China's economic growth continues

China has reported a 10.7% economic growth rate for 2006. Record-breaking growth is not new to the country; China has been growing steadily for over a decade. The economic craze has been fueled by huge exports and massive investments in buildings, roads and cities. My recent visit to China confirmed this investment-construction was everywhere with new buildings going up in all the medium-to-large cities. During my visit to Shanghai, a tour guide reported that over 1/3 of all the world's cranes were currently in the city. It was quite obvious that construction was the city's main priority.
The growth has many government officials and private specialists worried about asset bubbles, excessive bank lending and an overheating economy. Beijing has taken steps to stifle the growth somewhat-raising interest rates and putting pressure on banks to rethink lending practices. While inflation has remained minimal, that could change very quickly and lead to economic havoc.
I do not know much about economics, but I do think it is unrealistic to think the market will not eventually slow and possibly recede. China has a rocky national economic history-many times in the last century its citizens have starved to death as a result of failed political policies and economics. China should practice fiscal reserve and take precautionary matters. I believe the country is so invested in becoming a world power and building its capital that it may be sacrificing the well being of its people. There are still millions in the country side who are starving and without adequate housing. All the world's cranes cannot erase that. And while a percentage may be impressive, the real China that I saw is less optimistic.