The weak economic data for the first seven months shows that L-shaped economy is not only a difficult trend but also a painful process.

Recently, some of the government officials have offered their insights into the current economy.

The research team at ANBOUND Consulting suggests that although on the face of it, the government researchers do not seem to be pessimistic, they are far from being optimistic.

China's economy will hit bottom in two years’ time, which means China’s economic growth could continue to decline from now until the end of next year.

Not only that this is a rather painful process, it will also test the leaders’ wisdom in relation to the timing in introducing the macro policies.

As rightly pointed out by some of the scholars, the balancing of the long and short-term policies is a difficult task.

When the economy continues to decline, it is more prone to introducing short-term stimulus measures to stabilize the economic growth while ignoring the mid-long term problems.

Thus, it is very important for the policy department to balance between the short and long term policies and to realize the changing of the driving force.