For China’s Factories, a Weaker Currency Is a Double-Edged Sword -
By KEITH BRADSHERMARCH 1, 2017
FOSHAN, China — At first glance, given the way that China controls its currency,
the Guangdong Chigo Air Conditioning Company might seem like a winner.
The weaker currency still helps a number of companies, especially a small but growing group of Chinese companies
that export specialized or high-quality products and compete with Western companies.
“In China, companies feel a sense of safety, which is already a huge support” for business, said
Jackie Cheng, the vice president of Chigo and general manager for its overseas marketing.
The Carrier Corporation — which has partly reversed plans to move some production from the United States to Mexico after
coming under pressure from Mr. Trump — built seven air-conditioner factories in China more than a decade ago.
A weaker currency could push more Chinese people and companies to send their
money abroad, for fear of further losses if they continue to hold renminbi.
Half of its $1.2 billion in annual sales come from abroad, mostly in dollars,
and a weaker renminbi gives Chinese companies an advantage when they sell their products in other countries.