Exports fail to show Sars impact

China's exports rose by 37 per cent year-on-year in May to reach U5533.8bn and imports rose by 41 per
cent to reach US$31.6hn, People's Daily said. The export rise was attributed to the
increasing competitiveness of Chinese goods in Europe following the appreciation of the
euro against the US dollar, to which the yuan is effectively pegged.
However, the newspaper warned that the Sars outbreak would probably have a negative impact on trade
in coming months. Although the year-on-year growth in exports was the highest for four
months, the value of exports was 5 per cent lower than in April, while that of imports was 8
per cent lower.
The State Information Centre, a govern-ment research unit, has forecast
that export growth would slow to 28 per cent in the sec-ond quarter from the first quarter's
34 per cent. The government has also said that textile exports would rise by as little as 7
per cent this year, half last year's rate.