”, “Economic and Regulatory Landscape” and “Future Policy Initiatives and Research Needs”, and fostered interaction across countries and across areas of expertise on that base.

● New Normal and State Governance Modernization On Oct. 24th, 2015, the School of Public Policy and Management at Tsinghua University held a workshop on “New Normal and State Governance Modernization”, one day prior to the fifth plenary session of the 18th CPC Central Committee, to celebrate SPPM 15th Anniversary. Experts and scholars from policy sectors including Development Research Center of the State Council, National Development and Reform Commission and Ministry of Civil Affairs, academic institutions including Chinese Academy of Social Sciences and China National School of Administration, and Tsinghua alumni who now practice public governance, were invited to communicate and exchange views on topics around “the five year plan”, economic development, central-local relations, innovation driven development, social organization and social governance, involving more than 200 participants. CIDEG co-hosted the meeting.

The morning session began with the keynote speech on “Development Assessment of the Twelfth Five Year Plan” by Prof. HU An-gang, Director of the Center for China Studies and CIDEG Academic Committee Member, Tsinghua University, followed by the speech on “The Basic Thoughts on Economic Transformation and Upgrade in the 13th Five Year Plan” by XU Xianping, former deputy director of the National Development and Reform Commission, and ended with the speech on “Innovation Driven Development Policy Issues” by CHEN Qingtai, Former Deputy Director of the Development Research Center of the State Council, Founding Dean of SPPM and CIDEG Board Chairman at Tsinghua University.

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● Policy Process in China “The final workshop of Policy Process in China” was held in Tsinghua University on Oct. 27th- 28th, 2015, Prof. Sebastian Heilmann, President of Mercator Institute for China Studies and his team were invited to attend the meeting. The participants include Prof. Barry Naughton, a famous scholar in China studies in the University of California, San Diego, Prof. ZHU Yapeng of School of Government of Sun Yat- Sen University, Prof. HU Wei of the Party School of Shanghai Municipal Party Committee, Prof. LI Ya from Beijing Institute of Technology, Prof. ZHU Tianbiao of the School of Humanities of Zhejiang University, and Prof. XUE Lan, Prof. ZHU Xufeng, Associate Prof. MEI Ciqi, Associate Prof. CHEN Ling, Assistant Prof. MENG Ke and Assistant Prof. LUO Yi-nan of SPPM of Tsinghua University and more than twenty young scholars from other universities in Beijing. There are five sub-issues for discussion at this meeting: the role of government and policy change, top elites and policy entrepreneurs, policy formulation, policy test and study, and policy process and the rule of law, papers of eleven Chinese and foreign scholars were presented at the meeting, and commentated by the guests who then thoroughly discussed the policy process in China. Finally, experts who attended the meeting had a deeper round table discussion on research approaches related to the policy process in China.

The workshop is co-hosted by Mercator Institute for China Studies, Brown University and CIDEG, aiming to promote academic exchanges and discussions between domestic and foreign experts on policy process in China, to establish a network of scholars for the research on policy process in China, and promote relevant theoretical research. The first and second workshops were held in Berlin, Germany and Providence, the U.S., on Jan. 17th- 18th, 2015 and Aug. 27th-28th, 2015 respectively.

■ Academic Lectures ● David M. Malone, Under-Secretary-General of UN: The UN’s Sustainable Development Goals -- Unmanageable Process but Important Outcomes “Tsinghua Forum”, co-hosted by the Academic Committee, Tsinghua University and CIDEG, was held at the main building of Tsinghua University on May 28th 2015. Prof. David M. Malone, Under-Secretary- General of the United Nations and Rector of the UN University (UNU), delivered a keynote speech on “The UN’s Sustainable Development Goals: Unmanageable Process but Important Outcomes”. Prof. XUE Lan, Dean of SPPM and CIDEG Director, hosted the event. Prof. Malone delivered remarks mainly issues concerning his own experiences, development of the international situation after the war and development process of the UN’s sustainable development goals. Around eighty people attended the forum.

2 9 ■ Academic Lectures ● Joseph E. Stiglitz, Nobel Laureate in Economics: The Next Stage for China’s Development Strategy On Mar. 23rd, 2015, Joseph E. Stiglitz, Nobel Laureate in Economics, 2001, Professor of Columbia University and Honorary Professor of Tsinghua University, gave a lecture on “The Next Stage for China’s Development Strategy” at the School of Public and Policy Management of Tsinghua University, which has attracted a large audience inside and outside the university. Prof. XUE Lan, Dean of School of Public Policy and Management and CIDEG Director, and Prof. HU An-gang, CIDEG Academic Committee Member, attended the lecture as commentator. CIDEG researcher Prof. CUI Zhiyuan moderated the lecture.

Stiglitz first highlighted the five key challenges facing China: inequality, environmental degradation, economic instability, erosion of trust and economic adjustment. Under the circumstances of these five key challenges, Stiglitz believes that China’s 13th five-year plan is supposed to focus on pacing and sequencing. On one hand, there should be an appropriate balance between market, government and civil society, based on our understanding of limitations of markets; on the other hand, a set of rules must be set up to guide the market. He suggested we have to put thought into the identification of centripetal and centrifugal forces under the 13th five-year plan in order to achieve a more balanced distribution, thereby creating a more equal society. Stiglitz finally stated that in the context of weak global economy, economic growth should be promoted by public expenditure, consumption and investment rather than individual consumption, for instance, establishment of public transport system, public education system and investment in public health. Meanwhile, China and the world are supposed to be committed to making more investments.

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● HE Jianhun, etc.: Climate Negotiation Stimulation – Training Lecture Series for Tsinghua Delegation Sciences PO organized a student stimulation under the initiative of Paris Climat 2015: Make it Work by the end of May and invited 40 delegations consisting of 200 students from all over the world, the outcome of negotiation will be presented at the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change (COP21) that will take place in Paris in December 2015. 10 Tsinghua students are invited to participate in the stimulation in view of the friendly cooperation between two universities. CIDEG assists the registration for the stimulation and preparation and organization for lecture series.

On Mar. 15th, Prof. LUO Yong of the Center for Earth System Science of Tsinghua University delivered the first lecture, which focuses on the introduction of the effect of climate change science on the international climate negotiations and interpretation of the core conclusion of the IPCC’s fifth assessment report, and answered each question in detail concerning climate change science raised by students present.

On Mar. 22nd, Associate Professor ZHANG Chuanjie of the Department of International Relations of Tsinghua University gave the second lecture, introducing and analyzing common issues in international climate negotiations from the perspective of international politics.

On Mar. 26th, Prof. HE Jiankun, director of Energy, Environment and Economy Research Institute and Low Carbon Economy Lab of Tsinghua University, gave the third lecture. Prof. HE began with an introduction of the background on and situation of climate change, indicating that the US-China Joint Statement on Climate Change at APEC meeting and China’s 2020 Carbon Emission Reduction Target are two strategic choices to cope with domestic and international situations associated with the coordinated development of domestic resources, environment and economy and global response to climate change. China is now in economic transition to a low-carbon and green economy when the high-carbon and extensive economic expansion is now unsustainable, the task we are facing in order to fight climate change and achieve low-carbon development is to drive energy revolution, which is also an internal imperative to break free of constraints imposed by domestic resources and environment. Prof. HE finally stated that both the domestic and international situations should be taken into full account in addressing climate change. Global sustainable development is now facing ecological crises represented by climate change, and the global cooperation on climate change will initiate a radical transformation of economic and social development worldwide and profound changes on the global governance system.

On Apr. 2nd, Peter Senge, the founding chairperson of SOL and a senior lecture at the MIT Sloan School of Management, was invited to lecture on “Climate Change from a Systems Thinking Perspective” at the invitation of CIDEG for

3 1 Tsinghua students’ participation in student stimulation on climate negotiations in Paris. As the first foreign expert invited by CIDEG, Peter shared his insights analyzing challenges of climate changes from a systems thinking perspective. Peter noted the four disconnects on public recognition of climate change: exponential growth in greenhouse gas emissions; unknown threshold of its effect on climate change; delay in carbon emissions cut; and greenhouse gas emissions needs to be reduced below the removal rate level. These four disconnects are less understandable climate change issues. In the discussion session after the lecture, students had mutual communication with Peter on behalf of the contracting party.

On Apr. 9th, GAO Feng, special representative for climate change negotiations of the Ministry of Foreign Affairs, was invited to give the fifth keynote lecture of Tsinghua Climate Negotiation Stimulation Lecture Series. Director GAO briefed the participants on the course and essential questions of climate change negotiations, and expressed his expectation for the COP 21 Paris Climate Summit. He believes the future COP 21 Paris Climate Summit will not repeat what they have achieved in the Kyoto Protocol, but is supposed to highlight the self-determination concept, that is to say, a country’s action plan should be made by the country itself, all institutional designs are created around the concept.

