First notebook entry: the future development of China Chinese economy has rocketed from 1979 to 2010 with a staggering 8% rise in GDP annually, whereas whether this upward trend can be sustained is predominated by technological innovation and state-owned enterprises reform. Specifically, China can take advantage of the gap between developed nations and developing countries in terms of technology, imitating or introducing the advanced technology to accelerate the innovation as well as cut down the cost. In addition, the core of state-owned enterprises reform is to eliminate the policy burdens in order to solve the soft budget constraint, improve finance system and restrain social corruption. Notwithstanding an array of structure-conflicts, it is not unrealistic for China to demonstrate a rapid and sustainable economic increase in the next 20 years. Along with the revival of China, Chinese traditional culture will be in the limelight again and Chinese merchants can grasp more opportunities to improve themselves than foreigners, owing to the same cultural background.