Slumping euro adds pressure to Chinese exporters
7 November 2008
The renminbi's recent sharp rise against the euro has will further hurt Chinese exporters, intensifying pressure on policy makers in Beijing to come to their aid, Reuters reported. Though it is still unclear how much trade with the EU will be affected by the weak euro, trade publications have noted that it will have a particularly severe impact on exports of competitive industries such as clothing and shoes, for which growth has virtually halted this year. The large-scale closing of factories raises government concerns over social stability as unemployment rises. The BBC reported that 130,000 passengers per day have departed Guangzhou's train station, largely due to factory closures.
