"Only by the end of the second quarter will we be better able to tell whether there is a solid recovery," Wang says.

Tang Min, deputy secretary general of the China Development Research Foundation, echoes his view.

Tang says that even in Zhejiang Province, home to Wenzhou, many small and medium-sized firms are still experiencing difficult times with no signs that they are planning new investments.

"First-quarter economic data indicate signs of recovery, but these are natural results of record credit and aggressive government policies to stimulate the economy," he says.

And he warns there will be little investment in the second and third quarters.

The world economy is also showing no signs of a turnaround in coming months and demand for Chinese products will still be weak, Tang says.

Zhou Dewen, president of Wenzhou's association of small and medium-sized enterprises, is more pessimistic.

It is too early to talk of an overall recovery since overseas demand continues to slump, Zhou says, and Wenzhou's manufacturing economy has not reached the bottom.

Even Wang Wenxu is worried though production is close to pre-slowdown levels.

"In April, so far, so good. But I am really not certain what will happen in May and June. There are still uncertainties in both the Chinese and world economies," he says.

(Xinhua News Agency April 20, 2009)