China faces pressure to reverse economic slump

China's economic growth has fallen from overheated to slower than Beijing wanted in just half a year. That raises 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.

But they are moving cautiously after the stimulus that helped China avoid the 2008 crisis fueled inflation and a wasteful building boom.

UBS economist Tao Wang says, "This time, I think the government will be more cautious and more prudent."

The slowdown adds to challenges for the Communist Party before a once-a-decade handover of power to younger leaders this year.