Welfare, Environment and Changing US-Chinese Relations: 21st Century Challenges in China, edited by Maria Weber. Cheltenham: Edward Elgar, 2004. xxxii + 181 pp. £55.00/US$90.00 (hardcover). This book explores major domestic social-economic issues as well as external challenges confronted by China. It is divided into two parts: the first includes such outstanding challenges for China as the likelihood of high growth in the coming decade, control of environmental damage during periods of high growth, increasing inter-regional and urban-rural disparities in the reform era, and conflict and cooperation in US-China relations. The second part focuses on issues related to the welfare system, including the size of urban unemployment in the wake of the reform of state-owned enterprises (SOEs), the aging population and the pension system, building an inclusive health care system, and liberalization of insurance services after China's accession to the WTO. Some of the main arguments by individual contributors are quite sensible. For example, Andrea Boltho argues that, given the rise of the US between 1870 and 1913 and the rapid growth of East Asian economies in the post-WWII era, it is possible that China may continue its high growth until 2020 and become the world's largest economy in purchasing power parity (PPP) terms. Giacomo Boati suggests that the statistics on registered urban unemployment in China severely underestimate the real unemployment in China's cities. Given the limited space of this review, I will limit my attention to selected chapters dealing with three key issues - environment, welfare and US-China relations. In Chapter 2, Nicoletta Marigo explores environmental protection and economic growth in China, providing a good overview of the major aspects of environmental degradation in China. She identifies the main causes of these environmental problems and some mechanisms of improvement, including ownership structure, urbanization and heavy consumption of coal for energy. She advances a reasonable argument that China could improve its environment at the current level of income, but the process could be complex and challenging; development of appropriate technology is critical for the success of a cleaner development strategy and active measures are needed to foster the adoption of the right technology options and to support clean development in key sectors. Nevertheless, the chapter relies too heavily on secondhand data and insufficiently utilizes primary data from the Chinese sources, and Marigo's discussion of the economic or opportunity costs for a cleaner path of development is inadequate. In Chapter 7, Maria Weber and Anna Stenbeck offer a useful overview of the evolution of the Chinese public health system in the reform era. This chapter offers a snapshot of the progress of and challenges for China's public health in the past two to three decades. Basically, as the Maoist public provision of preventive and primary health care has given way to an increasingly marketized health care system, patients have had to rely primarily on out-of-pocket payment, instead of social payment and insurance, to cover their health expenses. Weber and Stenbeck also identify major problems in health care in today's China, including soaring medical expenses, growing inequality in health services and over-prescription of drugs and services. …