Beijing central command predicts an 8 per cent growth rate in 2011, as rate hikes and regulations reign in surging inflation.
But local governments have set higher growth targets, according to a must-read analysis in Caixin. 10 provinces have plans to double their economic output by 2015, which is equivalent to 15 per cent yearly growth.
Guizhou Governor Zhao Kezhi told Caixin the provinces are competing to achieve the highest rate: “We have no escape route. We can only fight to the death.”
If you’re not worried yet, check out the outlook and slogan of Ningxia:
Ningxia Autonomous Region hopes to increase fixed asset investment more than 25 per cent in 2011, following 30.9 per cent growth in 2010. Its latest government development slogan is, “Investment is the No. 1 pulling power. Projects are the cornerstone of development.”
China bears like Jim Chanos have warned that China’s growth is already dependent on fixed asset investment, like real estate. If the trend continues, overheating is inevitable.
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