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China moves closer to economic soft landing

China moves closer to economic soft landing
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There has been some slowing of China’s economy. According to the latest government figures released in Beijing, in the three months from July to September it expanded by just over 9%. China’s leaders have been trying to restrain growth to avoid the economy overheating and the policy seems to be working.

Growth in the first three months of this year was 9.8%. It fell to 9.6% in the second quarter and is now down to 9.1%. Beijing is trying to avoid a so-called hard landing where the economy slows down too quickly. Analyst Alan Wheatley in Shanghai said: “When you consider how important China has become as a motor of global growth, lots of countries around the world, from Argentina to Canada to Chile would suffer rapidly if there was to be a rapid deceleration in China’s growth.” The Chinese government has introduced restrictions on bank lending and investment in areas like car manufacturing, construction and steel. However China’s growth is still racing far ahead of the official target for this year of about 7%.