Rising yuan stymies Canton Fair exports

Based on export deals signed at the fair, seen as a key barometer of China's trade development, export-oriented companies should adopt an active attitude to cope with the rising value of the currency, according to Wen Zhongliang, deputy director of the Department of Foreign Trade at the Ministry of Commerce.

"The rising value of the renminbi is an indicator of China's rapid economic development in recent decades. Chinese export-oriented companies should not worry too much about the negative effect it has brought about," Wen said.

He suggested Chinese exporters should fix the exchange rate or allow for fluctuations when signing long-term orders with overseas buyers.

Fu Keda, president of the Beyond Garments Co Ltd in Ningbo, Zhejiang province, said he insisted on allowing for changes in the exchange rate when signing long-term deals with overseas buyers.

"Transactions will be based on exchange-rate fluctuations from each quarter or half-year. That will allow us to avoid losses," Fu said.

In addition, Wen Zhongliang said Chinese manufacturers should focus more on upgrading their businesses and developing new customers in emerging markets.