China is the world's second largest economy after United States of America which grew at a very slow pace in the last quarter of 2011, slowest pace in the last two years. The rate of growth for the entire economy has fallen from 10.4% in 2010 to 9.2% in 2011. Chinese economy, which has an export led growth, has been deteriorating due to slowdown of demand from both US and European Union. As European Union is one of the largest trading partners of China, a slowdown in the EU has caused a slowdown in the domestic expansion of the economy. But it is expected that the domestic demand may help the economy to rebalance. Most of the growth of the Chinese economy at present is being created by domestic consumption and investment.