■ Series Forum

● Tsinghua - CAIJING Series Forum on Modern Government and Public Governance No.3: On Property Tax On May 12th, “Tsinghua- CAIJIANG Series Forum on Modern Government and Public Governance No.3: On Property Tax” was held at the auditorium of the School of Public Policy and Management, Tsinghua University. The theme of the forum focused on the controversial reform of property tax, and a large number of influential experts and scholars from governments, enterprises and research institutes were invited to engage in hearted discussions concerning the legal basis and mechanism design of property tax.

Mr. SU Qi, Vice-Editor of CAIJING Magazine, hosted the first session of the forum with the subject of “Practical Challenges and Path to The Reform of Property Tax”. The Vice President of Chinese Housing Association REN Zhiqiang, Director of Urban-Rural Economic Development Institute of Chinese Academy of Social Sciences CHEN Huai and Professor of SPPM at Tsinghua University WANG Youqiang were invited to make keynote speeches and engage in on-site discussions. Prof. XUE Lan, Dean of SPPM and Director of CIDEG hosted the second half with the subject of “Property Tax Reform and Central & Local Finance”. XU Shanda, President of the Liaison Office of Financial and Economic Office and former Deputy Commissioner of State Administration of Taxation, and Professor of SPPM at Tsinghua University YU Qiao were invited to make keynote speeches and engage in on-site discussions. After key speeches, guests discussed and answered questions provided by the audience regarding institutional arrangements, policy-making process and tax burden of property tax.

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● China Energy Modeling Forum Inaugural Meeting On May 14th, 2015, the inaugural meeting of CEMF, short for China Energy Modeling Forum, co-organized by CIDEG, SPPM of Tsinghua University and Environmental Defense Fund (EDF), was held at the School of Public Policy and Management, Tsinghua University. A number of national and international research teams and experts in energy modeling were invited to attend the inaugural meeting. The meeting mainly focused on the history of and development experience in the national and international energy modeling, model developments and the cooperation between modeling teams, interactions between modeling teams and decision makers, and CEMF’s organization and working plans. CIDEG vice-director Dr. CHEN Ling moderated the meeting.

Prof. XUE Lan, Dean of SPPM and Director of CIDEG, Dr. Dan Dudek, Vice President of Environmental Defense Fund, and Prof. HE Jiankun, Dean of Institute of Low Carbon Economy at Tsinghua University and Chairman of CEMF Academic Committee, made opening remarks respectively. Prof. XUE Lan then introduced CEMF’s organization and working plans. Modeling related scenarios and models are to be discussed in year 2015, with a main focus on predictions of carbon emission, environmental pollution and energy consumption under the 13th FYP. CEMF will also organize unscheduled workshops to communicate regularly on the experience and achievements in model developments. In the second half, experts had an intensive round table discussion on the experience in modeling developments, international exchange and cooperation between energy modeling teams, energy modeling and policy decision.

CEMF aims at an interactive platform for national and international professional modeling teams and decision makers, to promote dialogues on policy analysis and decision in the area of energy, economic development, environmental protection, health and climate change, increase the modeling capacity of local research institutes and improve the scientific policy decision regarding energy and environment.

3 3 ■ Series Forum ● CEMF No.1: Paris Commitments and the13th Five-Year Plan Targets The First forum of CEMF “Paris Commitments and the 13th Five-Year Plan Targets” was held in Tsinghua University on Nov. 12th & 13th, 2015. This forum invited a number of energy modeling teams consisting about 40 members and scholars, such as from National Center for Climate Change Strategy and International Cooperation, State Information Center, Development Research Center of the State Council, Institute of Energy, Environment and Economy at Tsinghua University, Policy Research Center for Environment and Economy of the Ministry of Environmental Protection.

