China Economic Review
Charting China’s changing economic terrain · Since 1990
Renminbi valuation idea a 'mistake'
April 28, 2010
US Chamber of Commerce directors will travel to Washington next week to put their case that a stronger renminbi won’t necessarily be good news for the US economy.
Christian Murck said that, while a stronger renminbi may help US exporters and China should eventually move to a free-floating currency, costs for large retailers sourcing products from China may rise.
A survey released earlier this month found 64% of the 220 member companies reporting no long-term impact if the renminbi appreciated by 5% against the US dollar. Another 21% of the companies said it would boost profitability and 7% said it would cause them to “seriously reevaluate” their business plans in China.
Bloomberg Business Week reported the Beijing-based group said, in a 323-page annual white paper published in English and Chinese, “While most members continue to be optimistic about China’s market potential, many have begun questioning their long-term viability in China as they consider the obstacles presented by an increasingly difficult regulatory environment.”