"We get less business, and even if the factory is running, we cannot make money from that," Xie said. "Most of the businesspeople I know here have the same problem as me."
China's expansion is strong compared with the United States and Japan, where this year's growth is forecast in low single digits, but the slowdown has been painful for companies that depend on high growth to drive demand for new factories and other goods.
The slump raised the risk of job losses and unrest, posing a challenge to the ruling party as it prepares for a once-a-decade handover of power to younger leaders. The further quarterly decline had been expected after officials including President Hu Jintao warned that growth might slow further before recovering.
Premier Wen Jiabao, the country's top economic official, said Wednesday growth appeared to be stabilizing and expressed confidence China can meet its official targets for the year. Wen gave no growth forecast or a possible time frame for a recovery.
A Chinese recovery could help to boost demand for commodities but otherwise its contribution to global growth will be limited because the country meets much of its demand from its own factories, said Kowalczyk. He said that was reflected in the relatively weak September import growth of just 2.4 percent, well below the double-digit rates earlier this year.
"The impact on the rest of the world will be more psychological rather than real, major growth," he said. "But it is good to know the risks from China to the global economy are sharply lower."
AP researcher Fu Ting in Shanghai contributed.
Chinese National Bureau of Statistics (in Chinese): www.stats.gov.cn
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