THE devaluation of currencies by some countries has led to sharp gains in the yuan which are hurting the competitiveness of Chinese exports, the trade ministry said Tuesday.

    The Ministry of Commerce did not identify the countries which it said were devaluing their currencies while promising China would keep the yuan at a “basically stable” level.

    The effective exchange rate of the yuan climbed 6.4 percent against a basket of currencies in 2014 and rose another 4.2 percent in the first three months of this year, the ministry said in an online statement.

    The yuan has been more subdued against the dollar, down 2.5 percent in 2014 and flat so far this year.

    “In the current state of economic downturn, some countries have used their exchange rates as an important tool to boost exports, stimulate the economy and push for currency devaluation,” the ministry said.

    “That has led to a sharp appreciation in the Renminbi, and seriously affected the international competitiveness of China’s export products,” it said, adding that Chinese exports faced rising pressure.

    At the same time, more countries were pursuing protectionist trade policies, and discriminating against nations that are not members of certain free trade agreements, it said.

    As of the end of October last year, G20 nations have imposed 962 trade restrictions, up 12.4 percent from a year ago and affecting US$757 billion worth of imports, the ministry said.

    China alone bears a quarter of the impact that protectionist measures have on trade, it said, citing research by Center for Economic Policy Research, a British think tank.

    The Chinese trade sector has been anaemic in the past year as unsteady foreign demand and plunging global commodity prices reduced shipments. Exports unexpectedly shrunk 15 percent in March compared with a year ago.

    While some exporters said they have not felt the impact of a rising yuan, thanks in part to the growing popularity of currency hedging options, few doubt that sales would suffer in the coming months if the yuan sustains its ascent.

    (SD-Agencies)