The 21st Century Business Herald carried an editorial opinion piece on Friday, commenting on the yuan appreciation and its implications on the Chinese manufacturing sector.
Key quotes
“The yuan’s recent surge may attract capital inflow and encourage speculative trading which can hurt industry development and economic growth in the long term.”
“The healthy growth of the manufacturing industry depends on stable exchange rates and costs, while excess liquidity and capital inflow create inflation risks and fan asset prices.”
“Policymakers should beware of a stronger yuan’s impact on the competitiveness of Chinese goods given that businesses already face rising raw material costs.”
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