Globalist says:

China's growth model has created a number of interrelated imbalances that
will soon retard growth or undermine it. These include:

* The investment- and credit-centric nature of growth

* The still strong role played by state-owned enterprises

* A weak services sector

* Financial repression (read: artificially low interest rates) that punishes
households

* High-income inequality and

* Suppressed factor prices (that is, of land, capital, money and energy)

Without radical reforms, China could only sustain an 8% growth rate at the
risk of exacerbating these imbalances, resulting in probably severe economic and
social disruption.

Read more: http://www.theglobalist.com/storyid.aspx?storyid=9981