Cheaper ASEAN exports

Cheaper ASEAN exports

BEIJING (AFP): Chinese central bank governor Dai Xianglong said yesterday he was nonplussed by sharper export competition from Southeast Asian nations after the devaluation of their currencies.

"Some countries in Southeast Asia have enhanced their export ability because of their currency devaluation and this has added a competitive edge to those nations compared with China," said Dai, who is governor of the People's Bank of China.

"But their exports are different in terms of products and export markets and I do not think there will be a major impact of China's exports," he told a media briefing.

The Thai baht, Malaysian ringgit, Philippine peso and Indonesian rupiah have all devalued in the last month following intense currency speculation in the region.

"In the second half, China's foreign trade exports will continue to enjoy a surplus, foreign reserves will increase and China's international balance of payments will not be affected," Dai said.