Beijing launches investment crackdown

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.