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Small impact on exports

By Ding Qingfen (China Daily)
Updated: 2010-06-28 07:56

Toronto - China's foreign exchange reform and currency appreciation will not lead to a sharp change in its exports or diminish protectionist measures against China, a Ministry of Commerce official said.

Yu Jianhua, director-general of the ministry's department of international trade and economic affairs, also said he felt "unhopeful" about the country's export prospects in the second half of the year.

He believes exports will suffer from "the global economic recovery, suspended European debt crisis and rising costs of recruiting labor and raw materials".

"Chinese exporters involved in general trade will feel a greater impact than those in processing," he said.

China last week initiated a foreign exchange rate reform, two years after the Chinese government pegged the yuan to the US dollar in July 2008.

But American senators said on Thursday that China's move was not enough to produce rapid gains in currency revaluation.

"Trade protectionism against China will not diminish until other countries stop restraining Chinese imports," Yu said.