China Yuan Shock Threatens Triple Whammy for Asian Exporters
- Even before the yuan weakened, China was eating Asia's lunch
- Battle for market share may become more intense as pie shrinks
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Even before Aug. 11, China was threatening to snatch market share from other Asian competitors in the key U.S. and European export markets.
Then the outlook for China’s Asian competitors worsened as the shock yuan devaluation loosened a dollar link that had kept the unit strong even while the currencies of most Asian competitors had weakened. All of a sudden, prospects for easy competitive gains versus China from currency depreciation had ended.