Prof. XUE Lan, Dean of SPPM of Tsinghua University, CIDEG Director and the director of CEMF addressed the meeting. Prof. XUE outlined the subject of this forum, which is “Paris Commitments and the13th Five-Year Plan Targets”, and hope that CEMF will enable different research teams to talk and exchange views and learn from each other, so as to provide service in scientific policy decision. Prof. HU An-gang, director of the Center for China Studies of Tsinghua University, Prof. HE Jiankun, vice chairman of the China Experts Panel on Climate Change, director of Low Carbon Economy Lab of Tsinghua University and chairman of the CEMF Academic Committee, and Dr. WANG Jinnan, vice president of Chinese Academy for Environmental Planning, Ministry of Environmental Protection, were invited to provide elaboration on relevant policies. After the elaboration, the guests then discussed and shared insights on their common concerns. On the second day, modeling teams exchanged views on TIMES model during the morning session moderated by Prof. ZHANG Xiliang, director of Energy, Environment and Economy Research Institute, then TIMES model’s application in the power and steel sectors were introduced by the associate research fellow LIU Qiang of the National Climate Change Strategy Research and International Cooperation Center, deputy-director LI Jifeng of Policy Stimulation Lab of State Information Center and Prof. ZHENG Siqi of the Institute of Real Estates Studies of Tsinghua University. The afternoon session had two parts: modeling team introduction and capacity building. Associate researcher TENG Fei, Institute of Energy, Environment and Economy, Tsinghua University, and senior economist Oleg Lugovo from the Environmental Defense Fund moderated the first part, and associate research fellow HE Jianwu of the Department Research Center of the State Council and associate professor ZHANG Junjie of Environmental Economics in the School of Global Policy and Strategy at the University of California, San Diego delivered keynote speeches. Deputy director of the Energy Research Institute ZHOU Dadi moderated the second part. Later, guests gave discussions on the current state of the modeling capacity of the teams and ongoing developments, the assignments and commitments of modeling teams and plan of the meetings and trainings.

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■ Competitions ● Undergraduate Field Investigation Contest Since 2009, CIDEG has held the annual “Undergraduate Field Investigation Contest” in an effort to encourage students to actively participate in field research. The theme for the seventh contest in 2015 is “My View on Youth Entrepreneurship”. Along with the new wave of mass entrepreneurship and grass roots entrepreneurship, the contest focuses on the youth entrepreneurship in the context of “mass innovation by everyone”, expecting to find the problems and probe into the institutional guarantee and policy support system for youth entrepreneurship through the participation of undergraduates. After two rounds of competitions, the team led by LIANG Weicong from Peking University,with a research report on “The Role and Effect of Entrepreneur Café – Case of Zhongguancun Innovation Street”, won the first prize; YANG Siqin’s team from Tsinghua University and SU Zhou’s team from Zhejiang Gongshang University, respectively delivered reports on “Policy Research on Youth Entrepreneurship Environment in Middle and Small Companies under Hunan-Taiwan Cooperation – Case of Taiwan Farmers Pioneer Park in Yueyang” and “Research on the Government and Internet Business Mechanism for Youth Entrepreneurship – Case of Dream-town in Hangzhou and Qingyanliu village in Yiwu”, were both honored with the second prize. CIDEG Vice-director CHEN Ling moderated the contest, and CIDEG Director Prof. XUE Lan presented the awards to the winners.

● Climate Negotiation Stimulation —— Contest in Tsinghua On Apr. 23rd, 2015, the “Climate Negotiation Stimulation – Tryout in Tsinghua”, organized by CIDEG, was held in Tsinghua University. Upon the selection of submitted documents relating to the personal and team stance that will be taking and the attendance, 49 students from almost 20 departments and schools entered the finals. They formed nine contracting parties (China, the U.S., EU, India, the African Group, the Least Developed Countries, Alliance of Small Island States, oil producing countries and ecology circle), to compete intensively through speech, debate and negotiation stimulation, ten students were finally awarded to attend the International Climate Negotiation Stimulation in Paris at the end of May on behalf of Tsinghua University. Tsinghua is the only participating university from China.

3 5 Publications

CIDEG Translation Series Chief Editors: AOKI Masahiko and WU Jinglian, published by China CITIC Press.

Learning to Industrialize: From Given Growth to Policy-aided Value Creation Author: Kenichi Ohno Published in March 2015 This book proposes a new, pragmatic way of approaching economic development which features policy learning based on a comparison of international best policy practices. While the important role of government in promoting private sector development is being recognized, policy discussion often remains general without details as to what exactly to do and how to avoid common pitfalls. This book fills the gap by showing concrete policy contents, procedures, and organizations adopted in high-performing East Asian economies.

