Taiwan will benefit from strong Chinese yuan: economists
Central News Agency
2010-02-25 04:50 PM
Taipei, Feb. 25 (CNA) Taiwan and Taiwanese business operators in China will benefit from an appreciation of the Chinese currency, as a stronger yuan will lead China to buy more, which in turn would boost Taiwan's exports, economists of a local think-tank said Thursday.
Chen Miao, director of the Taiwan Institute of Economic Research's Macroeconomic Forecasting Center, said a stronger Chinese yuan will spur other countries to adjust commodity prices and will have a positive impact on foreign trade in Taiwan and Southeast Asian countries.
Sun Ming-te, deputy director of the center, agreed that appreciation of the yuan will be good news for Taiwan and its business operators in China because Taiwan's exports will rise as result of China's stronger purchasing power.
Quoting the latest world trade statistics, Sun said China posted a mild 20 percent growth in export trade in January, but its imports jumped by a whopping 80 percent during the same month. China remained Japan's major export market in January, he noted.
China's central bank has raised its savings reserve requirement rates twice recently, which is an indication of Beijing's growing worry over possible property and stock market bubbles, he said.
Beijing is now caught in a dilemma of whether to strengthen the yuan, he added. A stronger yuan will help boost China's foreign trade, imports in particular, but could also spur an influx of hot money that could fuel property and stock market bubbles, he added.
(By Erin Ho and Deborah Kuo)
Central News Agency
2010-02-25 04:50 PM
Taipei, Feb. 25 (CNA) Taiwan and Taiwanese business operators in China will benefit from an appreciation of the Chinese currency, as a stronger yuan will lead China to buy more, which in turn would boost Taiwan's exports, economists of a local think-tank said Thursday.
Chen Miao, director of the Taiwan Institute of Economic Research's Macroeconomic Forecasting Center, said a stronger Chinese yuan will spur other countries to adjust commodity prices and will have a positive impact on foreign trade in Taiwan and Southeast Asian countries.
Sun Ming-te, deputy director of the center, agreed that appreciation of the yuan will be good news for Taiwan and its business operators in China because Taiwan's exports will rise as result of China's stronger purchasing power.
Quoting the latest world trade statistics, Sun said China posted a mild 20 percent growth in export trade in January, but its imports jumped by a whopping 80 percent during the same month. China remained Japan's major export market in January, he noted.
China's central bank has raised its savings reserve requirement rates twice recently, which is an indication of Beijing's growing worry over possible property and stock market bubbles, he said.
Beijing is now caught in a dilemma of whether to strengthen the yuan, he added. A stronger yuan will help boost China's foreign trade, imports in particular, but could also spur an influx of hot money that could fuel property and stock market bubbles, he added.
(By Erin Ho and Deborah Kuo)