China Says Economic Growth Slowing

Beijing (AP) - China's rapid growth slowing as the impact of its tremendous impetus eases and Beijing clamps down on credit boom.

The world's third largest economy grew 10.3 percent in the second quarter, more than a year ago, down from the first quarter of explosive 11.9 percent expansion, the National Bureau of Statistics said Thursday.

A decline in Chinese growth may have global consequences if it reduces demand for imported iron ore, industrial parts and other foreign goods.

China rebounded quickly in the global crisis by force, mass and encourage bank lending. Global companies are looking at the Chinese market to help drive sales amid weak demand elsewhere.

But Chinese leaders worry about rising inflation pressures, which urges housing prices and possible bad debt of state-owned banks next record lending last year. They are clamping down on credit and is trying to block overinvestment in the industry.

"While we have this good start, we still have to keenly aware of the unstable situation in China and out of many difficulties and challenges we face in this country," said statistics bureau spokesman, Sheng Laiyun, at a press conference.

Recent data leave China poised to pass Japan as the second largest economy behind the United States. China's reported 2009 issue $ 4.98 trillion, just behind Japan's $ 5.1 trillion. And China is growing faster than its neighbor.

June consumer inflation eased to 2.9 percent from May's 3.1 percent, which broke through the government's official target for the year, 3 percent, the statistics bureau reports.