Thursday, February 3, 2011

Crop Protection China News 1013


Crop Protection China News 1013

Buy Now  : Market Research
China started the reform and allowed the RMB currency rise against the US dollar on 19 Jun. this year. The question that what appreciation of the RMB would bring to China’s economy remains unproved. But in principle, the appreciation of the RMB will boost import but will have a negative effect on export.
Owing to the fact that China’s pesticide industry is highly dependent on export, it will be heavily impacted by the RMB appreciation. In the same way, overseas companies that import pesticides from China should pay closer attention to the import now.
Chinese government prevented the RMB currency from rising against the US dollar in the past two years to promote export during the devastating global financial downturn. But in the long run, RMB appreciation is an inevitable trend.
Domestic enterprises need to do their utmost to cut costs and improve technologies. For example, Yangnong Group builds a chemical base in western China to reduce production cost; Noposion spends lots of funds on R&D to strengthen its competitiveness, etc.

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