A "double dip" is unlikely for the Chinese economy in the second half of 2010, although the country's industrial value-added output and trade growth is expected to slow, said China's top industrial and commercial regulators.

China's industrial value-added output growth fell to 13.7 percent in June from 16.5 percent in May, raising concerns of recovery deceleration. But a year-on-year slowdown is inevitable as growths will be measured against last year's escalating growths month by month.

"We don't think there will be a 'double-dip' problem in the second half," said Zhu Hongren, spokesman of the Ministry of Industry and Information Technology. "China's industrial output may still grow more than 11 percent this year."

The slowdown is moderate and good for industrial restructuring because it is a result of active government controls, and China will continue to stabilize economic policies and help the recovery take hold for the remainder of the year, he said.

On July 20, the Ministry of Commerce forecasted declining exports prospects due to belt-tightening measures by EU governments deep in debt, and monetary tightening in Brazil, India and other emerging markets, in addition to material and labor cost increases and growing trade frictions.

While sovereign debt woes are cutting demand in the EU, China's biggest market, material and labor costs in coastal regions have increased 20-30 percent in the first six months, said Yao Jian, spokesman of the Ministry of Commerce.

As a solution, the ministry would retain tax rebates and offer easy credit to exporters, while importing more equipment and machinery for the processing industry, technology-intensive products and raw materials to facilitate the country's high growth, he said.

Export growth in the second half of this year may slow to just 16.3 percent, giving full-year growth of about 24.5 percent, the State Information Center, a leading government think tank, estimated.