BEIJING, May 11 -- Revaluing the yuan by 3 to 5 percent against dollar this year could slow China's annual export growth to less than 10 percent from last year's 35 percent.

    That's according to a government research report released on Tuesday. The report said China's exports would probably fall sharply if monetary authorities revalued the yuan.

    The report, written by Zhai Zhihong with the trade department of the National Bureau of Statistics, says hot money speculation on a yuan revaluation may flee China if the yuan rose in value, alleviating pressure on the currency.

    The United States has long argued the yuan has been undervalued which gives Chinese exporters an unfair advantage in global markets.

    Beijing has pledged to make the yuan more flexible over time, but has stressed pre-conditions such as a healthier financial system and a stable economy and also warned that it would not embark on any currency reforms while speculation was rife.

    (Source: CCTV.com)