how RMB devaluation affect us ? Chinese yuan economy weak 貨幣貶值給我們帶來何種影響

China’s effective devaluation of its yuan currency, which by Thursday had fallen almost 5 percent in three days, is intended to boost the country’s flagging export growth. But aside from making Chinese products cheaper abroad, it will of course also make foreign goods more expensive in China. And the devaluation comes at a time when the government is encouraging Chinese manufacturers to upgrade their technology, often using imported technology -- and when authorities have taken steps to promote imports, in an attempt to rebalance China's economy and reduce its trade surplus. In recent months they have reduced import tariffs on a range of goods, and pledged to ease cross-border e-commerce, partly to satisfy pent-up demand among Chinese consumers for better-quality goods. So will the devaluation undermine these policies, and affect sales of foreign goods in China? Signs of global anxiety are already visible in the drop in share prices of global luxury companies this week. And Li-Gang Liu, chief economist for greater China at ANZ Bank, says there are grounds for such concerns. “In general the devaluation will have a negative impact on Chinese imports. We may see less Chinese demand for luxury goods and, for example, good quality beef from Australia or milk from New Zealand,” he told International Business Times. If the devaluation affects consumer confidence, this could hit spending, however. Some reports from Shanghai say people have been queuing up to change yuan into U.S. dollars in case of further devaluations. Shanghai analyst Xi said that, while he saw the devaluation as a “rational” response to China’s slowdown in manufacturing growth, it could encourage some wealthier people to “consider whether to move property and other investments out of China.” However, Xi added that the central bank was clearly seeking to prevent this from happening, and insisting that the exchange rate had basically stabilized. ANZ's Liu also noted that the People's Bank of China appears to be taking steps to “intervene to keep the exchange rate at around 6.45 yuan to the dollar,” or approximately 3.5 percent lower than prior toTuesday’s devaluation. Overall, Liu said, the devaluation may have little effect on consumer confidence, which has been relatively low in recent months anyway, due to the fall in the value of China’s stock markets since June and the overall “sluggish economic outlook.” Liu said most domestic consumers were still mainly concerned about the price of domestic products such as pork rather than the cost of imported goods. And while the devaluation could help some export firms, and provide a “small lift to the economy,” he said this would still have a limited impact on factors such as wages and employment. He added that further cuts in bank lending rates might be needed if the government were to achieve its goal of stimulating consumer spending. how RMB devaluation affect us ? Chinese yuan economy weak 貨幣貶值給我們帶來何種影響,for more information about china world news visit site at http://youtube.com/user/worldinchinese/videos as well as business website at http://penglaichina.com