Shenzhen economy slowdown, reflecting national economic gloom

Shenzhen is a major city in the south of Southern China's Guangdong Province and Shenzhen has become a window facing the world since many new policies or businesses can be carried out in trial stage in Shenzhen.

Shenzhen economy is said to be a wind vane of national economy. Now Shenzhen has reported rare plunges in enterprise profits and trade in the latest sign that the country's economy is slowing amid global uncertainty.

The city's statistics bureau said on Monday that the profits of major industrial enterprises fell 3 per cent year on year in the first two months in 2012, and the sales fell by 5.4 per cent.

The city, which used to account for an eighth of China's international trade, saw exports plunge by 6 per cent and imports grow by just 0.3 per cent.

Across the nation, major industrial enterprises profits plunged 5.2 per cent in January and February, the first slide since the third quarter of 2009.

Premier Wen Jiabao warned that China faced many difficulties and challenges in domestic and overseas markets in his government work report early this month.

Economic growth is facing downward pressure now while inflation remains high.

The global financial crisis is still uncertain, and it is hard to resolve sovereign debt crises in some countries in the short term.

Unemployment remains high in major developed countries, which caused fewer orders that are placed to Guangdong manufacturers.