By Catherine Boyle, CNBC.com Staff Writer
NEW YORK ( CNBC) -- Disappointing Chinese GDP (gross domestic product) figures for the third quarter come amid increasing worries about inflation and local government debt in the economic powerhouse. Government data showed the Chinese economy grew at its slowest rate for two years in the third quarter of 2011. There are increasing worries about inflation in the country.
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"A 30% drop in the value of the euro would not be appreciated in Beijing." He believes that Chinese companies are trying to "emulate German engineering" above all else. Recent spikes in Chinese CDS spreads, which have almost doubled in the past six months to close at 145 yesterday, show that traders are worried about the Chinese economy, according to Godber, who called current levels "extraordinary." "One of the big areas of concentration is the debt situation, not necessarily at the top of government but that the individual local authorities may have over-extended themselves or over-borrowed," he said. -- Written by Catherine Boyle, CNBC.com Staff Writer