China was clearly the rising star of the 20th century and is now in the process of becoming a new superpower of the 21st century. America and Europe - as the present leading players in the global political as well as economic arena - are observing China with a mixture of admiration and fear: With admiration, because China has made the leap from an "international nobody" to a "global player" within a few decades only and with fear, because this development has been accompanied by substantial new tensions in the political, economic, and social sphere which need to be resolved before this promising country can take its rightful place in the global arena for its own welfare as well as for the common good of the international community. What happens in China today is, therefore, not only of great signifi cance for its own growth and development process, but also for redesigning the existing rules of the global political and economic power game between the established centers of gravity and its contemporary challengers. This volume is to contribute to the knowledge of these complex relationships and, moreover, to the understanding of national and inter-regional growth and development opportunities. This objective is served by a total of 24 contributions addressing a broad range of current economic and policy challenges in the People's Republic of China and the European Union. The papers analyze the principles and mechanisms of long?term growth processes in general and discuss policy options ensuring sustainable developments within and between the two economic hemispheres. Contents Part One Growth and Development Patterns in China Xibao Guo 1.1 Why Does China's Economy Grow So Fast? An Analysis Based on Advantages of Late-development Changsheng Xu and Jingjing Wang 1.2 The Current Internal and External Macroeconomic Imbalance and Adjustment in China Pengfei Yan 1.3 The Four Turning Points for the Sustainable Reform and Economic & Social Transformation in China Xinhua Jian and Jiang Yu 1.4 The Present Development of Heavy Industry in China Zhong Ning and Jianhua Ying 1.5 The Trend of Economic Development and the Change of Industrial Structure in the Metropolitan Belt of the Yangtze River Delta Based on Systems Dynamics Part Two Challenges of Growth, Trade, and Cooperation Paul J.J. Welfens 2.1 Growth and Structural Change in Europe and China: New Perspectives Peter von der Lippe 2.2 Measurement and Relevance of the Shadow Economy Yiping Zhu 2.3 Regionalization or Globalization: What Does China's Intra-Industry Trade on Transport Equipments Suggest? Johannes Stephan 2.4 Foreign Direct Investors in Post-Socialist Economies the Role of the Intellectual Property Rights Regime for Investors Xiaoman Xu 2.5 The Bottleneck Problems of Sino-German Economic Development Cooperation and their Solutions