Chinese Exports Unable to Take Big Yuan Gains, Newspapers Say

China’s exporters are unable to withstand large fluctuations in the yuan, Chinese newspapers including the China Securities Journal and China Daily wrote today after the central bank pledged greater flexibility for the currency.

External demand remains “uncertain,” and shipments may fall in the second half because of the European debt crisis, the China Securities Journal, the nation’s largest financial newspaper, wrote in an editorial. Large yuan gains against the dollar combined with the European crisis would create a “double whammy” for exports, it wrote.