Economy
Bumpy road ahead for exports
By Wang Xing and Chen Limin (China Daily)
Updated: 2010-04-23 09:05
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Workers put finishing touches to a cement rotary kiln for export at a factory in Jiangsu province. [Xiang Zhonglin / For China Daily] |
BEIJING - Export growth may slow in the second half of this year in China due to risks of a global double-dip recession and rising trade protectionism, the Ministry of Industry and Information Technology (MIIT) said on Thursday.
The ministry also said an appreciating yuan would impact nearly 70 percent of the nation's industrial exports and over 70 million jobs.
"The world economy and trade have started to recover. But the global recovery is still fragile and the process of recovery is fraught with difficulties," said Zhu Hongren, chief engineer and ministry spokesman.
He said the brisk rebound in industrial production during the past few months was largely due to massive government stimulus efforts.
Zhu's remarks also reflect the complexity for the Chinese government to decide whether to let the yuan appreciate in order to cool the economy and curb increasing domestic inflation pressure.
During the past few months, pressure on China to rapidly appreciate its currency has risen. But China has repeatedly said it would reform the currency system at its own pace.
China will not be subject to international pressure to revalue the yuan, Vice-Minister of Commerce Fu Ziying reiterated on Wednesday.
"Reform of the exchange rate will be conducted according to the actual (economic) situation," he told reporters in the Gabonese capital of Libreville during a tour of some African countries.
China's industrial output rose 19.6 percent in the first quarter of this year, with exports surging 28.7 percent, according to the ministry. Boosted by a series of government stimulus measures and subsidy plans, output of products from construction materials to autos have risen sharply.
Zhu said the booming growth in industrial output and exports may slow in the second half of this year, as high US unemployment, eurozone debt strains and rising trade protectionism raised question marks on the global economic recovery.
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Speculation that China may revalue its currency escalated this month. US Treasury Secretary Timothy Geithner delayed a report which was expected to label China a "currency manipulator" and made an unscheduled visit to Beijing.
But a record trade deficit of $7.2 billion in March announced last week helped China ease Western pressure on calls for a stronger yuan.
Zhu said the ministry will continue its efforts to adjust the country's economic structure and stick to the stimulus plans it previously announced.
