It is also important to look at the borrowing of local governments, which is related to promoting urbanization. The IMF’s Article IV consultation team has given us suggestions on the need to carefully study inter-governmental fiscal relationship, and to reform the division of responsibility in terms of fiscal revenue and 1/3  BIS central bankers' speeches  expenditure among the central and local governments.
On excess capacity and urbanization. In China, we have implemented a program to cut excess capacity in steel and cement industries. One of the reasons behind the excess capacities is that we have had a large infrastructure expansion program. Another reason is rapid urbanization. Large quantity of steel and cement are needed in both programs.