BEIJING, Jan 21 (Reuters) - China is unlikely to see a significant increase in external demand in 2010, a vice minister of commerce said, adding that currency fluctations due to an uneven global recovery will add risk for Chinese exporters.
Fu Ziying said it was unsustainable for China to rely on low-value exports as domestic production costs rise.
"As the foundation for global economic recovery is still not solid, it's unlikely that China will see significant growth in external demand," Fu said, referring to this year.
He told a forum on imports and exports in Beijing on Thursday that it will be difficult to coordinate a global exit strategy from stimulous measures adopted to fight the financial crisis, since different countries are at different stages of recovery.
Uneven recovery could drive fluctuations in major global currencies, increasing the risk for Chinese exporters, Fu said.
China has kept its currency unofficially pegged to the U.S. dollar since the summer of 2008. That makes it easier for its manufacturers to meet orders priced in dollars but increases friction with other trading partners concerned that the under-valued yuan makes Chinese exports more competitive.
"The December figure does not show a trend. It is just for a single month," Fu added, in response to questions about whether the rebound in exports that China recorded in December was sustainable.
Fu predicted rising trade protectionism in 2010.
(Reporting by Langi Chiang and Lucy Hornby; Editing by Ken Wills)