China Rejects `Hard Landing’ Risk From Weaker Exports

From Bloomberg:

’s central bank rejected predictions that exports will because of the U.S. economic slump, signaling makers are unlikely to relax lending curbs or stem the yuan’s appreciation.

“Some think drastically weakening external demand may lead the economy to a hard landing and that we should loosen policies,” the bank’s financial research institute said in a report e-mailed to News yesterday. Analysis of exports should be objective and “not exaggerated,” it said, adding that a “drastic” slowdown in shipments won’t come soon.

China has allowed the yuan to gain 5 percent against the dollar this year and told banks to set aside more reserves four times as it battles inflation near a 12-year high. The report shows that the ’s Bank of China regards rising prices, exacerbated by last month’s earthquake, as a bigger threat than cooling export demand.

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