Japan firms split on yuan

Japan firms split on yuan

TOKYO: Japanese companies are split on the desirability of a possible appreciation of the yuan, with some saying it might prompt them to move factories in China to other bases in Asia, a survey said on Wednesday.

Some 43 percent of 366 Japanese firms surveyed by the Japan External Trade Organization (JETRO) in December said there would be both positive and negative effects to a stronger Chinese currency.

"A revaluation of the yuan could trigger companies to reassess the locations of their East Asian bases," JETRO said in a statement.

"Some respondents said they would increase their non-Chinese East Asian bases" to take advantage of an increase in the competitiveness of non-Chinese products due to a stronger yuan. Washington has pressured Beijing to liberalize the yuan exchange rate, fixed at 8.28 to the dollar since 1995. -- AFP