Reporter: China has delivered several decades of double-digit growth and recently 1 Japan to become the world's second largest economy. Can China sustain this performance? How is it possible to sustain this high level of 2 year after year?How reliable is the data in any case? Jack: The transition from an agricultural to an industrial economy, particularly on the scale we are seeingin China, leads to enormous 3 gains. Growth in the past has been driven by investment from other countries and China has typically been the largest 4 for FDI. the government has also been an enormous investor into 5 and these projects then pave the way for future increases in productivity. Going forward, the shift will be for China to develop as a consuming nation. Is this sustainable? Yes. There is a great deal of 6 behind this trend . That doesn't mean, however, that there will not be bumps in the road. Generally, with some reservations, you can trust the numbers coming out of China, and in many cases, there is corroborating evidence to support them. Reporter: When discussing China it is a mistake to speak about it in a uniform voice. Can you talk about the differences between the North and South? The Coast and Inland regions? Jack: China has had tremendous growth, but it has been 7 . The biggest growth has been along the coast and in major cities such as Guangdong, Shanghai and Beijing. They have had the fastest growth, and there has been growth 8 , but it has not been as dramatic. Between North and South, people will say the South is more business-oriented and easier, and those generalizations are useful, though not 100% 9 . There are differences in the cost structures between different areas which can be very 10 . Companies like Foxconn, which makes ipads, are moving their factories from the south into the inner provinces.