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China Suppliers RMB rise worries at 107th Canton Fair

Posted by Aliuser on Apr 19, 2010 in China Import and Export, Trade shows

Attending at 107th Canton Fair 2010, which is also known as China Export and Import Trade Fair (广交会), many China exporters and supplies become increasingly concerns about their competitiveness in exporting products as a result of the potential rise of RMB or Chinese Yuan.

Chinese-exporters-worries-yuan-appreciation

China is currently under great pressure and is pushed to reevaluate its currency by the US. Tension over RMB appreciation between China and Washington has intensified as the mainland government is labelled as a currency manipulator. US politicians and lawmakers even proposed legislation to impose tariffs on Chinese goods unless China allowed the Yuan to climb.

“If the exchange rate of yuan increase 1%, our profits will drop more than 10%,” said Wan Linzhong, manager of the Yancheng Novelty Electronic Co., Ltd, reported by Live Trading News.

China CPI and PPI rose in March

Last week, National Bureau of Statistics (NBS) revealed that China’s economy expanded 11.9 percent year on year in the first quarter of 2010 to 8.06 trillion yuan.

Consumer price index (CPI) rose 2.4 percent year on year in March, but went down 0.7 percent month on month; and Producer price index (PPI), a major measure of inflation at the wholesale level, rose 5.9 percent in March from a year earlier.

China’s trade surplus this year may fall by another 100 billion US dollars after a drop of 100 billion US dollars in 2009, said Yao Jian, spokesperson of the Ministry of Commerce (MOC).

Yao said that China may incur monthly trade deficit in the rest of the first half of this year.

As part of efforts to cool down overheating economy and curb property speculation, The Chinese government has raised the down payment for second-home buyers to a minimum 50 percent of the value from 40 percent.

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