China's Exporters Struggle as Yuan Swings Disrupt Business
- Clients placing short-term orders on uncertainty, Midea says
- Currency estimated to decline further 3.8% by end-2016
epa05161726 A container ship is loaded at a port in Tokyo, Japan, 15 February 2016. According to the Finance Ministry, the Japanese economy shrank at an annualized rate of 1.4 per cent in the October-to-December period for the second contraction in three quarters. Exports fell 0.9 per cent for the first contraction in two quarters amid slow growth in China, while imports were down 1.4 per cent. EPA/FRANCK ROBICHON
Photographer: Franck Robichon/EPAThe yuan’s swings are becoming a headache for the Chinese companies that should have been the biggest beneficiaries of last year’s devaluation.
In rare overt comments, exporters including Midea Group Co. and TCL Corp. are expressing apprehension about the nation’s exchange-rate policy. Two said the increased volatility has made it difficult to manage costs because customers are choosing to place only short-term orders, while a third said the yuan was allowed to strengthen far too much in the past few years.