Global recovery fears as Chinese growth slows

China's rapid growth slowed in the latest quarter as Beijing steered its expansion to a more sustainable level, possibly cutting its contribution to a global recovery.

The world's second-largest economy grew 9.6 per cent year-on-year in the three months to the end of September, official figures showed yesterday.

The growth was down from the previous quarter's 10.3 per cent but still by far the highest of any major economy.

Politically-sensitive inflation edged up in September on higher food costs but incomes also rose strongly.

The growth decline might dent a global recovery as China's appetite for iron ore, factory machinery and other imports weakens. That could hurt the United States, Australia, Europe and other economies that are looking to relatively robust China to power exports.

Alistair Thornton, China analyst for IHS Global Insight, said: "Short-term the slowdown means China will have less demand for goods from the rest of the world.

"But long-term, the slowdown could be a benefit to the world economy because the Chinese economy cannot keep going at such a high pace and in such an unbalanced way."

The data came ahead of today's G20 finance ministers' meeting in South Korea, where the United States and other countries are expected to push for a stronger Chinese currency. Beijing has been criticised for keeping the value of the yuan low.