China's economy is headed for an inflexible year, as the weaker demand overseas is hurting the nation'sexports.

A report was issued yesterday by the Chinese government, indicated that export orders fell last month even as manufacturing expanded.

As, The Shanghai Composite Index (SHCOMP) dropped 1.1% yesterday as stronger manufacturing boosted concern the world's second- largest economy will slowdown further as the government concerned from loosening the monetary policies to control inflation and curb property prices.

Also, the economy grew at a 9.2% rate in 2011 and its expansion will slow to 8.5% this year, according to economists' estimates.