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Saturday, April 29, 2006
Japanese firms in China consider RP, others with yuan’s revaluation
Japanese companies operating in China have expressed apprehension over the revaluation of the Chinese yuan, prompting them to consider “moving operations to a third country.”
According to a report from the Japan External Trade Organization (Jetro), some 18.8 percent of 796 Japanese firms operating in different parts in Asia, including the Philippines and China, are anticipating negative effects to their business of the yuan revaluation.
Revaluate
The World Trade Organization has asked China to revaluate its yuan, which has been controlled by the Chinese government, to reign in the evaluation of the said country’s currency.
Bangko Sentral ng Pili-pinas Gov. Amando Tetangco Jr. said in a report that the low exchange rate of China’s yuan is the reason behind the country’s competitiveness in the export market.
“Those that appreciate less will gain competitiveness,” he said.
The Jetro report stated that the firms expecting negative effects of the yuan revaluation are drawing contingency measures to cushion the company from the effects. These measures include improving efficiency of local production or reducing costs, increasing local sales in China and “move operations to a third country.”
In a press conference, Jetro executive director Yasotumi Ota said Japanese companies are looking at the Philippines, among other countries in Asia, as an alternative to China. (JBN)
For Bisaya stories from Cebu. Click here. (April 29, 2006 issue)
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