Recent economic data has shown that China is still facing downward pressure and that domestic demand remains weak.

China's consumer price index, the main gauge of inflation, fell to 1.2 percent year-on-year in May, the ninth straight month that the rate was below 2 percent, according to data released Tuesday by the National Bureau of Statistics (NBS).

Customs data also showed on June 8 that trade volume in May decreased 9.3 percent year-on-year to $322 billion, with exports falling 2.5 percent to $190.8 billion. Meanwhile, the Producer Price Index (PPI) declined 4.6 percent in May year-on-year, according to the NBS.

The property and manufacturing industries saw declines in the first quarter this year, and the data for May indicates that the economy hasn't seen any significant recovery since then.

The central government is likely to continue to adjust economic policies, but it's time for the authorities to rethink their strategy. For instance, the government can't reduce financing costs for enterprises through increasing money supply.

In fact, data for finance, consumption, trade, and stock indexes are not enough to indicate whether the economy is in recovery. Only when enterprises have sound finances and infrastructure investment is strong will it be clear that the economy is recovering.

The author is Li Xiaodan, a media personality.

Eeo.com.cn