I can see about one fifth to one third of the factories are about to close, and owners are preparing to sell off their equipment, said Gao, general manager of Taiyuan Fanhe Engineering Co.China s economic growth has decelerated from overheated to slower than Beijing wanted in just half a year as export demand and consumer spending at home weaken, raising the threat of job losses and possible unrest.Chinese leaders are gradually reversing course after spending the past two years trying to cool growth and inflation. They are easing lending curbs and are expected to take other steps to shore up growth that fell to a nearly three year low of 8.1 percent in the first quarter and is slowing further.But they are moving cautiously after the stimulus that helped China avoid the 2008 crisis fueled inflation and a wasteful building boom.Everybody realized the stimulus was excessive, said UBS economist Tao Wang. This time, I think the government will be more cautious and more prudent.The slowdown adds to challenges for the Communist Party ahead of a once a decade handover of power to younger leaders this year.On Saturday, regulators reduced minimum reserves banks are required to hold in a move that frees up money for lending.
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