China's Economic Growth Slows

The Chinese economy is starting to feel the effects of the global credit crunch. For the third straight quarter, its rate of economic growth has slowed. However, China is currently a long way from being in a recession. Despite the slower growth, the economy still is expanding at a rate of 9%.

The fact is that economic growth and economic shrinking is a statistical measure while the population's sense of things rising or falling are relative. A 1% growth rate may feel great in a nation that has previously had a decline of 2%. That same 1% could feel like a recession to a nation that is used to much greater growth.

One must also remember that it is always easier for a developing economy's growth rate to soar because the GDP is so small in the first place. China is still far from a developed country. There are definitely pockets that are as advanced as any in the world, but overall, it has yet to reach the level of a developed nation like the US, Japan or Germany.

China's National Bureau of Statistics reported the 9% growth rate in the third quarter with a certain grave tone. In the previous quarter, the growth rate had been 10.1%. In the first half of the year, the rate was 10.4%, In the first three quarters of 2007, China's growth rate was 12.2%. Clearly, they must feel that things are going badly.

Li Xianchao, spokesman for the bureau, told a press conference, “There are no signs of a definite recovery from the financial crisis . . . The growth rate of the world economy has slowed down noticeably. There are more uncertain and volatile factors in the international economic climate," he said. "All these factors have started to release their negative impact on China's economy.”

Meanwhile, the developed world would be ecstatic with a growth rate a quarter of China's

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