RPT - China should be wary of US downturn impact on exports - report |
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Fri, 16 Nov 2007 01:50
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BEIJING (XFN-ASIA) - China should be wary of a sharp slowdown in US economic activity and the corresponding impact on Chinese exports, Ministry of Commerce researchers said in a report carried by the official China Securities Journal.The newspaper quoted the ministry's policy research department as saying the Chinese government needs to maintain a 'consistent' external policy stance to minimize risks associated with a drastic fall in export demand.China's export prospects have been dampened by the slowdown in the US economy.'The risks of economic slowdown in the US, credit-tightening, and more volatile emerging financial markets have added to the the uncertainties in the world economy, and therefore plague our export prospects,' the report said.'East Asia and Europe will bear the brunt of the slowdown,' it said.The growth of China's exports to the US has decelerated to 12.4 pct year-on-year in the third quarter, down from 15.6 pct in the second and 20.4 in the first.Moreover, the inverse movements of US and China interest rates will also make China's macroeconomic fine-tuning more difficult.'This could offset our efforts in curbing domestic inflation and overheating in the stock and property markets,' the report said.China faces the risk of a spike in money inflows as international capital seeks a safer place in light of the current credit situation in the US.'This has already posed a challenge to China's financial regulators,' it said.jianbo.wu@xfn.com-xfnjbw/xfntm/xfntmCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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China should be wary of US downturn impact on exports - commerce ministry 