汉译英译文如下：

Looking for a General Equilibrium of the Internal and External Economy
－By the Director-general of the Institute of National Economy, China Reform Research
Foundation at 2007 the Fourth Fortune China Forum

Good morning, ladies and gentlemen! Today I would like to touch uponthe topics of new financial era and financial liberalization. It should beadmitted that starting from last year, China has ushered in a new stage ofdevelopment of the financial market: the stock market has gained a sound basisfor development after several years’ reform, and major banks have fastenedtheir renovation. We are, therefore, coming to a new stage of economicdevelopment.

Having said that, I also want to express a view that theliberalization and opening of financial industry is a long-term and riskyprocess. And we should base our consideration of financial liberalization onour awareness of the risks. This year is the 10th anniversary of theinternational financial crisis; we have received many invitations, asking us toreview the lessons of the Asian Financial Crisis. This reminds us of thequestion whether the existing financial system is solid enough to cope withinternational risks.

Another issue we need to consider is: what’ s the impact of RMBappreciation on domestic economy? First of all, the competitiveness of exportedproducts will be reduced. And who will be worse affected? The privateenterprises; they will suffer loss and even bankruptcy. Consequently, the migrantworkers will also be involved, as they see their salary and living standardremain at the same levels after RMB appreciation.

Therefore, RMB appreciation may be conducive to the externalbalance, but not to the internal one. This will widen China’s wealth gap andslow down the increase of employment. So we need to figure out some othersolutions beneficial for both external and internal balance.

If we look at the reason, domestically and internationally, for thehigh competitiveness of China-made products, the inexpensive labor cost is theanswer. But I believe the enhancement of the competitiveness of China-madeproducts is also due to many other factors, including our technological advance.

So from this perspective, if we can increase investment on thewelfare of workers, we can achieve relative balance between the internal andexternal economy. What can the government supply? The answer is: to reform thesocial security system, which will help solve the problems of low livingstandard of the migrant workers and wealth gap between the urban and ruralareas.