Reflections on Chinas Economy

According to the Federal Reserve Bank of San Francisco, a recent topic of concern is how China can keep its economy from overheating, a concern that began to emerge toward the end of 2003, when
GDP grew at a rate of around 10%. In China, concerns about excess demand are centered in sectors such as real estate, cement, and steel, where investment has been so strong that government officials and many outside observers are concerned about the development of overcapacity, leading to a boom-bust cycle.