China 's rapid economic growth over the past years has been eyecatching, so much so that reports, analyses and predictions are rife about its development momentum, implications and future directions. A most recent example is an article in the UK-based renowned magazine The Economist.

In the "The Dragon and the Eagle", carried in the publication's September issue, its economic editor Pam Woodall made a detailed comparison between growth in China and in the United States. Woodall asserted that if China continues with its reforms, it will enjoy faster growth than America has ever achieved. "Within a decade it will probably be the world's largest exporter and importer, and one day it may overtake America as the world's largest economy."

The world economy has expanded by nearly 5% over the past year, the fastest we have ever seen in two decades. The article lists two factors as major contributors to the growth: one is America's exceptionally loose monetary policy, which has encouraged relentless consumer spending, the other is an unprecedented investment boom in China.

Woodall highlighted China's catching-up efforts, stressing that "only a few years ago, the term 'the world economy' was used as shorthand for the economies of the developed world; China would at best rate a brief mention. But now it is too big to ignore."

China's GDP already accounts for 13% of world output, second only to America's. By the end of this year, the country will probably be the world's third biggest exporter, after America and Germany. It is also the largest recipient of foreign direct investment as multinationals have moved operations to China to take advantage of its cheap labor and huge market. It has now become the new workshop of the world, producing two-thirds of all photocopiers, microwave ovens, DVD players and shoes, over half of all digital cameras and around two-fifths of personal computers.

Besides its producing power, China is at the same time a big new market. Its imports grew by 40% last year, and over the past three years it has accounted for one-third of the total increase in world import volumes.

Woodall is concerned about China's somehow too rapid growth. However, he said China's policymakers have been trying to cool the economy, and there are signs that their measures are working.