Onward for Yuan Reform (Part II)

Onward for Yuan Reform (Part I)

Caixin: After exchange rate reform restarted in July 2005, many worried that an appreciated and fluctuating yuan would impose unbearable burdens on export-oriented enterprises. Have these enterprises become more adaptable since then?

Hu Xiaolian: A survey of more than 1,000 foreign trade enterprises conducted by PBOC revealed that, from Q3 2006 to Q2 2008, and despite the influence of a number of negative factors including the appreciation of the yuan, a decrease in export rebate rates and rising labor costs, China's foreign trade enterprises witnessed steady growth in all parameters and became more resilient. China's exports have not suffered a substantial impact. From 2006-'08, the annual growth rate for exports and imports reached 23.4 percent and 19.7 percent, respectively. That period was regarded a prime time for foreign trade development.