China's economic growth picks up pace

China's economy accelerated at the end of 2010, while inflation cooled slightly.

China's gross domestic product, the broadest measure of economic output, grew at an annual rate of 9.8% during the fourth quarter of 2010, up from 9.6% growth in the prior quarter, according to figures from the National Bureau of Statistics released Thursday.

That rate is considered very rapid compared to sluggish growth in Western economies. The U.S. economy grew at a snail's pace of 2.6% in the third quarter.

While China's rapid growth has sparked fears that its economy may overheat, some economists say a rate around 10% is not unusual in the country's recent history.

"China has demonstrated that its economy can grow at a 9-3/4% clip for 30 years with no inflation risk," Carl Weinberg, chief economist for High Frequency Economics said in a research note before the official data came out.

The Chinese government also released its latest inflation data on Thursday, showing that prices rose in December at a slower pace.

Chinese consumer prices rose 4.6% in December, after rising 5.1% the month before, according to government data. Food prices rose 9.6% compared to a year earlier.

Non-food inflation was 2.1%, up from 1.9% the month before.
0:00 /2:09China's path to powerhouse

The latest data comes amid an important meeting between President Obama and Chinese President Hu Jintao at the White House.

In a press conference Wednesday, Obama said it is important to remember that while China's economy is rising rapidly, the U.S. economy is still three times its size, with a mere quarter of the population.

He also tried to calm fears that the U.S. is trying to limit China's growth.

"We welcome China's rise," he said. "We just want to make sure that rise occurs in a way that reinforces international norms and international rules, and enhances security and peace, as opposed to it being a source of conflict either in the region or around the world."

American leaders, including Obama, are pushing for a stronger trading relationship with China, as a way to boost the U.S. economy and create more jobs at home.