bloomberg: China is starting to gain control of its turbocharged economy, just as a U.S. slowdown raises the risks of doing so.

A narrowing trade surplus and declining money-supply growth are among the first signs that the world's fourth-largest economy is pulling back from its fastest expansion in 13 years. The government has raised interest rates six times in a year, restricted credit, frozen some prices and let the currency appreciate to damp growth and inflation. The risk is that, with months of effort to cool off China finally taking hold when the U.S. is already flirting with recession, both main engines driving the global economy may power down at the same time.
``As foreign demand deteriorates, China may overdo its tightening of policy and cause a sharp economic slowdown ``If the central bank raised interest rates too much, it would damp domestic demand and increase the danger of economic downturn.''