On the second day of the conference, Freeman Chair Professor BAI Chong-en, Associate Dean of Tsinghua SEM reflected on the topic “Understanding the Declining Share of Household Income in China”. He observed that the declining share of household income stemmed from China’s economic restructuring, particularly from the relative expansion of capital-intensive industries in China. Later on, China Construction Bank Chair Professor WEN Yi of SEM explained China’s trade imbalance puzzle. His research identifies a possible positive correlation between savings rate and economic growth in a country with high growth and credit crunch. Thus, China’s trade surplus is not necessarily caused by the undervalued Renminbi. Professor JU Jiandong from Tsinghua SEM then talked about “Trade Liberalizations and Global Current Account Imbalances”. He observed that, when trade liberalization stagnates, the demand for capital shrinks accordingly. Under this circumstance, China’s restructuring of labor-intensive industries causes capital outflow and then leads to current-account imbalances.