Despite the rise of inflation in China, their overall development is full steam ahead. The overall picture is described in an article in the January 27th, 2011 issue of Beijing Review titled “Back on Solid Ground”. You might find this highly informative.
My own estimate, since Hu Jintao’s assumption of leadership, is that they do not exaggerate either their successes or their problems.
A major problem is to harness inflation, which essentially is a relationship between the income of laborers and the rise in prices; while they have increased a minimum wage, it does balance the increased costs of imports, which is a much more difficult condition to rebalance. I will probably have more to share with you from the study of how China can deal with inflation in ways not possible under capitalism’s primacy of privatization.