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07-09-2008, 02:26 AM
<b>China Exports May Slow, Fueling Calls to Limit Yuan</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Rising raw-material, energy and labor costs and a 6.6 percent gain in the yuan versus the dollar this year have squeezed profits, just as the outlook for demand abroad weakens, exporters say. <b>More than 2,000 shoemakers closed in Guangdong province</b>, the world's largest footwear production center, in the five months through May, according to the customs bureau.<!--QuoteEnd--><!--QuoteEEnd--><!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Almost a third of 70,000 Hong Kong-invested factories in China's Pearl River Delta may close or move out this year as higher costs and cuts to export incentives bite,</b> according to Danny Lau, chairman of the Hong Kong Small and Medium Enterprises Association.
``Conditions are extremely difficult,'' Lau said yesterday. ``The renminbi's appreciation is the major factor,'' he said, using another name for China's currency.
Growth in overseas shipments eased to 22.9 percent in the first five months, from 25.7 percent in all of last year, as demand in the<b> U.S., China's second-largest export market, weakened</b>. May's surge in exports may have been because a shortened holiday added three working days to the month compared with a year earlier
<!--QuoteEnd--><!--QuoteEEnd--><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->This year's appreciation in the yuan has been faster than the 7 percent pace in 2007, cutting import costs and helping government efforts to tame inflation that jumped to a 12-year high of 8.7 percent in February.<!--QuoteEnd--><!--QuoteEEnd-->
So finally, it is happening.
``Conditions are extremely difficult,'' Lau said yesterday. ``The renminbi's appreciation is the major factor,'' he said, using another name for China's currency.
Growth in overseas shipments eased to 22.9 percent in the first five months, from 25.7 percent in all of last year, as demand in the<b> U.S., China's second-largest export market, weakened</b>. May's surge in exports may have been because a shortened holiday added three working days to the month compared with a year earlier
<!--QuoteEnd--><!--QuoteEEnd--><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->This year's appreciation in the yuan has been faster than the 7 percent pace in 2007, cutting import costs and helping government efforts to tame inflation that jumped to a 12-year high of 8.7 percent in February.<!--QuoteEnd--><!--QuoteEEnd-->
So finally, it is happening.