China may be growing too fast

China is probably the only country in the world that dislikes signs of excess economic growth. The country's economy is overheated, with the private sector growing at astonishing rates, leaving languishing state-owned and collective enterprises behind. As many as 2/3 of public companies in China are losing money--and more are slipping into the red each year. Without state subsidies, these firms would have already collapsed, leading to widespread unemployment and possible social unrest. The country's banks are laden with bad debt; as loans on highly speculative industries begin to default, it could lead to a massive downturn for the world's most populous nation. The country's "socialist" leaders are working overtime to cool down the economy to avoid catastrophy. Whether they succeed or not is a matter of tremendous import for the global economy.