Other explanatory factors, such as the different tax treatment of corporate and Treasury bonds, appear to explain only part of the puzzle. A third puzzle concerns the behavior of financial market volatility.
Will China be able to innovate new sources of growth to keep moving up the value chain to escape the middle income trap? (iv)  Fourth, a political economy question is whether China can rise to dominance even as it continues under an authoritarian regime? The Chinese success so far has, of course, given near legitimacy to China’s authoritarian model.