Conventional wisdom says China's economic boom is a "miracle". The FEER has an article by a private equity partner taking aim at that idea, discussing a little noticed part of China's economic boom: the huge amount of investment it takes for China to support its growth. I'll repeat the conclusion but for anyone interested in what is really going on in China's economy (including a nice con as an introduction) it is well worth a read:

China has embarked on major banking reforms and meaningful progress has been made. But the economy’s growth continues to be driven by excessive liquidity, and so is costly and inefficient. Improving profitability, returns and efficiency remains the highest priority. While China is on the right track in her search for a cure, the last thing she needs is someone in a doctor’s white gown to come along to tell her she is in excellent health. Fortunately, the leadership knows better. The policy of the central bank to raise interest rates, mop up excess liquidity, curtail lending to overheated industries and generally increase the cost of capital is correct and necessary for sustained growth in the long term.