UPDATE 1-China wary on exports due to global economic clouds

* Question marks over world economy weigh on China exports

* Global pressure for yuan rise adds to exporters’ woes

* Labour shortages, rising wages hit industry on seaboard

BEIJING, April 22 (BestGrowthStock) – The outlook for Chinese
exporters remains grim because of the risk of a double-dip in
global growth, the Ministry of Industry and Information
Technology said on Thursday.

In a statement issued ahead of a news conference, the
ministry cited high U.S. unemployment, eurozone debt strains and
rising trade protectionism among the problems bedevilling the
world economy.

Although exports were now growing again in year-on-year
terms, the situation remained “complicated”, Zhu Hongren, the
ministry’s spokesman, told reporters.

In the same vein, he said a brisk rebound in industrial
production was mainly due to massive government stimulus;
underlying factory output had yet to recover to normal
pre-crisis levels.

The pressure that some developed countries were exerting on
China in many spheres, including their demands for a stronger
yuan exchange rate, was weighing on Chinese trade, Zhu added.

“The world economy and trade have started to recover, but
the global recovery is still very fragile. The process of
recovery is fraught with difficulty,” he said.

The comments underscore the divisions within the Chinese
government about the pros and cons of letting the yuan resume
its rise after pegging it near 6.83 per dollar since July 2008.

The Ministry of Commerce, which speaks for exporters,
opposes a stronger currency. The central bank, which would like
a more flexible exchange rate to help it conduct monetary
policy, is the leading advocate of abandoning the peg.

A tight job market was adding to exporters’ problems, Zhu
said.

Labour costs in coastal areas, including the Pearl River
Delta near Hong Kong and the Yangtze River Delta near Shanghai,
jumped 20-25 percent in the first quarter from a year earlier,
he said.

Firms in light industry, textiles and electronics were
finding it tough to hire enough people, Zhu said.
Stock Research

(Reporting by Zhou Xin and Alan Wheatley; Editing by Ken Wills)

UPDATE 1-China wary on exports due to global economic clouds