Economy, China's Economic Growth | featured news

The inflation is still high, and the 10% annual growth rate of the last decade is going to wither to under 5% by 2014 or so, according to the Economist. The innovation necessary to boom a consumer economy is questionable. The state banks have probably been loaded with questionable loans.

China had tried to temper expansion and the price rises that accompany excessively rapid growth.

Would an increase in Chinese domestic demand meaningfully reduce global imbalances and improve U.S. and European employment prospects?

Prime Minister Wen Jiabao said that China could expand social spending and pour money into strategic industries while still meeting its 8 percent economic growth target.