East Asian Development: Foundations and Strategies Author: Dwight H. Perkins Published in August 2015 In the early 1960s, fewer than five percent of Japanese owned automobiles, China's per capita income was among the lowest in Asia, and living standards in South Korea's rural areas were on par with some of the world's poorest countries. Today, these are three of the most powerful economies on earth. Dwight Perkins grapples with both the contemporary and historical causes and consequences of the turnaround, drawing on firsthand experience in the region to explain how Asian countries sustained such rapid economic growth in the second half of the twentieth century. East Asian Development offers a comprehensive view of the region, from Japan and the "Asian Tigers" (Hong Kong, Singapore, Taiwan, South Korea) to Indonesia, Vietnam, Thailand, Malaysia, and China--a behemoth larger than all the other economies combined.

Keys to the City: How Economics, Institutions, Social Interactions and Politics Shape Development Author: Michael Storper Forthcoming in March 2016 Why do some cities grow economically while others decline? Why do some show sustained economic performance while others cycle up and down? In Keys to the City, Michael Storper, one of the world's leading economic geographers, looks at why we should consider economic development issues within a regional context--at the level of the city-region--and why urban economies develop unequally. Storper identifies four contexts that shape urban economic development: economic, institutional, innovational, interactional, and political. The book explores how these contexts operate and how they interact, leading to developmental success in some regions and failure in others. Demonstrating that the global economy is increasingly driven by its major cities, the keys to the city are the keys to global development. In his conclusion, Storper specifies eight rules of economic development targeted at policymakers.

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The Invention of Enterprise: Entrepreneurship from Ancient Mesopotamia to Modern Times Author: David S. Landes, Joel Mokyr, William J. Baumol Forthcoming in March 2016 Whether hailed as heroes or cast as threats to social order, entrepreneurs--and their innovations--have had an enormous influence on the growth and prosperity of nations. The Invention of Enterprise gathers together, for the first time, leading economic historians to explore the entrepreneur's role in society from antiquity to the present. Addressing social and institutional influences from a historical context, each chapter examines entrepreneurship during a particular period and in an important geographic location. The book lays out a definitive picture for all who seek an understanding of innovation's central place in our world as the experience and guidance for current innovations.

Previous Published Works ■ CIDEG Research Series

Strategic Study on China’s Environmental Policy Practice in Automotive Energy Urbanization: Japan’s Lessons and Experience Author: FENG Fei Published in November 2014 Author: MENG Jianjun Published in April 2014

The Reform of China’s Land System: Chinese County Government Finance: Difficulties, Breakthroughs and Reforms and Effects 1994-2006 Policy Mix Authors: HOU Yilin, WANG Youqiang Authors: WANG Hui, TAO Ran Published in December 2011 Published in October 2013

Rent Seeking and Chinese Industrial The Development of Producer Services Development and the Upgrading of the Manufacturing Industry in China Authors: WU Yongping et. al. Published in December 2010 Authors: LI Shantong, GAO Chuansheng Published in November 2008

China’s Environmental Regulation Mechanism Authors: QI Ye et. al. Published in November 2008

3 7 ■ CIDEG Translation Series

The Venturesome Economy: How Capitalizing on Change: A Social Innovation Sustains Prosperity in a History of American Business More Connected World Authors: Stanley Buder Author: Amar Bhidé Published in October 2013 Published in August 2014

Silence and Outbreak: The Minamata The Minamata Disease Not Over Yet Disease Event (1873-1995) Author: Masazumi Harada Author: GOTOU TAKANORI Published in July 2013 Published in October 2013 (CONFIDENTIAL)

The Minamata Disease: Pollution Government and the American and The Struggle for Democracy in Economy Postwar Japan Authors: Price Fishback, Robert Higgs, Author: Timothy S. George Gary D. Libecap et al Published in June 2013 Published in May 2013

Making Technology Work: Awakening Giants, Feet of Clay Applications in Energy and the Environment Author: Pranab Bardhan Published in August 2012 Authors: John M. Deutch, Richard K. Lester Published in November 2012

Indigenous Innovation and Industrial Building Engines for Growth and Upgrading Competitiveness in China Authors: CHEN Qingtai Author: Douglas Zeng Zhihua Published in June 2011 Published in December 2010

Plug-in Electric Vehicles Freedom From Oil Author: David Sandalow Author: David Sandalow Published in December 2010 Published in June 2010

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Dynamic Governance, Embedding Syougen Sengo Nihon Keizai Culture, Capabilities, and Change in Singapore Author: Isamu Miyazaki Published in July 2009 Authors: Neo Boon Siong, Zeng Yufeng Published in December 2009

