China Should Be Wary Of A Relatively Strong Yuan-40 Forum

China should allow the yuan to make adequate adjustments in response to changes in a basket of currencies including the euro, the yen and the Korean won to maintain its export competitiveness, according to an article published by China Finance 40 Forum citing Sun Mingchun, chief economist of Haitong International. Currently, the yuan only weakens limitedly against the U.S. dollar when many non-U.S. currencies are depreciating sharply against the dollar, said Sun. This could pose challenges to Chinese exporters should the euro depreciate further amid possible recession in the euro zone in the next six months to a year, Sun was cited as saying.