Traditionally, there was a perception that households in China do all the savings. Household saving is significant in China, but it is not driving the national savings.

We believe China's trade surplus will gradually drop, but it will take time before it drops dramatically.

Even with the better numbers, the 20% reduction in only five years is still an ambitions target.

China has been adjusting energy prices for a long time, and indications are that helped improve the energy intensity. There is still a lot of scope for raising energy prices.

To meet the 20% reduction in only five years could require pretty tough policies that might hurt growth.

It all adds to the general perception that politics are no good and politicians are a bunch of bums,