Tougher Times for Chinese Firms

[Guest Tony n Terrific]

The global economic downturn, worsened by the US financial crisis, has led to reduced demand for Chinese exported goods. This is coupled with the appreciation of the yuan and rising costs for labor, land and raw materials.

The yuan has appreciated by more than 20 percent against the dollar since July 2005, when the China depegged the currency from the dollar. If it appreciates a further 5 percent, 62 percent of those surveyed said it would deal a major blow to them, an increase of 10 percent from a year ago.

 

 

http://www.chinadaily.com.cn/china/2008-11...ent_7213672.htm