The Big Necessity Promoting Enterprise-led Innovation in China Author: Rose George Published in July 2009 Authors: ZHANG Chunlin, Douglas Zhihua Zeng, William Peter Mako, James Seward Published in April 2009

Unleashing India's Innovation Stability with Growth Author: Mark Dutz Authors: J. E. Stiglitz et al. Published in January 2009 Published in September 2008

The Economics of Medical Reforms Housing Policy in the United States Author: Byung-Kwang Yoo Author: Alex F. Schwartz Published in June 2008 Published in April 2008

Green Cities: Urban Growth and the In Spite of the Gods: The Strange Environment Rise of Modern India Author: Matthew E. Kahn Author: Edward Luce Published in January 2008 Published in November 2007

Competition in Competence Building: Reminiscences of an Environment Why is the Japanese Automobile Chief Industry so Powerful? Author: Seiko Dolph Author: Takahiro FUJIMOTO Published in January 2007 Published in June 2007

3 9 Nature and the Marketplace: The Path Traveled by Japan as a Capturing the Value of Ecosystem Developing Country: Economic Services Growth from Edo to Heisei Author: Geoffrey Heal Author: Kenichi OHNO Published in July 2006 Published in May 2006

■ Book Series on "Service Outsourcing and Development of the Chinese Services Industry"

Financial Services Outsourcing: Services Globalization and Services International Trends and the Choices Outsourcing: Status Quo, Trends, for China and Theoretical Analysis Authors: YANG Lin, WANG Jiajia Authors: JIANG Xiaojuan et al. Published in November 2008 Published in November 2008

Software Outsourcing: Technology The Design of China: Service Overflow and Ability Upgrading Outsourcing and Competitiveness Author: LIU Shaojian Author: WANG Xiaohong Published in November 2008 Published in November 2008

■ Translations of Service Economic Chief Editor: JIANG Xiaojuan Published by Renmin Press, Truth & Wisdom Press

Globalization of Services: Some Output Measurements in the Implications for Theory and Practice Service Sector Authors: Yair Aharoni, Lialach Nachum Author: Zvi Griliches Published in April 2013 Published in February 2013

Tourism and Entertainment Industries A Handbook of International Trade -Shaping the Future in Services Authors: Zvi Griliches, Christine Mathies Authors: Aaditya Mattoo, Robert Published in December 2012 M.Stern, Gianni Zanini Published in December 2012

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The Business of Sports Vol.2 Outsourcing and Offshoring in the 21st Century: A Socio-Economic Authors: Brad R. Humphreys, Dennis R. Perspective Howard Authors: Harbhajan Kehal , Varinder P. Published in November 2012 Singh Published in September 2012

Productivity, Innovation and Knowledge The Business of Sports Vol.1 in the Service Sector: New Economic and Socio-Economic Approaches Authors: Brad R. Humphreys, Dennis Authors: Jean Gadrey, Fa.z Gallouj R. Howard Published in September 2012 Published in June 2012

Growth in the Service Sector: The Your Money or Your Life: A Strong Paradox of Surging Costs and Medicine for America's Healthcare Persistent Demand System Authors: Thijs ten Raa, Ronald Schettkat Authors: David M. Cutler Published in June 2012 Published in January 2012

Productivity: Information Technology Services in Economic Thought: and the American Growth Resurgence Three Centuries of Debate Authors: Dale W. Jorgenson, Mun S. Ho, Authors: Jean-Claude Delaunay, J. Kevin J. Stiroh Gadrey Published in January 2012 Published in December 2011

The Service Sector: Productivity The Economics of Education and and Growth Training Authors: Ernesto Felli, Furio C. Rosati, Authors: Christian Dustman, Bernd Giovanni Tria Fitzenberger, Stephen Machin Published in December 2011 Published in December 2011

4 1 ■ Other CIDEG Publications

China to Fight Global Climate Change My : Trans-Boundary Game in Life Authors: Hu An-Gang, Guan Qingyou Author: AOKI Masahiko Published in November 2009 Published in October 2009

By Force of Thought From Authority to Democracy: The Author: Janos Kornai Political Economics of Sustainable Growth Published in April, 2009 Editors: AOKI Masahiko, WU Jinglian Published by China CITIC Press

