China's economy has been recently showing signs of flagging, such as shrinking exports. The photo shows a pier in Shanghai where export goods are shipped./ Source from search engine Baidu.

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By Hong Soon-do, Beijing correspondent, AsiaToday - China's economy is experiencing tough times this year. It's not an exaggeration to say there are almost no economic indicators that show bright side. If current trends continue, China could face economic downturn for a long time.

According to reports by Chinese state media outlets including Xinhua News Agency on the 10th, both exports and imports have raised concerns about the prospects of the Chinese economy. First, exports dropped 8.3% in July from a year earlier to $195 billion. Exports for the first seven months of the year were down 0.8% in dollar terms compared with a year ago. Imports fell to $152 billion, also a sharp fall of 8.1%. Imports for the first seven months of the year were down 14.6% in dollar terms compared with a year ago.

Producer prices, which are closely related to net profits of companies, are keep sliding. The producer price index fell 5.6% from a year earlier, compared with an expected 4.8% drop. It was the worst reading in 5 years and 9 months.

Consumer prices is also a worrying problem. China's consumer price index rose just 1.6% in July from a year earlier. The figures fall well short of the 3.5% target set by the Chinese government. In other words, domestic market is suffering heavy losses.

Of course, the Chinese authorities are aware that the present situation is problematic. This is one of the reasons why they are reviewing ways to stimulate economy through additional interest rate reduction. But this will be a tough decision as it could act as a burden if it stimulates so-called the 'bubble triangle' (credit, stock, and real estate bubble).