Officials in Inner Mongolia were cautioned by the State Council for building an unauthorized power plant, state media reported. The reprimand, together with the suggestion that other local governments "learn a lesson from the incident", suggests that Beijing is ready to get tough in its bid to bring the overheating economy under control. Ten officials were disciplined; self criticisms, demotions and warnings were mentioned in the media; and two building contractors face legal action for their part in the construction of the US$350 million Xinfeng Power Plant. The World Bank announced earlier in the week that it expects China's economy to expand 10.4% this year and 9.3% next year. This came after growth of 11.3% was recorded for the second quarter of 2006, the highest quarterly rate in 12 years.
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