Data raise rebound doubts (4)

"Properly expanding budget deficits, along with enlarging bond sizes issued by local governments and extending the pilot project to replace the business tax for the services industry with a value-added tax, will be necessary for driving up economic growth in 2013," Chen said.

Arousing the vitality of private investment, which will lead to an inherent economic recovery rather than the current revival mainly driven by government-led investment, is even more important, Wang Jun said

Zhang Zhiwei and Wendy Chen, economists at Nomura Securities Co Ltd in Hong Kong, said in a research note that despite the slowdown in November's trade data, "we maintain our view that the economic recovery in China is on track as it is mostly driven by domestic demand".

"Infrastructure and housing investment will likely strengthen further in the coming months as the monetary policy remains loose. We continue to expect GDP growth to rebound sharply in Q4 to 8.4 percent from 7.4 percent in Q3," he said.

China's industrial output rose 10.1 percent in November from a year earlier, and retail sales climbed 14.9 percent, the fastest pace for both since March, according to data from the National Bureau of Statistics on Sunday.

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