Economy

Europe debt crisis hurts China trade to region -researcher

(Agencies)
Updated: 2010-05-19 11:28

SHANGHAI - The euro zone debt crisis may lead to a slower growth rate for China's exports to Europe over the next few months, a researcher at the Ministry of Commerce said in remarks published on Wednesday.

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"In April, the growth in exports to Europe still stood at 25 percent, but the response is probably delayed. In May, June, and especially the third quarter, it will probably drop 6 to 7 percentage points," Huo Jianguo, head of the Ministry's think-tank, was quoted as saying in the Shanghai Securities News on Wednesday.

The impact, mainly from the fluctuation in the euro, is likely to hurt electronic and mechanic equipment makers, because their exports make up for more than half of the total volume, Huo added.

The yuan has risen nearly 14.5 percent against the euro so far this year, which is pressuring China's exporters and may influence the adjustment of China's trade policy, the paper said.