Offshore Development, Staffing Informationalization and Rural Service, and Vocational Education in Development: Empirical Research China’s Software Industry on the Tianfu Information Network of Sichuan Unicom Author: Tajima Toshio, Furuya Shinsuke Authors: YU Qiao, TONG Xiaoyu Published by Institute of Social Science, Published by People’s Post & University of Tokyo Telecommunications Publishing House

Establishing a Health-for-All Society Author and Editor: LIU Yuanli, LI Weidong Published by Chinese Peking Union Medical College Press

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Social Impacts

■ International Exchanges ■

CIDEG actively carried out several partnerships with foreign research institutions of international cooperation and exchanges, in order to build a communication platform for public policy research and develop an international reputation. The international cooperation and exchanges of 2015 were:

● On May 12th, 2015, the 3rd “One Step Ahead” Seminar Series on “China's Human Resource Reserves: Narrowing Skills Gap in Economic Transition Period” was jointly held by JPMorgan Chase, The Asia Society Hong Kong Center (ASHK), and Center for China and Globalization (CCG). On the conference, leaders in the political, business and academic circles launched a heated discussion. They agreed that training and improving talent skills plays an important role for the long-term development of China’s economy, especially it should focus on secondary vocational and technical education. China should accelerate the economic transformation from investment-led to consumer-led. CIDEG Board Member Mr. LU Mai was invited to attend the conference, and expressed his opinions on the labor market transition and future human resources development directions.

● On Aug. 16th, 2015, the 10th China Returned Scholars Innovation and Entrepreneurship Forum was held in Beijing. It was hosted by Western Returned Scholars Association (WRSA) Chinese Overseas-returned Scholars Association (COSA), and organized by Center for China and Globalization (CCG). This forum with the theme of “Mass entrepreneurship and innovation”, fully explored the new trend, new experiences and new achievements of returned scholars, for their innovation, entrepreneurship and expand development opportunity. CIDEG Director Prof. XUE Lan was invited to the forum and pointed that the “Mass entrepreneurship and innovation” in China has not yet reached its real peak. Under the social governance system, there are lots of space for innovation and entrepreneurship. The returnee talents will have a brilliant future.

4 3 ● On Dec. 16th 2015, the 2nd World Internet Conference was held in Wuzhen of Zhejiang province with the theme of “An Interconnected World Shared and Governed by All—Building a Cyberspace Community of Shared Destiny”. The conference was held over 3 days, more than 2000 representatives from about 120 countries, regions and 20 international organizations participated in the conference. The conference facilitated strategic-level discussions on global Internet construction, development and governance. President XI Jinping attended the opening ceremony of the conference and delivered a keynote speech. Prof. XUE Lan, CIDEG Director, was invited to the meeting, and expressed his opinion that the five-point proposal revealed cyberspace’s large potential to release human creativity and to improve people's well-being. It also showed the firm determination of China in constructing cyber world infrastructure, promoting cultural communication, improving network economy development, and establishing an Internet governance system to promote equity and justice, together with the international society.

■ Policy Impacts ■

CIDEG has gathered a large number of China's top policy researchers, scholars and officials, and has significant policy influence in their related fields, playing a key role in the Chinese policy-making process. Some activities are listed below:

● On Mar. 2015, the National Development and Reform Commission (NDRC) has released the expert committee name list for the 13th Five-Year Plan. A number of board members and academic committee members of CIDEG were employed by the expert committee. It is including Prof. BAI Chong-en, Mansfield Freeman Chair Professor, Associate Dean, and Chairman of the Economics Department in the School of Economics and Management of Tsinghua University, Member of the Academic Committee of CIDEG; Prof. HU An-gang, Professor of the School of Public Policy and Management of Tsinghua University, and CIDEG Academic Committee Member; Prof. QIAN Yi, Professor of the School of Environment of Tsinghua University, Member of Chinese Academy of Engineering, CIDEG Academic Committee Member; Prof. QIAN Yingyi, Dean of the School of Economics and Management of Tsinghua University, and Board Member and Academic Committee Member of CIDEG; Prof. XUE Lan, Dean of the School of Public Policy and Management of Tsinghua University, CIDEG Director; Mr. ZHOU Dadi, Associate director of the Advisory Committee of National Energy Committee, CIDEG Academic Committee Member. The expert committee of the National Development and Reform Commission will put forwards suggestions and advices for the 13th Five-Year Plan, innovation and institutional construction.

