China produces 29% of the world's mobile phones, 58% of its clothes, and 74% of its toys. The McKinsey Quarterly report Checking China's Vital Signs focuses on the country's 9%-a-year economic growth over the past 24 years. McKinsey examines the sources of this remarkable growth, explores its effect on consumers and businesses, and addresses four challenges confronting China.Misallocated capitalWeak banksNeeded economic liberalizationEconomic disparity between rural and urban dwellersFor anyone interested in doing business in China or with Chinese companies this is a must read. McKinsey has devoted a whole issue to China. The Vital Signs report can be read for free, but other topics in the special issue are available only to paid subscribers.