China Expects Yuan Reform, Debt Crisis to Impact Exports

China’s pledge for a more flexible yuan will slow the nation’s exports this year, adding to difficulties that include the European debt crisis and rising costs, a Chinese government official said.

“I’m not optimistic about the exports this year,” Yu Jianhua, a Ministry of Commerce director general, told reporters at the Group of 20 meetings in Toronto yesterday. “It’s essential for exporters to cut cost and keep their share in the world trade market.”