The visual benefits of a great year of growth may be seriously offset by unseen financial risks beneath the surface. China's debt rate is now approaching the international warning line.

Growth this year was predicted at 8 per cent. It is now 9 per cent. Official projections for next year are 8 to 8.5 per cent GDP growth. It's interesting a half percentage leeway has been set. This has never occurred before which indicates lack of central confidence that macroeconomic control measures can contain hyper-growth in the coming year. In looking towards China's economy next year, Premier Wen Jiabao identified four factors. They are: maintain continuous rapid economic development to avoid fluctuations; strengthen macroeconomic controls to contain inflation; closely monitor international finance and oil price shocks to secure national economic stability; and address the people's interests for a harmonious society.

He has identified where the problems lie, shifting from the former administration's focus on economic growth to balanced growth with a social conscience. The execution of Mr Wen's programme falls on the National Development and Reform Commission chairman Ma Kai , who added his four points to implement Mr Wen's agenda. Mr Ma's four points are: adhere to improving macroeconomic controls to abolish unhealthy economic elements to maintain stable development; use reform to solve problems that are obstacles to economic and social structural development; adjust structures to change the methods of economic development to overcome one-sided growth; and to emphasise humanity to improve people's living standards.

Hyper-growth driven by real estate and fixed-asset spending benefits only a few. These people attend conferences in five-star hotels in Beijing and Shanghai. The beneficiaries, who park BMWs and Mercedes-Benzes outside, make speeches about the potential of Chinese brands inside.

Meanwhile a pattern of social ugliness has been seen in several rural cities, which points to an imbalance or distortion in growth, where many have not benefited from the surging economy. Danger is apparent in a possible economic dislocation just around the corner. Any major international event could stimulate this meltdown.

Concerns have prompted the reform commission to launch a programme next year to bring some of the distortion back into focus and involves four segments. Firstly, 50 billion yuan in treasury bonds are to be issued each year over the next five years to be used in western China for rural infrastructure and restoration of a damaged ecological environment.

Secondly, another 50 billion yuan in rural development funds for the central and western regions will focus on infrastructure such as water conservancy projects and provide a nine-year free compulsory education programme. It also involves rural public medical and health services and poverty relief by providing minimum cost-of-living funds.

Thirdly, a separate treasury-bond issue to expand the social security system is under development. Fourthly, funds will be dedicated towards a special medical and health services emergency programme.

These long-awaited initiatives deserve applause. They underscore a new administration which now places social welfare and environmental concerns on par with the success of capital accumulation and growth. But the question is - highlighted by the difficulty in implementing macroeconomic controls to curb hyper-growth - can they make these policies stick? But with so much local corruption, will the state-allocated funds reach those who need them the most? That is the critical question.

Laurence Brahm is a political economist and lawyer based in Beijing.