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Online Extra: "China Is a Private-Sector Economy"

Economist Fan Gang points to a 70% share of GDP now in private hands, but he acknowledges that much improvement is still needed

Fan Gang is one of China's best-known economists. He directs the National Economic Research Institute, a Beijing think tank affiliated with the China Reform Foundation. He's an adviser to the Chinese government and has been a consultant to the World Bank, U.N. Development Program, and other international agencies.

Fan has published eight books and more than 100 academic papers. He has been an advocate of tight monetary policy coupled with expansionist macroeconomic policy to compensate for still-inadequate private investment in areas like infrastructure. He recently discussed his views on China's economic future with BusinessWeek Senior Writer Pete Engardio. Edited excerpts of their conversation follow: