The Chinese Economic Miracle

Despite all attempts by the Chinese government to curb growth, China's economy continues to grow at an astonishing level. China's planning agency reported Tuesday that gross domestic product increased by 9.4 % in the first nine months of the year, and is forecast to grow by 9.2 % for the rest of the year. Although fourth quarter growth will probably be larger because the planning agency has a history of understating its predictions for the economy.

In the first half of the year China's economy has already grown by 9.5%, and if it continues this will be the third year in a row that it is growing at above a 9% rate. This is three times the growth rate of US and six times that of Europe.

The Chinese have been working hard at curbing growth, not because they are trying to ensure they don't destroy other economies (which they hope will happen over time), but for more internal reasons. Its biggest motive is that this economic boom is overtaxing Chinas already over-extended energy base. Plus China worries that if it grows too quickly it will end in a major crash.

To slow its economic growth China has raised interest rate, cut investment both from domestic sources and foreign ones, and has tried to prevent growth in certain industries by creating laws that restrict expansion. None of this has worked.

Now all that the rest of the world can do is watch the rise of maybe the next great economic and soon to be military power. Regretfully they are also a dictatorial and repressive regime with plans for world domination.