China's economy grew at a rate of 10.3 per cent over the year to the April-June quarter, less than the 11.9 per cent jump in January-March, the National Bureau of Statistics reported.
Other figures indicate that a tighter government credit policy to cool the economy is having its effect. Inflation in June dropped to 2.9 from 3.1 in May. Industrial output slowed to 13.7 per cent against May’s 16.5 per cent.
However, what appears to some as an economy under control, to others is an economy that is starting to send negative signals.
The fear of a real estate bubble has led the government to turn off the credit tap, reducing demand for construction material, raw materials, minerals, etc.
The slight gain of the yuan has also affected Chinese exports, cutting into production. This has increased unemployment, and reduced consumption.