Chill wind blowing from the East- German exporters catch cold

Speaking in Washington, Lou Jiwei China's finance minister has hinted that the country’s economic growth may fall below 7% in 2013, but said that even this may not be the "bottom line".

That figure is below Beijing's official 7.5% target, and below most economists' forecasts for the country.

Mr Lou's comments highlight how rapidly the country is slowing down, as Beijing seeks to rein in a construction boom.

He also caused some confusion by implying that 7% was now the government's target, even though the target was set at 7.5% in March.

The government is particularly concerned about "wealth management products" (WMPs) - high-yielding investments sold to citizens with spare cash.

WMPs have been increasingly churned out by the banks - particularly the smaller banks.

The authorities fear that they are being used as a sneaky way to raise extra money to pour into the property market and other speculative activities.

However, WMPs also play a vital role in financing small privately-owned businesses, including China's dynamic small-scale exporters.

The German car industry is already feeling the impact of weaker export demand from China with Opel closing one of its factories next year. In China there are already reports of cash starved motor dealers refusing to deliver cars to car lots without upfront cash payments.

Any additional stuttering from the engine key to global recovery would have damaging impact on US and EU economies.