China’s manufacturing expanded at the slowest pace in nine months in May as the government extended a campaign to cool inflation and the property market, a survey of companies indicated.

Slower expansions in the Asia Pacific region may fuel concern that growth will falter in a global economy already hampered by Japan’s disaster and Europe’s debt crisis.

The nation risks an “excessive downturn” if tightening measures last too long, Ba Shusong, a researcher at the State Council’s Development Research Center, said in a commentary published May 24. Non-deliverable yuan forwards fell in May by the most since November on speculation that a weaker economic expansion will encourage officials to slow the pace of the currency’s appreciation against the dollar.

Signs that the economy is cooling include weaker gains in industrial production. Car sales slipped in April and power shortages may also trim the nation’s expansion. The government is raising electricity prices for businesses and farmers in 15 provinces starting today, giving an incentive for generating companies to bring more supply online.

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