The rising demand for the Chinese goods all over the world raised economists expectations that China’s GDP growth could be over 10% this year. It seems that China’s has concerns about the increasing inflation and more boosts in the manufacturing sector would expose its economy to the threat of soaring prices.

The increased demand for consumer goods among China’s growing middle class and a potential rising demand for China exports which is boosted by the recovery of the economies in Japan, the US, and the EU.

One of the Wall Street reporters claimed that China’s senior leaders want to mute those expectations. The country’s Premier Wen Jiabao said that they target GDP growth of only 8% this year.

Worries about inflation have been expressed by economists since China’s $585 billion stimulus package showed signs of improving production and a demand for consumer goods. Factory output in China is up sharply and has risen since the middle of last year.

But, the liquidity pumped into the marketplace also cause a surge in bank lending and probably a rise in real estate and equity prices. China has begun to cut access to capital for both individuals and companies, a process that will slow growth.

In other words, capital availability has become so great that the government has lost control of the growth rate of the economy.