China is set to see economic growth of 10.9% in 2007, according to the State Information Center (SIC), a research arm of the National Development and Reform Commission. The government think tank's projection is slightly higher than the 10.7% GDP growth rate posted in 2006, AFP reported. "The trend is of an economy that is moving from a bias of fast growth to overheating," the SIC said in a report published by state media. It recommended tightening macroeconomic controls in the second half of the year, noting that real interest rates are comparatively low. In addition to raising interest rates, it also advocated further hikes in banks' reserve requirement ratios. Interest rates have already risen twice this year while the reserve requirement ratio has gone up on five occasions as the government has bid to cool inflation as well as curb fixed-asset investment and stock market speculation. Second-quarter economic data is due for release on July 18.