U.S. and European economies slow down China

Finally, the U.S. and Europe dragged China's economic slowdown. Debt crisis is protracted, of course, weakens the purchasing power in the U.S. and Europe. In fact, the goal of China's exports actually there.Although there are concerns in terms of exports, it seems that the Chinese economy will still be supported by domestic demand.
Note AP and AFP on Tuesday (10/18/2011), showed three-to late September, the Bamboo Curtain country recorded a 9.1 percent economic growth. This figure is, in truth down from the position of the previous quarter, 9.5 percent. Currently China is the world's second largest economy.
Meanwhile, China Statistics Bureau said that the national economy actually grow and continue forward. The reason, China in recent years experienced strong economic growth.
Nevertheless, this rapid expansion led to high inflation rates above the central bank's target. It also arises concerns the formation of asset bubbles.
The Chinese government is now trying to restrain the rate of inflation and a surge in property prices by tightening credit market. The central bank has raised interest rates five times in recent years and also increase the reserve ratio of banks. The central bank also reduced the amount of money that can be borrowed.
Decline
Bureau of Statistics data showed China's factory spending in China grew 18 percent in September from a year earlier. Although this figure is higher than the previous month, analysts expect China's exports likely to decline following the economic slowdown in coming months.
It is very possible considering the EU is the biggest buyer of Chinese goods, with a market of 380 billion U.S. dollars in 2010.
This concern is also evident from data last week that export growth weakened to 17.1 percent in September. This figure is down from 24.5 percent in the previous month.
Although there are concerns in terms of exports, China's economy still seems to be supported by domestic demand.