The financial and economic crisis in the U.S. spread faster than some expected and is denting China's economy in many ways.

The twice-yearly China Import and Export Fair in Guangzhou is an important barometer of China's exports. The most recent fair, held earlier this month, witnessed a 10 percent drop in trade volume. According to the Xinhua Agency, orders from the U.S. posted the biggest decline: more than 30 percent from last year.

China's State Council decided over the weekend to stimulate exports in the fourth quarter by raising the export tax rebate for "labor-intensive products such as garments and textiles, as well as mechanical and electrical products with high added value."

China's largest appliance maker, Haier, told a Guangzhou newspaper that the company's export of refrigerators, washers and dryers dipped 10 percent in the first nine months. The company also saw red for the first time in its export division of refrigerators, washers and dryers. The company has been canceling orders that are likely to be unprofitable, such as refrigerators.

The global economic slowdown has also flattened commodities prices. In turn, it affects Chinese recyclers, which adjust prices according to futures. News reports from across China show that many recyclers have closed their doors, in fear of a further downward trend.