Recently the NHK News on-line reported the following:
The number of new cars sold in Chinese last month was a little more than 1,650,000 vehicles, a decrease of 2.4% compared with the same month of the previous year and was a minus for two continuing months; the auto industry which had been driving the economic growth had slowed down and there was spreading concern whether its a downward trend from good business.
The China auto industry association announced on the 9th that the number of new cars sales last month was 1,656,000, and that was a decrease by 2.4% when compared with the same month of the previous year. It was a two-month continuation that Chinese new car registration was a minus compared with the same month of the previous year. This was regarded as due to a growth in a movement which refrained from large consumption because of the concern over the influence of European credit insecurity, coupled with the stringent conditions eligible for the subsidy provision from the Chinese government for the purchase of cars that had efficient fuel consumption, effective from October this year. Chinese new car registration last year amounted to 18,060,000 vehicles and was a 32% increase compared with the year before last, superseding the United States for two consecutive years and became the world's No.1. However, although the 16,810,000 total last month remained huge and the final volume of sales this year might exceed last year, but the rate of increase had fallen sharply and it was expected to be a few percent. The auto industry which had been driving the Chinese economy was extensively connected to raw materials industry from steel etc to electronic components, and concern had been spreading on whether this decrease was a downturn in business.
So some parts of the Chinese economy are begining to cool down as intended.