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China's recovery will continue to rely on exports and real estate as the transition toward consumption and manufacturing investment remains slow because of recurring outbreaks and rising commodity prices, Caixin said in a commentary. PPI's surge was transmitted downstream, curbing investment in production and consumers' purchasing power, Caixin said. Many smaller businesses still struggle to stay profitable, it said. Policymakers should beware of rising risks of local government debt, smaller developers' being squeezed by housing controls, commodity prices stoking inflation and high youth unemployment, Caixin said.