China says exports to slow in second half
BEIJING — China's exports will slow in the second half of the year but European demand will not significantly drop despite the region's sovereign debt crisis, the government said Tuesday."We think…
BEIJING — China's exports will slow in the second half of the year but European demand will not significantly drop despite the region's sovereign debt crisis, the government said Tuesday."We think the situation in the second half will be quite complicated and the foreign trade outlook is no cause for optimism," commerce ministry spokesman Yao Jian told reporters."In the second half, export growth will fall due to a high base effect and uncertainties in foreign demand."Beijing is under pressure from trading partners over its yuan currency, which some say China deliberately undervalues to bolster its exporters.Yao said some exports to Europe would decline in the second half but "overall there will be no big drop due to demand for labour-intensive daily necessities."The yuan has gained less than one percent against the dollar since Beijing vowed last month to make the currency more flexible.Some critics, including US lawmakers, say the currency is undervalued by as much as 40 percent, giving Chinese exporters an unfair trade advantage.Exports soared in June, albeit at a slower pace than in May, as demand for Chinese-made goods remained robust despite Europe's financial woes and a tepid US recovery, official figures showed.Analysts said the strong export growth -- up 43.9 percent year-on-year -- would increase pressure on China to let its currency appreciate at a faster pace to help rein in its trade deficit with the United States. Copyright © 2010 AFP. All rights reserved. More »
last modification 2010-07-20 12:00:07
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