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● On Mar. 3rd -15th, 2015, the second session of China's 12th National People's Congress (NPC) and the second session of China's 12th Chinese People's Political Consultative Conference (CPPCC) were held in Beijing. On the meeting, Prof. WANG Ming, CIDEG Academic Committee Member addressed the extreme talent shortage in the philanthropy field, and it is especially shorts of top management talents. Therefore, there is a need of vigorously promoting the personnel training in the philanthropy field.

● On Mar. 21st -23rd 2015, the “China Development Forum 2015” was held in Beijing, which was hosted by the State Development Research Center. Prof. XUE Lan, CIDEG Director, expressed his opinion in the interview by China Economic Net. He pointed that in facing the economic globalization, China’s competitive advantage has to be transformed from the traditional cheap labor advantage to strengthen the quality control system and improve the innovation ability. Prof. Lawrence Lau, CIDEG Board Member attended the forum and expressed that interest rate and exchange rate has large volatility, and this has affected the international trade and long-term investment. He also said that RMB capital account will eventually be convertible, if there are regulations hinder short-term capital flows and support long-term capital flows, this will be achieved faster. Mr. QIU Baoxing, CIDEG board member expressed on the forum that in the process of innovation driven urbanization, city and country should complement each other, so both of them will be highly dynamic, attracts population, and future population will flow freely and elastically between city and country. Prof. QIAN Yingyi, CIDEG academic committee member, attended the meeting and expressed that the contract spirit is an important foundation of the rule of law. The core of the contract spirit has three aspects, the equality of the contract, all parties comply with the contract, and there should be a fair mechanism when dispute arises, that is, the independent jurisdiction. Prof. BAI Chong-en attended the forum and expressed that to achieve the sustainable development goal, it should find a good incentive target.

● On Apr. 1st, 2015, the “2015 Foreign Expert Consultative Work Conference” was held by the State Administration of Foreign Experts Affairs. Mr. TOKUCHI Tatsuhito, CIDEG Board Member, the counselor of State Administration of Foreign Experts Affairs of China (SAFEA) was invited to attend the conference. More than 30 representatives attended the meeting, which includes department heads and subordinate unit principals from Development Research Center of the State Council, Bureau for International Cooperation, State Administration of Foreign Experts Affairs, and also department heads from intelligence introduction department of Tianjin, Shandong, Anhui, Ningxia and Zhejiang.

4 5 ● On Dec. 7th, 2015, the Premier LI Keqiang, also the member of the Standing Committee of the Political Bureau of the CPC Central Committee, has visited the National Development and Reform Commission, and presided over the meeting “The 13th Five-Year Plan preparation work expert forum at home and abroad”. CIDEG Director Prof. XUE Lan was invited to attend the meeting, together with experts at home and abroad, gave advice and suggestions to the five-year planning, making the planning to be suitable for China’s national conditions and real situations, at the same time drawing on the international experiences, trying to leap over the “Middle Income Trap”.

● Mr. WU Jinglian, joint chairperson of CIDEG Academic Committee is calling for reform actively in recent years, putting forward a range of plans for an overall and deepening reform and a series of preparations to start it. On Mar. 21st– 23rd, Mr. Wu has made a speech of“Removing Institutional Barriers through Reform” at the “China Development Forum 2015”. On May 17th, Mr. Wu was invited to attend The 4th China Int'l Agri-Business Forum 2015, and he discussed with other guests about several problems need to be researched regarding the rural reform. On Dec. 15th, Mr. Wu was invited to attend Sanya Forum held in Hainan Province and delivered a speech on “the challenges faced by China during the global economic transition”. The series speeches of Mr. Wu have attracted wide attention of the academia.

Website

CIDEG’s new website (http://cideg.cemf.net.cn) consists of sections on CIDEG Perspectives, Recent Developments, Research Projects, Academic Activities, and Research Publications. To promote the spread of knowledge and academic exchanges, CIDEG Website presents timely reports on CIDEG’s academic activities and research projects and publishes the full texts of CIDEG’s research reports and presentations at academic salons. The English Website is being constructed to meet the needs of netizens abroad.

WeChat Official Account

CIDEG opens its WeChat official account (Tsinghua_CIDEG) which aims to transmit free but rigorous scholarship. Trough WeChat, CIDEG publishes its updated research findings, seminar announcements and academic activities’ record, so as to share the leading research and ideas of China’s policy reform, industrial development and environmental governance.

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