China's economy recovering but torrid growth over

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by Associated Press

WCNC.com

Posted on November 19, 2012 at 6:18 AM

BEIJING (AP) -- Zhang Hanzhong, who supplies locks for auto manufacturers, is part of a swath of China's economy that is lagging in a two-speed recovery. 

Business for retailers, hotels, photo studios and other service industries is picking up as China limps out of its deepest slump since the 2008 global crisis. But exporters and manufacturers who drove its boom over the past decade are struggling. 

Zhang's sales are down 20 percent with no rebound in sight, while labor costs are up. 

China is recovering but the days of double-digit growth are gone. Faced with falling returns from a three-decade-old growth model fueled by exports and investment. 

Beijing is trying to rebalance the economy by promoting consumer spending, service industries and technology. It is a strategy that promises smaller but more sustainable gains.
 

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