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Last Updated: Thursday, 19 October 2006, 06:25 GMT 07:25 UK
China economy applies the brakes
Builders in China
China is trying to curb spending on new construction projects
China's soaring economic growth rate slowed slightly to 10.4% in the three months to September, as government attempts to cool the boom took effect.

The year-on-year growth rate fell back from the record 11.3% growth seen from April to June, official data showed.

The government has raised interest rates twice this year and cut approvals for new business investment as it tries to prevent the economy overheating.

The latest data put inflation at 1.3% and showed industrial output slowing.

'Effective measures'

China has taken steps to dampen its economy because it worries that double-digit growth in investment and lending could soar out of control, fuelling inflation and leaving banks exposed to bad debts.

"These effective measures have successfully avoided the fast growth of the economy turning into an overheating," said a spokesman for the National Bureau of Statistics.

Four consecutive years of growth at over 10% have seen China pass Britain to become the world's fourth largest economy.

In a recent BBC poll, respondents said they expected China's economy to become the world's biggest economy in 20 years time.


SEE ALSO
China's trade surplus hits record
12 Oct 06 |  Business
China growth forecasts rise again
06 Sep 06 |  Business
China ups rates to cool economy
18 Aug 06 |  Business
Chinese economy 'could overheat'
27 Jul 06 |  Business
China set to be largest economy
22 May 06 |  Business

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