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Increased exports and a boom in the construction industry helped the rapid expansion during 2007.
But officials warned that overheating remained a danger, despite a slight slow-down in the fourth quarter.
Inflation is also a serious concern, with many Chinese people hit by recent dramatic increases in food prices.
Over the past year the Chinese economy has grown by 11.4%, which is its fastest growth rate reached in the last thirteen years. To control inflation, the government has introduced a range of price controls to help the prices of ordinary goods, particularly food, stay controlled.
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